Reminder: New Minimum Salary and Minimum Wage Rates are in Effect

The New York State Department of Labor (NYSDOL) has adopted proposed regulations to align the state’s industry-specific wage requirements with the January 1, 2024, increases in the state minimum wage.

In May 2023, Governor Kathy Hochul signed into law a bill to increase New York’s minimum wage again (to $17.00 an hour by 2026). The first increase (to $16.00 an hour) is effective on January 1, 2024, and subsequent changes will take effect on January 1, 2025, and January 1, 2026.

As many of the industry-specific wage requirements in the New York Wage Orders are based on the minimum wage, NYSDOL has adopted regulations to adjust the New York Wage Orders on various issues, including credits against the minimum wage and the minimum salary threshold for certain overtime exempt employees.

Changes to Home Care Worker Minimum Wage

The minimum wage for home care workers has also been updated, effective January 1, 2024.  The DOL has updated its Home Care Worker Minimum Wage poster, which can be found here

Changes to Minimum Salary Requirements for Overtime Exempt Employees

To be an exempt executive or administrative employee under New York law, the employee must be paid on a salary basis and meet the salary level threshold, in addition to meeting the duties prong of the exemption. This salary threshold is set by New York Department of Labor as being 75 times the applicable minimum wage. 

The minimum salary amounts for administrative and exempt employees, starting January 1, 2024 are:

For New York City, Westchester, and Long Island:

  • 2024 – $1,200.00/week ($62,400.00 per year)
  • 2025 – $1,237.50/week ($64,350.00 per year)
  • 2026 – $1,275.00/week ($66,300.00 per year)

For the rest of New York:

  • 2024 – $1,124.20/week ($58,458.40 per year)
  • 2025 – $1,161.65/week ($60,405.80 per year)
  • 2026 – $1,199.10/week ($62,353.20 per year)

Changes Affecting Food Service Workers Under Hospitality Wage Order

A “food service worker” is an employee other than a delivery employee who is primarily engaged in the serving of food or beverages to guests, patrons, or customers and who regularly receives tips from such guests, patrons, or customers.  The modified minimum cash wage, and overtime rates, and tip credit for such employees are:

For New York City, Westchester, and Long Island:

 Eff. 1/1/2024   Eff. 1/1/2025   Eff. 1/1/2026
Minimum Wage$16.00$16.50$17.00
Cash Wage$10.65$11.00$11.35
Overtime Cash Wage   $18.65$19.25$19.85
Tip Credit$5.35$5.50$5.65

For the rest of New York:

 Eff. 1/1/2024   Eff. 1/1/2025   Eff. 1/1/2026
Minimum Wage$15.00$15.50$16.00
Cash Wage$10.00$10.35$10.70
Overtime Cash Wage   $17.50$18.10$18.70
Tip Credit$5.00$5.15$5.30

Changes Affecting Service Employees Under Hospitality Wage Order

A service employee is an employee other than a food service worker who receives tips at or above a required “tip threshold” rate of tip compensation.  The modified minimum cash wage, overtime rates, tip credit, and tip threshold for such employees are:

For New York City, Westchester, and Long Island:

 Eff. 1/1/2024   Eff. 1/1/2025   Eff. 1/1/2026
Minimum Wage$16.00$16.50$17.00
Cash Wage$13.35$13.75$14.15
Overtime Cash Wage   $21.35$22.00$22.65
Tip Credit$2.65$2.75$2.85
Tip Credit Threshold  $3.45$3.55$3.65

 For the rest of New York:

 Eff. 1/1/2024   Eff. 1/1/2025   Eff. 1/1/2026
Minimum Wage$15.00$15.50$16.00
Cash Wage$12.50$12.90$13.30
Overtime Cash Wage   $20.00$20.90$21.30
Tip Credit$2.50$2.60$2.70
Tip Credit Threshold   $3.20$3.30$3.40

Changes to Meal Credit

Meals furnished by an employer to an employee may be considered part of an employee’s wages under various wage orders. Thus, some employers take a meal credit against an employee’s wages for each shift that the employee is furnished a meal.

For New York City, Westchester, and Long Island:

 Eff. 1/1/2024   Eff. 1/1/2025   Eff. 1/1/2026
Food Service Employees   $3.85$3.95$4.05
Service Employees  $4.45$4.60$4.75
Non-Service Employees  $5.50$5.65$5.80

 For the rest of New York:

 Eff. 1/1/2024   Eff. 1/1/2025   Eff. 1/1/2026
Food Service Employees   $3.80$3.95$4.10
Service Employees  $4.10$4.25$4.40
Non-Service Employees  $5.20$5.35$5.50

Changes to Uniform Allowance

Under New York law, if an employer requires an employee to wear a certain uniform, the employer can launder and maintain the uniform or pay the employee Uniform Maintenance Pay. Uniform Maintenance Pay is paid weekly and is dependent on the hours worked by the employee during the week. Under the Miscellaneous Wage Order, this allowance can be set off by monies paid in excess of minimum wage. Calculations need to be reviewed with the increased minimum wage to ensure any excess covers the allowance.

For New York City, Westchester, and Long Island:

 Eff. 1/1/2024   Eff. 1/1/2025   Eff. 1/1/2026
Work >30 Hours$19.90$20.50$21.10
Work 20-30 Hours   $15.75$16.25$16.75
Work <20 Hours $9.50$9.80$10.10

For the rest of New York:

 Eff. 1/1/2024   Eff. 1/1/2025   Eff. 1/1/2026
Work >30 Hours$18.65$19.25$19.85
Work 20-30 Hours   $14.80$15.30$15.80
Work <20 Hours  $8.95$9.25$9.55

If you have any questions about these rates or compliance with these rates, please be sure to contact your Forework account managers.