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. 

1. 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.

Report on New York’s Minimum Wage Increase Scheduled for 2022

2021 NYS DOL Job Seeker Survey PDF

NYS DOL Business Workforce Survey Results PDF

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.

Tompkins County Living Wage Information

2021 Living Wage Report

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.  

Tips and Gratuities Frequently Asked Questions

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.)

Executive & Administrative Exemption Weekly Salary Threshold Schedule
Location	12/31/20	12/31/21
NYC – Large Employers (of 11 or more)	$1,125.00	$1,125.00
NYC – Small Employers (10 or less)	$1,125.00	$1,125.00
Long Island & Westchester	$1,050.00	$1,125.00
Remainder of New York State	$937.50	$990.00

https://www.jdsupra.com/legalnews/2022-new-york-minimum-wage-2293859/

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.