New York State $15 Minimum Wage and Paid Family Leave

Meet New York’s new $15 minimum wage and 12-week paid family leave law, which is the longest allowed leave in the U.S.

As part of New York’s 2016-2017 budget approval process, Governor Andrew Cuomo signed two pieces of legislation affecting employers: a minimum wage increase and paid family leave. Collectively, the dual-track legislation was packaged as Victory for New York Families.

New York State Minimum Wage Increase to $15

Similar to the Oregon minimum wage geographical tier, New York’s minimum wage rate depends on the geographic location of the workplace, the size of the employer’s workforce, and the calendar.

* See below for list of cities and towns covered by new minimum wage schedule.

* The Director of the Division of Budget will determine a schedule of additional rate increases that lead to the $15.00 per hour target rate.

Adding another wrinkle to this story is the separate fast food worker minimum wage schedule that leads New York City fast food workers to the $15.00 per hour minimum wage by December 31, 2018 and for the rest of the state by July 1, 2021.

New York State Paid Family Leave

Workers will be eligible for 12 weeks of paid family leave in 2018. The time may be used for caring for family members during a serious health condition or to support the worker’s family when a member is called to active military service. Workers must be employed for six months before being eligible to participate.

As with the minimum wage increase, New York is staging benefit increases, beginning with 50 percent of an employee’s average weekly wage, capped to 50 percent of the statewide average weekly wage. The average weekly wage will increase to 67 percent by 2021, with a 67 percent cap.

The good news for employers is that workers will pay for the program from a nominal payroll deduction from their checks to cover the entire payroll cost of the program. Except for the cost of scheduling replacement staff, of course.