Minimum Wage Rates​

Dec. 31, 2020

·     New York City: $15 per hour

·     Long Island and Westchester: $14 per hour

·     Remainder of the state: $12.50 per hour

Dec. 31, 2021

·     New York City, Long Island and Westchester: $15 per hour

·     Remainder of the state: $13.20 per hour

On Sept. 22, 2021, the New York Department of Labor (NYDOL) announced the state’s two minimum wage rates will increase on Dec. 31, 2021.

The rate for Nassau, Suffolk and Westchester counties will increase as scheduled to $15 per hour. The rate for the remainder of the state will increase to $13.20 per hour.

As a reminder, the minimum wage rate for the city of New York and fast food workers throughout the state is $15 per hour.

Tipped Employees

New York state law allows employers in all industries (except for building service) to satisfy the minimum wage by combining a “cash wage” paid by the employer with a credit or allowance for tips that the employee receives from customers.

The 2022 minimum wage does not change the amount of tip credit. Employers must continue to ensure that their employees’ cash wages and tips enable them to receive wages at or above the applicable minimum wage rate.

Cash wages and tip credits in New York state depend on location and industry. Employers should review the information published by the NYDOL for more information.

Impact on Employers

Employers in New York should prepare their payroll processes and procedures to ensure compliance with upcoming state minimum wage requirements by Jan. 1, 2022.

This Legal Update is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. © 2021 Zywave, Inc. All rights reserved.