Do you know the 2023 New York minimum wage? Actually, there are different minimum wages for different parts of the state and different industries. Employers must be ready before the end of the year to meet the new requirements that apply to their employees.
The 2023 New York minimum wage rates are shaded in blue in the tables below. Note that the changes take effect on the last day of the year, not January 1st.
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Standard New York Minimum Wage
The 2023 New York minimum wage varies by geographic location and sometimes by industry.
For most private employers, the 2023 New York minimum wage in the following chart applies. This chart also applies for non-teaching employees of public school districts or a BOCES. However, there is no New York minimum wage for other employees of public (governmental) employers (but the federal minimum wage of $7.25 does apply).
| Location | 12/31/21 | 12/31/22 |
|---|---|---|
| NYC – Large Employers (of 11 or more) | $15.00 | $15.00 |
| NYC – Small Employers (10 or less) | $15.00 | $15.00 |
| Long Island & Westchester | $15.00 | $15.00 |
| Remainder of New York State | $13.20 | $14.20 |
* Annual increases for Upstate New York will continue until the rate reaches a $15 minimum wage. The annual increases will be published by the Commissioner of Labor by October 1. They will be based on percentage increases determined by the Director of the Division of Budget, based on economic indices, including the Consumer Price Index. The report on the December 31, 2023 increase is available here.
Minimum Wage for Tipped Employees in the Hospitality Industry
New York State has separate minimum wage rules for employees in the hospitality industry. These rules apply to businesses running a restaurant or hotel.
The minimum wage rates for most non-tipped employees in the hospitality industry are set as per the schedule above. However, employers may count a portion of certain tipped employees’ gratuities toward the minimum wage requirements. This is known as a “tip credit.”
New York State has two separate cash wage and tip credit schedules for tipped hospitality employees who qualify as “food service workers” and “service employees.”
Food Service Workers
A food service worker is any employee who is primarily engaged in serving food or beverages to guests, patrons, or customers in the hospitality industry who regularly receive tips. This includes wait staff, bartenders, captains, and busing personnel. It does not include delivery workers.
| Location | 12/31/21 | 12/31/22 |
|---|---|---|
| NYC – Large Employers (of 11 or more) | $10.00 Cash $5.00 Tip | $10.00 Cash $5.00 Tip |
| NYC – Small Employers (10 or less) | $10.00 Cash $5.00 Tip | $10.00 Cash $5.00 Tip |
| Long Island & Westchester | $10.00 Cash $5.00 Tip | $10.00 Cash $5.00 Tip |
| Remainder of New York State | $8.80 Cash $4.40 Tip | $9.45 Cash $4.75 Tip |
Service Employees
The next schedule applies to other service employees. A service employee is one who is not a food service worker or fast food employee who customarily receives tips above an applicable tip threshold (which also follows schedules, not shown here).
| Location | 12/31/21 | 12/31/22 |
|---|---|---|
| NYC – Large Employers (of 11 or more) | $12.50 Cash $2.50 Tip | $12.50 Cash $2.50 Tip |
| NYC – Small Employers (10 or less) | $12.50 Cash $2.50 Tip | $12.50 Cash $2.50 Tip |
| Long Island & Westchester | $12.50 Cash $2.50 Tip | $12.50 Cash $2.50 Tip |
| Remainder of New York State | $11.00 Cash $2.20 Tip | $11.85 Cash $2.35 Tip |
Fast Food Minimum Wage
Non-exempt employees at some “fast food” restaurants are subject to an alternative minimum wage schedule.
This schedule applies to employees who work in covered fast food restaurants whose job duties include at least one of the following: customer service, cooking, food or drink preparation, delivery, security, stocking supplies or equipment, cleaning, or routine maintenance.
These special New York minimum wage rates only apply to fast food restaurants that are part of a chain with at least 30 restaurants nationally.
As of July 1, 2021, the minimum wage for fast food workers throughout the state is $15.00 per hour. No further increases are currently scheduled.
Note: No tip credit is available for fast food employees.
Overtime Threshold
Along with increases to the 2023 New York minimum wage, the salary requirement to maintain some overtime exemptions will also increase.
The salary threshold for New York’s executive and administrative exemptions go up on December 31st. These amounts are all higher than the federal Fair Labor Standards Act (FLSA) threshold of $684/week. But most New York employers (other than governmental entities) must satisfy the higher New York threshold to ensure full overtime exemption.
There is no salary requirement for New York’s professional exemption. But employers must also satisfy the FLSA threshold for most professional employees. Doctors, lawyers, and teachers do not have a salary requirement for exemption.
| Location | 12/31/21 | 12/31/22 |
|---|---|---|
| NYC – Large Employers (of 11 or more) | $1,125.00 | $1,125.00 |
| NYC – Small Employers (10 or less) | $1,125.00 | $1,125.00 |
| Long Island & Westchester | $1,125.00 | $1,125.00 |
| Remainder of New York State | $990.00 | $1,064.25 |
Prepare Now for the 2023 New York Minimum Wage
New York employers should review their compensation levels and make necessary changes by December 31, 2022. Updates might result in increasing an employee’s hourly wage or salary or reclassifying exempt employees to non-exempt if they will no longer meet the exemption salary requirement.
And, remember, the 2023 New York minimum wage rates only last one year in some cases. Companies will have to review this again next year (or sooner).
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