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New York Increases The Minimum Wage

On April 4, 2016, New York Governor Andrew Cuomo signed a law which will significantly increase the minimum wage in New York State from the current rate of $9, to $15 by the end of 2018 for many businesses in New York City, and to $15 by the end of 2021 for the New York City commuter counties of Nassau, Suffolk and Westchester. The minimum wage for the remainder of the state will reach $12.50 by the end of 2020. In enacting this law, New York joins California as the only two states in the country, which have instituted a $15 minimum wage.

The timing and scope of the minimum wage increase varies depending on which county in New York State an employee works, and the size of the business. For instance, for employees in New York City who are employed by a company that has 11 or more employees, the minimum wage will increase to $11 per hour in 2017, $13 in 2018, and $15 per hour in 2019. However, for employees in New York City who are employed by a company with 10 or fewer employees, the minimum wage increases are smaller and are implemented over a longer time period, with the minimum wage rising to $10.50 in 2017, $12 in 2018, $13.50 in 2019, and $15 in 2020.

For employees who work in the New York City commuter counties of Nassau, Suffolk, and Westchester, the minimum wage will increase to $10 in 2017, and then will increase in $1 increments at the end of each year, until the minimum wage reaches $15 at the end of 2021.

For workers in the rest of New York State, the minimum wage will increase to $9.70 at the end of 2016, and then will increase in $0.70 increments at the end of each year, until the minimum wage reaches $12.50 at the end of 2020.

After 2020, the minimum wage will increase to $15 in increments determined by the state Director of the Division of Budget in consultation with the state Department of Labor.

Contact us at Cilenti & Cooper, PLLC for more information on the new overtime rule or other pay-related matters in New York. Our firm is centrally located in Manhattan and serves all boroughs including Manhattan, The Bronx, Brooklyn, and Queens.

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