Minimum Wage Increase Takes Effect December 31st

As I’m sure you know another phase of the state’s multi-year march to a $15 minimum wage takes effect on December 31st. The annual increase in the minimum wage also triggers a review of the cash wage for tipped food service workers to determine if it increases (varies across New York State). It also impacts meal credit and uniform allowances. The chart below shows these various increases, broken down geographically.

Basic Minimum Hourly Rate (per hour)

NYC – Large Employers (11 or more employees)                                                      $15.00

NYC – Small Employers (10 or less employees)                                                        $15.00

Long Island & Westchester                                                                                            $13.00

Rest of NYS                                                                                                                       $11.80

 

Cash Wage for Tipped Foodservice Workers

NYC – Large Employers (11 or more employees)                                                     $10.00

NYC – Small Employers (10 or less employees)                                                       $10.00

Long Island & Westchester                                                                                           $  8.65

Rest of NYS                                                                                                                      $  7.85

 

Uniform Maintenance Allowances

Low (20 or fewer hours per week)

NYC – Large Employers (11 or more employees)                                                    $  8.90

NYC – Small Employers (10 or less employees)                                                      $  8.90

Long Island & Westchester                                                                                          $  7.75

Rest of NYS                                                                                                                     $  7.00

 

Medium (over 20 up to 30 hours per week)

NYC – Large Employers (11 or more employees)                                                   $14.75

NYC – Small Employers (10 or less employees)                                                     $14.76

Long Island & Westchester                                                                                         $12.80

Rest of NYS                                                                                                                    $11.60

 

High (over 30 hours per week)

NYC – Large Employers (11 or more employees)                                                  $18.65

NYC – Small Employers (10 or less employees)                                                    $18.65

Long Island & Westchester                                                                                        $16.20

Rest of NYS                                                                                                                   $14.70

 

Meal Credits (Food Service Workers)

NYC – Large Employers (11 or more employees)                                                 $  3.60

NYC – Small Employers (10 or less employees)                                                   $  3.60

Long Island & Westchester                                                                                       $  3.25

Rest of NYS                                                                                                                  $  3.00

 

The new rates for minimum wage, cash wage, allowances and credits take effect on December 31st and employees need to be paid at these higher rates starting on December 31st –   not on January 1st (a common error). In addition, any hourly employees that have their rate of pay changed as a result of the implementation of the new minimum wage must be provided with an updated Notice and Acknowledgement of Pay Rate & Payday (DOL Form LS 54).