New York State Minimum Wage Laws Across The State

New York State Minimum Wage Laws Across The State

New York State has 14 minimum wages across the state. It is the most complicated state for employers to stay compliant with the labor laws, harder than even California, which has numerous local minimum wage and sick leave laws. Wages break into geographical location and the size of the employer. It also changes across industries and by employee type.

This article covers the types of minimum wages for industry, geographical location, and employer size.

Employers in New York must track the wages if they have employees who work in various regions. New York minimum wage changes on December 31, 2017 and again on December 31, 2018.

Understanding Minimum Cash Wages

Minimum cash wages refer to the employer’s portion of the minimum wage that employees must be paid. According to federal law, tipped employees must still make $7.25 an hour, but as much as $5.12 of their minimum wage can be earned through tips.

However, even if an employee makes more than $5.12 an hour in tips, only $5.12 can be counted toward their minimum wages. This means that the minimum cash wage that an employer must pay is $2.13.

It is important to note that it’s a minimum, not maximum cash wage. If the employee does not earn at least $5.12 in tips per hour, the employer must make up the rest of their wages to ensure that their minimum wage is at least $7.25.

Many states also have a minimum cash wage that is used in the same way. New York State also provides a maximum tip credit that employers can use to pay a lower minimum cash wage.

Fast Food Workers Minimum Wage in New York City

Fast Food workers in NYC have had a minimum wage of $12.00.

On December 31, 2017, the minimum wage will increase to $13.50.

On December 31, 2018, it will increase again to $15.00.

Fast Food Workers Outside of New York City Minimum Wage

Fast Food employees outside of New York City are currently paid a minimum wage of $10.75.

On December 31, 2017, it will increase to $11.75.

On December 31, 2018, it will increase again to $12.75.

Date Fast Food Workers In

New York City

Fast Food Workers Outside

New York City

2017 $12.00 $10.75
December 31, 2017 $13.50 $11.75
December 31, 2018 $15.00 $12.75

New York State Employers General Minimum Wage

New York City has two minimum wages wages that apply and they depend upon the size of the employer.

In addition, depending on the location of the employee outside of New York City, different minimum wages apply.

New York City Small Employer General Minimum Wage

Small employers are businesses who have 10 or less employees. They must pay their employees a minimum wage of $10.50 in 2017.

On December 31, 2017 their wage will go up to $12.00.

On December 31, 2018, it will rise again to $13.50.

New York City Large Employer General Minimum Wage

Large employers are businesses with 11 or more employees. The minimum wage for employees of large employers is currently $11.00.

On December 31st, 2017, it will go up to $13.00.

On December 31, 2018, minimum wage will become $15.00.

Nassau, Suffolk, & Westchester Counties General Minimum Wage

Employees in Nassau, Suffolk, and Westchester Counties currently have a minimum wage of $10.00.

On December 31, 2017, it will go up to $11.00.

It will become $12.00 on December 31, 2018.

Rest of New York State General Minimum Wage

New York State’s minimum wage is currently at $9.70 for counties with out specific minimum wages.

On December 31, 2018, it will raise to $10.40.

It will raise again at the end of 2018 to $11.10.

Effective Date NYC Small Biz NYC Large Biz Nassau, Suffolk & Westchester Counties Rest of

New York State

12/31/2016 $10.50 $11.00 $10.00 $9.70
12/31/2017 $12.00 $13.00 $11.00 $10.40
12/31/2018 $13.50 $15.00 $12.00 $11.10
12/31/2019 $15.00 TBA $13.00 $11.80

New York Tipped Employees Minimum Wage

Tipped employees in New York have possibly the most complex minimum wage. Under the law if an employee receives less than the low tip amount, then the employer cannot claim any tip credit.

If the employee receives between the low and the high tip amount, then the tip credit cannot be higher than the low amount.

If the employee receives more than the high tip amount, then the employer can use a tip credit of the high tip amount.

New York City Tipped Employee of a Large Employer

 Large employers currently have a low tip amount of $1.65 and a high tip amount of $2.70.

If the employee makes less than $1.65 in tips, then the employer must pay at least $11.00 in minimum wage for 2017.

If the employee makes between $1.65 and $2.70 in tips, then the employer can use a tip credit of $1.65 and pay the employee $9.35.

If the employee makes more than $2.70 in tips, the employer can use a $2.70 tip credit and pay the employee $8.30.

