Tag: overtime exemptions

2025 New York Minimum Wage

2025 New York Minimum Wage

Do you know the 2025 New York minimum wage? Actually, there are different minimum wages for different parts of the state and different industries. Employers must be ready by the end of the year to meet the new requirements that apply to their employees.

The 2025 New York minimum wage rates are shaded in blue in the tables below. The changes take effect on January 1st.

[Follow us on LinkedIn for frequent updates for New York employers.]

Standard New York Minimum Wage

The 2025 New York minimum wage varies by geographic location and sometimes by industry.

For most private employers, the 2025 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).

The chart also shows scheduled minimum wage increases for 2026.

General Minimum Wage Rate Schedule
Location202420252026
NYC, Long Island, & Westchester$16.00$16.50$17.00
Remainder of New York State$15.00$15.50$16.00

* After 2026, future New York minimum wage increases will occur based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region. In other words, the minimum wage will be indexed to inflation.

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

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.

Hospitality Industry Tipped Minimum Wage Rate Schedule (Food Service Workers)
Location202420252026
NYC, Long Island, & Westchester$10.65 Cash
$5.35 Tip
$11.00 Cash
$5.50 Tip
$11.35 Cash
$5.65 Tip
Remainder of New York State$10.00 Cash
$5.00 Tip
$10.35 Cash
$5.15 Tip
$10.70 Cash
$5.30 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).

Hospitality Industry Tipped Minimum Wage Rate Schedule (Service Employees)
Location202420252026
NYC, Long Island, & Westchester$13.35 Cash
$2.65 Tip
$13.75 Cash
$2.75 Tip
$14.15 Cash
$2.85 Tip
Remainder of New York State$12.50 Cash
$2.50 Tip
$12.90 Cash
$2.60 Tip
$13.30 Cash
$2.70 Tip

Overtime Threshold

Along with increases to the 2024 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 January 1st. These amounts are all higher than the federal Fair Labor Standards Act (FLSA) threshold, which is back down to $684/week after a federal judge enjoined the U.S. DOL’s rule that had initially increased it in July 2024. 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. However, employers must also satisfy the FLSA threshold for most professional employees. Doctors, lawyers, and teachers do not have a salary requirement for exemption.

 

Executive & Administrative Exemption Weekly Salary Threshold Schedule
Location202420252026
NYC, Long Island, & Westchester$1,200.00$1,237.50$1,275.00
Remainder of New York State$1,124.20$1,161.65$1,199.10

Prepare Now for the 2025 New York Minimum Wage

New York employers should review their compensation levels and make necessary changes by January 1, 2025. 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 2025 New York minimum wage rates only last one year in some cases. Companies will have to review this again next year (or sooner).

To keep up on New York and federal wage and hour requirements and other employment law topics, you can sign up for our email newsletter here or follow us on LinkedIn!

2024 New York Employment Law Update Cover Slide

2024 New York Employment Law Update (Webinar Recap)

On May 29, 2024, I presented a complimentary webinar entitled “2024 New York Employment Law Update”. For those who couldn’t attend the live webinar, I’m happy to make it available for you to watch at your convenience.

In the webinar, I discuss:

  • FTC Non-Compete Rule
  • FLSA Overtime Rule
  • New York Labor Law Amendments
  • NYS Freelance Isn’t Free Act

and much more!

Especially in New York, employers must remain constantly vigilant for new restrictions on how they treat their employees. Recent actions at the federal level also have potentially significant implications for New York employers. This webinar includes the latest information on new state laws and federal regulations that affect a wide array of New York workplaces.

Don’t have time to watch the whole webinar right now? Click here to download the slides from the webinar.

Why You Should Watch “2024 New York Employment Law Update”

Have you been waiting to find out what the FTC’s non-compete ban may mean for your business? Still not entirely sure whether the FLSA overtime rule change will affect you? Struggling (like many) to keep track of the latest requirements imposed on New York employers? (And the Freelance Isn’t Free Act even goes beyond employment to cover many independent contractor relationships.)

This webinar will catch you up on these developments and more. Did you know that all New York employers will soon have to provide paid break time to new mothers to express breastmilk at work? In 2025 there will also be a new paid prenatal leave available for pregnant employees. And, New York has finally gotten around to passing a law preventing employers from requiring applicants and employees to provide access to their social media accounts. Make sure you don’t miss out on the facts and tips related to these legal shifts. Now is the time to come into compliance or stay ahead of upcoming obligations.

Don’t Miss Our Future Webinars!

Click here to sign up for the Horton Management Law email newsletter to be among the first to know when registration is open for upcoming programs! Plus, follow us on LinkedIn for updates on important employment law issues.

2024 New York Minimum Wage

2024 New York Minimum Wage

Do you know the 2024 New York minimum wage? Actually, there are different minimum wages for different parts of the state and different industries. Employers must be ready by the end of the year to meet the new requirements that apply to their employees.

The 2024 New York minimum wage rates are shaded in blue in the tables below. Note that the changes take effect on January 1st, not December 31st as was the case with previous increases.

[Follow us on LinkedIn for frequent updates for New York employers.]

Standard New York Minimum Wage

The 2024 New York minimum wage varies by geographic location and sometimes by industry.

For most private employers, the 2024 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).

The chart also shows scheduled minimum wage increases for 2025 and 2026.

General Minimum Wage Rate Schedule
Location2023202420252026
NYC, Long Island, & Westchester$15.00$16.00$16.50$17.00
Remainder of New York State$14.20$15.00$15.50$16.00

* After 2026, future New York minimum wage increases will occur based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region. In other words, the minimum wage will be indexed to inflation.

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

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.

Hospitality Industry Tipped Minimum Wage Rate Schedule (Food Service Workers)
Location2023202420252026
NYC, Long Island, & Westchester$10.00 Cash
$5.00 Tip
$10.65 Cash
$5.35 Tip
$11.00 Cash
$5.50 Tip
$11.35 Cash
$5.65 Tip
Remainder of New York State$9.45 Cash
$4.75 Tip
$10.00 Cash
$5.00 Tip
$10.35 Cash
$5.15 Tip
$10.70 Cash
$5.30 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).

Hospitality Industry Tipped Minimum Wage Rate Schedule (Service Employees)
Location2023202420252026
NYC, Long Island, & Westchester$12.50 Cash
$2.50 Tip
$13.35 Cash
$2.65 Tip
$13.75 Cash
$2.75 Tip
$14.15 Cash
$2.85 Tip
Remainder of New York State$11.85 Cash
$2.35 Tip
$12.50 Cash
$2.50 Tip
$12.90 Cash
$2.60 Tip
$13.30 Cash
$2.70 Tip

Overtime Threshold

Along with increases to the 2024 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. However, employers must also satisfy the FLSA threshold for most professional employees. Doctors, lawyers, and teachers do not have a salary requirement for exemption.

Executive & Administrative Exemption Weekly Salary Threshold Schedule
Location2023202420252026
NYC, Long Island, & Westchester$1,125.00$1,200.00$1,237.50$1,275.00
Remainder of New York State$1,064.25$1,124.20$1,161.65$1,199.10

Prepare Now for the 2024 New York Minimum Wage

New York employers should review their compensation levels and make necessary changes by January 1, 2024. 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 2024 New York minimum wage rates only last one year in some cases. Companies will have to review this again next year (or sooner).

To keep up on New York and federal wage and hour requirements and other employment law topics, you can sign up for our email newsletter here or follow us on LinkedIn!