Minimum Wage Increases

Effective December 31, 2021, New York’s minimum wage will increase for many employers. It should be noted that the increases are based on the employer’s location.

The minimum wage for employees other than fast food employees in New York. It will gradually increase to $15 according to the following schedule:

Starting on December 31, 2021, the minimum wage for employees in the remainder of New York will be increased by a percentage determined by the Director of the New York Division of Budget (NYDOB) in consultation with the New York State Department of Labor based on indices including, but not limited to:

• The rate of inflation for the most recent 12-month period ending June of that year based on the Consumer Price Index for all Urban Consumers on a national and seasonally unadjusted basis (CPI-U) or a successor index;
• The rate of state personal income growth for the prior calendar year, or a successor index, published by the Federal Bureau of Economic Analysis;
• Wage growth; or
• If it is greater, a federal minimum wage.

These adjustments will take place on December 31 of every year until the minimum wage for employees in the remainder of New York reaches $15.00.

Tip Credit

Employers in the hospitality industry may consider an employee’s tips as part of the minimum wage, as long as certain conditions are met. No tip credit is available for farm workers, employees in the building service industry or employees in nonprofit institutions.

A tip credit for employers in miscellaneous industries and occupations was repealed, effective December 31, 2020.

Employers that fall under the Minimum Wage Order for the Hospitality Industry may consider an employee’s tips as part of the minimum wage as long as the employee:

• Receives a minimum amount of tips each week that averages out above an hourly tip threshold (see Maximum Tip Credit and Minimum Tip Threshold below);
• Has been notified in writing about the tip credit; and
• Spends no more than two hours or 20 percent of his or her shift, whichever is less, performing non-tipped work.

Tip sharing and tip pooling is allowed in the hospitality industry under certain conditions.

Employers in Nassau, Suffolk, and Westchester counties will see an increase in the minimum cash wage and maximum tip credit for their employees as of December 31, 2021.