On December 31, 2017 the low tip amount will rise to $1.95. The high tip amount will also rise and become $3.20.

On December 31, 2018, the low tip amount will rise again and become $2.25. The high tip amount will become $3. 65.

New York City Tipped Employee of a Small Business 

NYC small employers, 10 or fewer employees, currently have a low tip amount of $1.60 and a high tip amount of $2.55.

As long as the employee earns at least the low tip amount, the employer can use it as a tip credit. If the employee earns at least the high tip amount, the employer can use the high amount as a tip credit.

On December 31, 2017 the low tip amount will raise to $1.80. The high tip amount will become $2.95.

On December 31, 2018, the low tip amount will become $2.05 and the high tip amount will move to $3.30.

Date NYC 1-10

Employees Low

NYC 1-10

Employees

High

NYC 11+

Employees Low

NYC 11+ Employees High
December 31, 2016

Tip Amount

$1.60 $2.55 $1.65 $2.70
Minimum Cash Wage $8.90 $7.95 $9.35 $8.30
December 31, 2017

Tip Amount

$1.80 $2.95 $1.95 $3.20
Minimum Cash Wage $10.20 $9.05 $11.05 $9.80
December 31, 2018

Tip Amount

$2.05 $3.30 $2.25 $3.65
Minimum Cash Wage $11.45 $10.30 $12.75 $11.35

Nassau, Suffolk & Westchester Counties Tipped Employees

Employees in Nassau, Suffolk, and Westchester Counties currently have a low tip credit of $1.05 and a high tip credit of $2.45.

On December 31, 2017, the low tip amount will become $1.65. The high tip amount will become $2.70.

On December 31, 2018, the low tip amount will rise to $1.80. The high tip amount will rise to $2.95.

Tipped Employees in the Remainder of New York State

Tipped employees not in specified locations (the remainder of New York State) currently have a low tip amount of $1.45 and a high tip amount of $2.35.

On December 31, 2017, the low tip amount becomes $1.55 and the high tip amount becomes $2.55.

Starting December 31, 2018, the low tip amount rises to $1.65. The high tip amount goes to $2.70.

Date Nassau, Suffolk & Westchester

Low

Nassau, Suffolk & Westchester

High

Rest of

New York

Low

Rest of

New York

High

December 31, 2016 $1.50 $2.45 $1.45 $2.35
Minimum Cash Wage $8.50 $7.55 $8.25 $7.35
December 31, 2017 $1.65 $2.70 $1.55 $2.55
Minimum Cash Wage $9.35 $8.30 $8.85 $7.85
December 31,2018 $1.80 $2.95 $1.65 $2.70
Minimum Cash Wage $10.20 $9.05 $10.15 $9.10

Overview of the New York State Hospitality Service Employees Minimum Wage

As long as the employee receives at least the amount of the tip credit in actual tips, the employer can apply the tip credit to minimum wage and pay a cash minimum wage. Cash minimum wage plus the tip credit equals the minimum wage for tipped employees.

 Minimum wage includes not only a tip credit and a minimum cash wage, but also includes criteria under which an employer can apply the tip credit and pay the minimum cash wage, instead of paying the full minimum wage.

In order for New York employers to pay an employee a minimum cash wage, the employee must qualify as a tipped employee.

First, service employees in the hospitality industry must work more than 80% of their shift doing tipped work. If an employee spends more than 2 hour or more than 20% of their shift doing non-tipped work, then the employer must pay that employee regular minimum wage.

In addition, tipped employees must receive at least a tip threshold for the employer to use the tip credit and pay the minimum cash wage instead of the regular minimum wage.

The tip threshold is broken into thresholds for employers over and under 10 employees and it is broken into resort and non-resort employees.

New York City Hospitality Service Employees of a Large Employer

New York City considers large employers to be those who have 11 or more employees. Tip employees of large employers currently have a cash wage of $9.15. The employer can use a tip credit of $1.85. In order to use the tip credit, the tipped employee must have earned at least an average tip threshold of $2.40 in average tips per hour for the week. Hotels that are open all year round fall under the regular wage.

Resort hotels’ tipped employees must receive an average tipped threshold of $6.15 per hour for the week.

On December 31, 2017, the minimum cash wage goes up to $10.85 an hour with the tip credit rising to $2.15 an hour. The tip threshold moves up to $2.80. Employees must earn at least the tip threshold as an average amount of tips received for the week.

Report tipped employees must receive an an average tipped threshold of $7.30 per hour.

