Minimum Wage Increase Included in New State Budget
The final state budget agreement includes increases in the minimum wage over the next three years after which the minimum wage will be indexed to inflation. It also includes off-ramps that could scuttle minimum wage increases during years when consumer prices fall, unemployment spikes, or the state loses jobs.
The new minimum wage schedule is as follows:
New York City Employers Regardless of Size:
$16.00 on and after January 1, 2024
$16.50 on and after January 1, 2025
$17.00 on and after January 1, 2026
Nassau, Suffolk, and Westchester County Employers:
$16.00 on and after January 1, 2024
$16.50 on and after January 1, 2025
$17.00 on and after January 1, 2026
Remainder of the State:
$15.00 on and after January 1, 2024
$15.50 on and after January 1, 2025
$16.00 on and after January 1, 2026
Beginning on January 1, 2027, the minimum wage will automatically be modified annually by the Commissioner of Labor based on the Consumer Price Index. The new law does provide several “off ramps” – economic circumstances the state might find itself in that would prevent a minimum wage increase from occurring. The minimum wage would not change:
- if the rate of the index is negative
- if the three-month moving average of the seasonally adjusted NYS unemployment rate for the period ending July 31st rises by 0.5% or more relative to its low during the previous 12 months, or
- if the seasonally adjusted total non-farm employment for New York state in July decreased from the seasonally adjusted total non-farm employment for New York state in January.
Minimum wage increases can only be prevented for two consecutive years.
The budget makes no changes in the law for tipped foodservice workers. Under the Labor Law, these workers have a minimum cash wage equal to two-thirds of the minimum wage so the cash wage for tipped foodservice workers will increase proportionately as the minimum wage increases each year.