New York Minimum Wage: 2024 and Beyond

New York minimum wage is set through 2026, following recently announced increases.

As a reminder, the state has three separate rates for New York City, Nassau, Suffolk, and Westchester counties, and the remainder of New York State.

Now, following passage of the New York State budget in early May 2023, new rates are set for the coming years.

For reference, between now and the end of 2023, these are the rates:

• New York City – $15
• Nassau, Suffolk, and Westchester counties – $15
• The remainder of New York State – $14.20

Minimum Wage Management. Simplified.

New York Minimum Wage: 2024 and Beyond

An earlier version of a New York Senate bill called for larger increases, with some rates eventually reaching or surpassing the $20 mark.

As passed, however, there are less aggressive increases coming to New York minimum wage. Still, the wages in the state will be fairly high, with rates going up on Jan. 1 each year.

New York City:

• $16 – 2024
• $16.50 – 2025
• $17 – 2026

Nassau, Suffolk, and Westchester Counties:

• $16 – 2024
• $16.50 – 2025
• $17 – 2026

Remainder of New York State:

• $15 – 2024
• $15.50 – 2025
• $16 – 2026

Starting in 2027, state officials will have the regulatory authority to adjust the New York minimum wage rates based on the applicable Consumer Price Index (CPI). But there are conditions under which the rate wouldn’t increase, including a negative CPI figure and poor unemployment numbers.

Latest Updates

New York announced its minimum wage increase for home care aides to $18.55 for New York City, as well as Long Island and Westchester counties, effective Jan. 1, 2024. The remainder of the state will increase to $17.55 at that time.

Managing Minimum Wage Rates

With New York minimum wage set for the coming years, the new law illustrates how rates continue to be on the minds of lawmakers.

With the federal minimum wage unchanged since 2009, more jurisdictions have passed these types of laws over the past several years, especially at the county and city level.

Plus, the latest development is a shift from scheduled rates, which employers can more easily plan for, to indexed minimum wage rates, as will be the case for minimum wage in Oregon in July 2023. And jurisdictions sometimes announce indexed rates only weeks before their effective date, such as Chicago, creating additional challenges for employers that operate across the U.S.

State Minimum Wage Rates: July 1, 2023

Meanwhile, there has also been a rise of industry-specific rates, especially in places like California (notably for hotel and healthcare employees), which adds another layer to the employment law compliance puzzle.

Plus, these laws can be more complicated than simply knowing the rates. For example, Cook County, Ill., allows cities to opt in or out of its ordinance. Employers that operate across the U.S. must constantly monitor new legislation to stay on top of the changes.

Additionally, with the Fight for $15 shifting to the Fight for $20 as the new minimum wage push, these laws take on even more importance.

And in case you’re an employer with locations north of the border, there’s also Canada minimum wage to present challenges.

Guide: County and City Minimum Wage Rates

Conclusion

Employers with locations in New York should prepare for the upcoming minimum wage changes, as well as any potential industry-specific rates that may apply. For example, New York City recently set a minimum wage food delivery workers, $17.96 per hour before tips.

As a reminder, the new rates are set from 2024 through 2026.

New York City:

• $16 – 2024
• $16.50 – 2025
• $17 – 2026

Nassau, Suffolk, and Westchester Counties:

• $16 – 2024
• $16.50 – 2025
• $17 – 2026

Remainder of New York State:

• $15 – 2024
• $15.50 – 2025
• $16 – 2026

This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.