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Understanding New York's Minimum Wage Laws

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For business owners in New York, being up to date on New York’s minimum wage can help bolster the reputation of the business outside and increase morale inside. These laws and regulations are constantly shifting and changing to reflect the environment around them. The state and federal governments are always aiming to match the minimum wage to the costs of living.

Therefore, as the economy changes, so will the expectations of business owners. For in-depth advisory on minimum wage law, consider speaking with a knowledgeable New York employer defense attorney from Schwab & Gasparini at (315) 422-1333 in Syracuse, (518) 591-4664 in Albany, (914) 304-4353 in White Plains, or (914) 304-4353 in Hudson Valley.

Minimum Wage in the United States

Minimum wage in the United States operates on a tiered system, with the federal minimum wage providing the baseline minimum and the state and municipal levels building on top of that.

Federal Minimum Wage

The federal government has set forth a baseline minimum wage for the entire country, as decreed by the Fair Labor Standards Act. In 2009, the federal minimum wage was adjusted to $7.25 per hour, and it has not been adjusted since.

State Minimum Wage

According to the National Conference of State Legislatures, all but five states in the country have instituted state minimum wages. Some of these are the same as the federal minimum wage and some are higher, but each is designed to reflect the cost of living and protect employee rights and quality of life.

Municipal Minimum Wage

However, there is an additional third tier of the minimum wage system. In certain unique circumstances, cities and counties will enact minimum wage laws of their own to reflect the economic climate of the area. These municipal-level minimum wages are growing in popularity, especially in metropolitan areas with high costs of living.

What is the Minimum Wage in New York?

New York’s minimum wage ranges from $15 to $16 depending on the location of the business and the type of employee, according to the New York State Department of Labor. The state minimum wage is $15 per hour, however the municipalities of New York City, Long Island, and Westchester have a higher rate of $16 per hour.

However, this does not necessarily apply to tipped employees. The tipping system provides a mode for employees to earn higher wages based on their service, and as such their base hourly rates are lower, so long as their tip credit brings their total wage above the minimum.

The minimum wage for tipped employees in New York state is $10 cash wage and $5 minimum tip credit. In New York City, Long Island, and Westchester, the minimum wage for tipped employees is $10.65 cash wage and $5.35 tip credit. If the tip credit received by the employee does not meet the standard minimum wage requirements, employers may be required to pay that employee the base minimum wage for hourly workers.

2024 New York Minimum Wage Increases

Another important detail for business owners to be aware of is the recent increase in New York’s minimum wage. Before January 1st, 2024, the minimum wage was $15 in certain metropolitan areas and $14.20 in the rest of the state. However, the state government increased this at the beginning of the year to the rates listed above.

To learn more about the changing landscape of New York’s minimum wage laws, consider speaking with an experienced business attorney at Schwab and Gasparini.

Rates and Complications for Different Kinds of Employees

Employers of different business types should also consider what type of employees they have on their payroll, as several groups fall under certain exemptions to the standard minimum wage.

Tipped Hourly Workers

According to federal law, tipped employees must be paid at least $2.13 per hour and receive enough tip credit to bring their total wages above the minimum. In New York, however, the cash wage for tipped workers is much higher, generally falling between $10 and $10.65 depending on the location. So long as they are paid the proper cash wage and receive enough tip credit, these tipped workers are allowed to receive below minimum wage.

Salaried Employees

While some may not expect it, there is also a minimum wage for salaried workers, though it naturally looks different than hourly employees. Depending on the location of the business, this minimum salary threshold may be anywhere between $1,100 and $1,300 per week. In yearly salary terms, this would look like $57,200 to $67,600 per year.

Exemptions

There are also several notable exceptions to New York’s minimum wage laws. The most obvious exception is tipped workers, who do not need to receive the minimum cash wage that other hourly employees do. However, there is also a lower minimum wage for farm workers in New York. Additionally, home carers and babysitters may also be exempt from traditional minimum wage laws.

Additional Wage Laws

In New York, there are more than just minimum wage laws to keep in mind. There are many additional wage laws that may apply to businesses with employees. Understanding these can be key to avoiding many varying wage and hour violations.

First and foremost of these other laws is overtime pay. In the state of New York, non-exempt hourly workers must be paid time and a half for any hours worked over the usual 40 hour workweek. Hourly workers must also be given their appropriate meal and rest breaks.

In terms of pay, New York also has equal pay and prevailing pay guidelines that employers should be aware of. In accordance with the federal Equal Pay Act (EPA), employers in New York are prohibited from paying employees of different sexes different wages for the same work. Employers on public work projects are also expected to pay their employees the prevailing wage for the field of work.

Compliance

When it comes to compliance, there are several steps that employers should be aware of to protect their business interests. These best practices begin with a familiarity with New York’s minimum wage laws. Knowing what is expected of employees and employers can help to keep businesses running smoothly.

In addition to that, having a robust payroll documentation system will help to prevent confusion. Classifying employees correctly, tracking overtime hours, and keeping track of meal and rest breaks will all help to keep businesses in compliance with New York’s standards.

Contact a New York Business Attorney Today

The business landscape in New York is constantly changing. Keeping up to date with new wage laws, ensuring that employees are in compliance, and setting up payroll systems can be difficult. To learn more about the different facets of New York’s minimum wage, consider speaking with an experienced business attorney from Schwab & Gasparini by calling (315) 422-1333 in Syracuse, (518) 591-4664 in Albany, (914) 304-4353 in White Plains, or (914) 304-4353 in Hudson Valley.

Wed Aug 7 2024, 7:45am