Update Applicable to:
All New York employers regardless of size. In previous years, the minimum wage was tied to an employer’s number of employees, but that provision has now been removed.
New York Governor Kathy Hochul announced an agreement with legislative leaders for the FY2024 New York State Budget on April 27, 2023. Notably, the deal includes legislation that would increase the state minimum wage rate beginning January 1, 2024, for the next three years and index the minimum wage to the consumer price index thereafter.
What are the details?
The Fiscal Year 2024 New York State Budget (the “Budget”) includes a multi-year plan to increase the State’s minimum wage. The Budget legislation signed by Governor Hochul on May 3, 2023, provides for increases to the minimum wage rate as follows:
|Effective Date||New York City, Long Island, and Westchester||Remainder of New York State|
|January 1, 2024||$16.00||$15.00|
|January 1, 2025||$16.50||$15.50|
|January 1, 2026||$17.00||$16.00|
The minimum wage in New York is currently split into two state regions:
- “Downstate,” which includes New York City, Westchester, Nassau and Suffolk counties, and
- “The remainder of the state,” which includes the remainder of New York State and is often referred to as the “Upstate minimum wage rate.”
This legislation, unlike prior New York minimum wage increases, does not distinguish rates based upon employer size or downstate county. As of January 1, 2027, the minimum wage will be based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (“CPI-W”) for the Northeast Region. The budget legislation clarifies that the State will suspend its minimum wage increases in the event of certain economic conditions.
There will be no change to exempt status thresholds. Thus, the exempt status thresholds remain as follows:
|Size/Location of Employer||Salary Threshold|
|New York City, 11 or more employees||$1,125 per week ($58,500 per year)|
|New York City, 10 or fewer employees||$1,125 per week ($58,500 per year)|
|Long Island and Westchester, regardless of size of employer||$1,125 per week ($58,500 per year)|
|Remainder of the New York State, regardless of employer size||$1,064.25 per week ($55,341 per year)|
For more information, please see the links below:
What do employers need to do?
Employers will need to review the above links and make any necessary budgetary preparations and adjustments in order to ensure compliance with the new increases as of the start of a payroll period that includes January 1, 2024.
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