REMINDER: NEW YORK STATE WAGE INCREASES AS OF DECEMBER 31, 2018

As the end of the year is approaching, it is important to remind New York State employers and employees of the increased minimum wages that affect both hourly and salaried employees.

For hourly, non-exempt workers, please see the below chart for basic hourly minimum wage increases that go into effect as of December 31, 2018:

NYC – Large Employers

(11 or more employee)

NYC – Small Employers (10 or less employees) Employees in Nassau, Suffolk and Westchester Counties Workers in the Remainder of New York State (“Upstate”)
$15.00

(up from $13.00)

$13.50

(up from $12.00)

$12.00

(up from $11.00)

$11.10

(up from $10.40)

There are additional increases scheduled for all but NYC – Large Employers in the upcoming years. To the extent you or your workforce are paying basic minimum wage, it is important to make sure that the increased wages are reflected as of December 31, 2018.

For employers and employees in the Hospitality Industry, such as restaurants, the “tip credit” rate is also being increased as of December 31, 2018, as follows:

NYC – Large Employers

(11 or more employee)

NYC – Small Employers (10 or less employees) Employees in Nassau, Suffolk and Westchester Counties Workers in the Remainder of New York State (“Upstate”)
$10.00

Tip Credit: $5.00

$9.00

Tip Credit: $4.50

$8.00

Tip Credit: $4.00

$7.50

Tip Credit: $3.60

The “tip credit” rules can be difficult to follow, so it is important to track this information to ensure that tipped employees are receiving at least basic minimum wage, inclusive of tips, when calculating wages.

As well, there is an increase in the “fast food” workers minimum wage, which is as follows:

New York City New York State Outside New York City
$15.00 $12.75

More information about the Hospitality Industry – including fast foot establishments, can be found here.

Finally, there are increases in the minimum salary threshold that must be met for exempt employees. As of December 31, 2018, the following minimum salaries must be paid for exempt administrative and executive employees:

NYC – Large Employers

(11 or more employee)

NYC – Small Employers (10 or less employees) Employees in Nassau, Suffolk and Westchester Counties Workers in the Remainder of New York State (“Upstate”)
$1,125.00 per week

($58,500 annually)

$1,012.50 per week

($56,250 annually)

$900.00 per week

($46,800 annually)

$832.00 per week

($43,264 annually)

With the upcoming changes, it is important to update policies and pay practices to stay in compliance. For questions as an employer or employee in New York, please contact the Law Offices of Yale Pollack, P.C. at (516) 634-6340 or ypollack@yalepollacklaw.com

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