The NYS Department of Labor is proceeding with scheduled increases to the state’s minimum wage effective December 31, 2022. While there is no change for New York City employers, Long Island, or Westchester employers, the remainder of upstate New York will see increases. As you know, this will also impact the minimum salary levels to be paid to Executive and Administrative exempt employees. The new minimum wage and minimum salary levels can be found below. Things to keep in mind:
- A new poster. You will be required to post a new minimum wage poster. You will be able to find the new poster here. Remember, there could be corresponding increases in the tipped wage and wages paid for fast food employees in your area.
- The minimum salary level to be considered exempt from overtime under NYS law for Executive and Administrative employees is tied to the minimum wage and may also be increasing for your industry and area. Remember, there is no NYS minimum salary level for Professional exemptions. For Professional employees you would be subject to the Federal minimum salary level.
*Future increases will be based on an indexed schedule to be set by the Director of the Division of the Budget in consultation with the Department of Labor following an annual review of the impact.
| Minimum Salary Level – NYS Executive and Administrative Exemptions |
| Location Effective 12/31/2022 NYC-Large Employers (11 or more) $1,125/week ($58,500 annualized) NYC-Small Employers (10 or less) $1,125/week ($58,500 annualized) Long Island & Westchester $1,125/week ($58,500 annualized) Remainder of the NY State $1,065/week ($55,380 annualized) |
NYS Reduces Overtime Threshold for Farm Workers to 40 hours Per Week
New York State Department of Labor (NYSDOL) Commissioner Roberta Reardon issued an order accepting the recommendation of the Farm Laborers Wage Board to lower the current 60-hour threshold for overtime pay to 40 hours per week by January 1, 2032, allowing 10 years to phase in the new threshold. NYSDOL will now be undergoing a rule making process which will include a 60-day public comment period. This applies to certain agricultural employers and employees only.
Under proposed language, an employer shall pay an employee for overtime at a wage rate of one- and one-half times the employee’s regular rate of pay for hours worked in excess of the following number of hours in one workweek:
(a) 60 hours on or after January 1, 2020;
(b) 56 hours on or after January 1, 2024;
(c) 52 hours on or after January 1, 2026;
(d) 48 hours on or after January 1, 2028;
(e) 44 hours on or after January 1, 2030;
(f) 40 hours on or after January 1, 2032.
Minimum Wage for Tipped Employees in the Hospitality Industry
New York State has separate minimum wage rules for employees in the hospitality industry. These rules apply to businesses running a restaurant or hotel.
The minimum wage rates for most non-tipped employees in the hospitality industry are set as per the schedule above. However, employers may count a portion of certain tipped employees’ gratuities toward the minimum wage requirements. This is known as a “tip credit.”
New York State has two separate cash wage and tip credit schedules for tipped hospitality employees who qualify as “food service workers” and “service employees.”
Food Service Workers
A food service worker is any employee who is primarily engaged in serving food or beverages to guests, patrons, or customers in the hospitality industry who regularly receive tips. This includes wait staff, bartenders, captains, and busing personnel. It does not include delivery workers.
| Hospitality Industry Tipped Minimum Wage Rate Schedule (Food Service Workers) | ||
| Location | 12/31/21 | 12/31/22 |
| 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 | $10.00 Cash $5.00 Tip | $10.00 Cash $5.00 Tip |
| Remainder of New York State | $8.80 Cash $4.40 Tip | $9.45 Cash $4.75 Tip |
Service Employees
The next schedule applies to other service employees. A service employee is one who is not a food service worker or fast food employee who customarily receives tips above an applicable tip threshold (which also follows schedules, not shown here).
| Hospitality Industry Tipped Minimum Wage Rate Schedule (Service Employees) | ||
| Location | 12/31/21 | 12/31/22 |
| 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 | $12.50 Cash $2.50 Tip | $12.50 Cash $2.50 Tip |
| Remainder of New York State | $11.00 Cash $2.20 Tip | $11.85 Cash $2.35 Tip |
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.
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