2022 New York State Minimum Wage, Tip Credit and Exempt Salary Changes
On Sept. 22, 2021, the New York State Division of the Budget issued its report on the minimum wage rates scheduled to take effect on Dec. 31, 2021. Nassau, Suffolk, and Westchester counties will now join New York City and large fast-food companies with a minimum wage of $15.00 per hour, which is an increase from the current rate of $14.00 per hour. For companies upstate (outside of fast food), the minimum wage will increase to $13.20, which is an increase from $12.50 per hour.
The minimum wage rise to $15 in Nassau, Suffolk, and Westchester counties in 2022, joining New York City and large fast-food firms statewide (see Table 1 link below) and,
The Upstate minimum wage rise annually by the sum of the annual growth rates for the Consumer Price Index for all Urban Wage Earners and Clerical Workers and labor productivity, as defined by real output per hour of all persons in the nonfarm business sector, where annual growth is measured for the period ending in June of the prior calendar year. This rule implies a minimum wage of $13.20 for the Upstate area for the 2022 calendar year.
Minimum Wage for Fast Food Employees The minimum wage for fast food employees working outside of New York City will increase to $14.50 per hour. The final scheduled increase to $15.00 per hour will take effect on July 1, 2021.
Tipped Employee Minimum Cash Wage (2021 Information) The minimum cash wage for tipped employees will increase as follows:
Hospitality Industry Tipped Minimum Wage Rate Schedule (Food Service Workers)
Location
12/31/20
12/31/21
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
$9.35 Cash $4.65 Tip
$10.00 Cash$5.00 Tip
Remainder of New York State
$8.35 Cash $4.15 Tip
$8.35 Cash$4.15 Tip
Hospitality Industry Tipped Minimum Wage Rate Schedule (Service Employees)
Location
12/31/20
12/31/21
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
$11.65 Cash $2.35 Tip
$12.50 Cash$2.50 Tip
Remainder of New York State
$10.40 Cash $2.10 Tip
$10.40 Cash$2.10 Tip
Tip Credit Eliminated in Miscellaneous Industries Employers of employees covered by the Minimum Wage Order for Miscellaneous Industries won’t be able to take a tip credit as of December 31, 2020.
Exempt Administrative and Executive Minimum Salaries The minimum salary for exempt executive and administrative employees in New York will increase as follows:
Nassau, Suffolk, and Westchester counties: $1,050 per week, which equals $54,600 per year.
The rest of the state outside New York City: $937.50 per week, which equals $48,750 per year.
(The minimum in New York City previously increased to $1,125 per week.)
Now is the opportunity to review payrates and job descriptions. Is the position truly an exempt executive or administrative position? Ensure that job duties align with requirements under the Fair Labor Standards Act. I am happy to work with any organization to determine exempt vs. non-exempt duties and responsibilities. Continue to monitor for any significant changes at the federal level in 2021-2022 as well, minimum wage has not been increased federally since July 2009.
Published by Mathew W. Burr, MJ-LEL, MBA, MHRIR, GPHR, SHRM-SCP, SPHR, CPHR-INT, Chartered CIPD
Mathew W. Burr, MJ-LEL, MBA, MHRIR, GPHR, SHRM-SCP, SPHR, CPHR-INT, Chartered MCIPD
Lean Six Sigma Black Belt
ABOUT:
Matthew Burr has over 18-years of experience working in the human resources field, starting his career as an Industrial Relations Intern at Kennedy Valve Manufacturing to most recently founding and managing a human resource consulting company; Burr Consulting, LLC, Talentscape, LLC and Co-Owner of Labor Love, a Labor, and Employment Law poster printing company. Prior to founding the consulting firm, the majority of his career was heavy industry manufacturing and healthcare. He specializes in compliance auditing, training labor and employment law, conflict resolution, performance management, labor, and employment relations. Matthew has a generalist background in HR and operations, while providing strategic HR and operational solutions to his clients, focusing on small and medium sized organizations. He works as an Adjunct at Alfred State University, Tompkins Cortland Community College, and Montgomery Community College. He successfully designed an HR Concentration in the business management major that aligned with both SHRM and HRCI certifications, providing opportunities for students to sit for both the SHRM-CP and aPHR certifications upon completion of the degree, concentration, and internship hours as an Assistant Professor of Management at Elmira College (Retired January 2022). Matthew is also the SHRM Certification Exam Instructor, with a current pass rate of 92% on the SHRM-SCP and 83% pass rate on the SHRM-CP and a combined 88% on both exams over a 7-year period of instructing the course (Elmira College, Collin College & The College of St. Rose). Matthew works as a trainer at Tompkins Cortland Community College, Corning Community College, Broome Community College, and HR Instructor for Certification Preparation for the Human Resource Certification Institute (HRCI). He also acts as an On-Call Mediator and Factfinder through the Public Employment Relations Board in New York State, working with public sector employers and labor unions.
PUBLICATIONS:
Matthew has over 70+ publications including, American Bar Association (ABA) Experience Magazine, Cornell HR Review, Business Insider, New York State Bar Association (NYSBA), PayScale, Society of Human Resource Management (SHRM), and Expert 360 (in Australia). In early 2017, he published his first book, “$74,000 in 24 Months: How I killed my student loans (and you can too!),” proceeded by his second book, which was published in January 2021, “Slay the Student Loan Dragon: Tips and Tricks on How to Conquer the Student Loan Game” and his most recent book, “Unbox Your HR Career” in July 2023.
VOLUNTEER WORK:
Matthew is currently the New York State Society of Human Resource Management (NYSSHRM) District-Director.
EDUCATION & TRAINING:
Additional Training & Development:
SHRM Workplace Coaching and Mentoring Recertification Program, 2020
SHRM Foundation Employing Abilities @Work Certificate, 2020
SHRM Foundation Veterans at Work Certificate Program, 2018
Delta County Chamber of Commerce: Delta Force Leadership Program, 2013
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Matthew was featured on CNN Money, Fast Company, Fits Small Business, Fox News, Magnify Money, Monster.com, My Twin Tiers, Namely, Student Loan Hero, Smart Sheet and CEO Blog Nation, Human Resource Certification Institute (HRCI), Society of Human Resource Management (SHRM).
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