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  • Writer's pictureRyan T. Biesenbach

Wage Increases are Coming in 2024

Earlier this year, the New York State Legislature passed, and Governor Hochul signed, a minimum wage increase that will take effect beginning on January 1, 2024. These statutory increases – which will impact all employers in New York State - are as follows:

Location

Minimum Wage as of 12/31/2022

Minimum Wage as of 1/1/2024

Tipped Service Employees as of 12/31/2022

Tipped Food Service Workers as of 12/31/2022

New York City

$15.00

$16.00

$12.50 Cash Wage

$2.50 Tip Credit

$10.00 Cash Wage

$5.00 Tip Credit

Long Island & Westchester

$15.00

$16.00

$12.50 Cash Wage $2.50 Tip Credit

$10.00 Cash Wage $5.00 Tip Credit

Remainder of New York State

$14.20

$15.00

$11.85 Cash Wage

$2.35 Tip Credit

$9.45 Cash Wage

$4.75 Tip Credit

While nothing has yet been announced regarding new minimum wages for tipped employees, employers should note that previously required cash wages and tip credits were equal to the regular minimum wage in each of the geographic locations identified above. It is anticipated that this will be the same for 2024.


The minimum wage will continue to increase by $0.50 each year in 2025 and 2026. Beginning in 2027, any increases to the minimum wage will be determined by the U.S. Department of Labor Consumer Price Index and published by the New York Department of Labor (“NYSDOL”) on October 1 each year for the rate to take effect January 1 of the following year. To that end, there will be no increase for a given year if the inflation index is negative, if New York State’s unemployment rate increases by half a percentage point from its low during the preceding year, or if the number of total non-farm state employees decreases over the prior six months. 


Last week, the NYSDOL published proposed regulations that are required to accompany the minimum wage increases. These proposed regulations also contained new minimum salary requirements for qualifying employees exempt from the New York Labor Law (“NYLL”) minimum wage and overtime requirements under an Executive or Administrative exemption. The proposed hourly, weekly, and yearly salary thresholds necessary to meet the Executive and Administrative exemptions are as follows:

Location

Salary Requirement as of 1/1/2024

Salary Requirement as of 1/1/2025

Salary Requirement as of 1/1/2026

Salary Requirement as of 1/1/2027

New York City

$1,200/week $62,400/year

$1,237.50/week $64,350/year

$1,275/week

$66,300/year

TBD

Long Island & Westchester

$1,200/week $62,400/year

$1,237.50/week $64,350/year

$1,275/week $66,300/year

TBD

Remainder of New York State

$1,125/week $58,500/year

$1,162.50/week $60,450/year

$1,200/week $62,400/year

TBD

Although these proposed regulations by the NYSDOL are subject to a comment period, they are likely to be finalized without significant changes. Following the comment period, the new salary thresholds would take effect with the previously finalized minimum wage raises on January 1, 2024.


Further, effective March 13, 2024, there are new minimum salary requirements for clerical and other exempt employees under Article 6 of the NYLL. Pursuant to the new requirement, the minimum salary for covered employees to be exempt from weekly pay requirements – essentially, allowing an employee to be accurately classified as a non-manual worker – will increase from $900/week (or $46,800/year) to $1,300/week (or $67,600/year).


If you have any questions regarding this article, please contact the Underberg & Kessler attorney who regularly handles your legal matters, or Ryan T. Biesenbach at (585) 258-2865 or rbiesenbach@underbergkessler.com.

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