On December 31, 2018, the minimum cash wage goes up to $12.50 and includes a tip credit of $2.50. Employees must average at least $3.25 in tips per hour for the week (tip threshold).

Resort employees must average at least $8.40 in hourly tips for the week (tip threshold).

New York City Hospitality Service Employees of Small Employers

Small employers are those businesses who have 10 or fewer employees. These tipped employees have a current cash wage of $8.75. Employers may count a tip credit of $1.75 if the employee meets a tip threshold of $2.30 in average tip earnings per hour for the week.

Resort employees have a tip threshold of $5.90 in average tips received for the week per hour.

On December 31, 2018, the minimum cash wage will increase to $10.00 with a tip credit of $2.00. The tip threshold for restaurant and year-round hotel employees will become $2.60 an hour as an average tipped wage for the week.

Resort employees will see their tipped threshold go up to $6.75 as an average hourly earnings of tips received.

On December 31, 2018, the minimum cash wage rises to $11.25 with a tip credit of $2.25. Tip threshold becomes $2.95.

Resort employees’ tip threshold becomes $7.60 as an average amount of tips received per hour for the week.  

Nassau, Suffolk, & Westchester Counties Hospitality Service Employees Minimum Wage

have a minimum cash wage of $8.35 in 2017. The tip credit is $1.65. These employees must earn an average of $2.15 in tips per hour for the week (tip threshold).

Resort employees must earn an average tip threshold of $8.10 per hour for the week.

On December 31, 2017, the minimum cash wage becomes $9.15 an hour. The tip credit an employer may claim becomes $1.85. Tip threshold for the employee’s average hourly earnings in tips becomes $2.40.

Resort employees must earn an average of $6.15 in tips an hour (tip threshold).

On December 31, 2018, the minimum cash wage rises to $10.00 with a tip a tip credit of $2.00. Tip threshold rises to $2.60 for employees of restaurants and year-round hotels.

Remainder of New York State Hospitality Service Employees Minimum Wage

The remainder of New York State currently has a minimum cash wage of $8.10 with a tip credit of $1.60. These employees must meet a tip threshold of $2.10. This is the minimum hourly average tip earnings the employee must reach for the week.

Resort employees must meet a tip threshold of at least $5.45 an hour.

On December 31, 2017, the minimum cash wage rises to $8.65 an hour with a tip credit off $1.75. The tip threshold becomes $2.25.

Resort employee’s tip threshold becomes $5.85.

On December 31, 2018, the minimum cash wage rises to $9.25 with a tip credit of $1.85. The tip threshold will be set at $2.40.

Resort employees’ tip threshold will rise to $6.25.

Date Small Employers

1-10 employees

Large Employers

11+

employees

Nassau, Suffolk & Westchester Rest of

New York

December 31, 2016 $1.75 $1.85 $1.65 $1.60
Minimum Cash Wage $8.75 $9.15 $8.35 $8.10
Tip Threshold $2.30 $2.40 $2.15 $2.10
Resort Tip Threshold $5.90 $6.15 $5.60 $5.45
December 31, 2017 $2.00 $2.15 $1.85 $1.75
Minimum Cash Wage $10.00 $10.85 $9.15 $8.75
Tip Threshold $2.60 $2.80 $2.40 $2.25
Resort Tip Threshold $6.75 $7.30 $6.15 $5.85
December 31, 2018 $2.25 $2.50 $2.00 $1.85
Minimum Cash Wage $11.25 $12.50 $10.00 $9.25
Tip Threshold $2.95 $3.25 $2.60 $2.40
Resort Tip Threshold $7.60 $8.40 $6.75 $6.25

New York Hospitality Food Service Workers Overview

Food Service workers, not including fast food workers, must receive a minimum wage. Included in the minimum wage is the employees tipped amount and the employer’s minimum cash wage. However, employers can only use the tip credit if the employee has received at least that much in tips. Fast food employers cannot use a tip credit for their employees.

New York City Hospitality Food Service Employees Businesses With 11+ Workers

Large Employers in New York City with Hospitality Food Service Employees currently have a minimum wage of $11.00. Employers can utilize a tip credit of $3.50 and pay a minimum cash wage of $7.50.

On December 31, 2018, the minimum wage rises to $13.00 with a tip credit of $4.35. That makes the new minimum cash wage at $8.65.

On December 31, 2018, the minimum wage will be $15.00. Minimum cash wage will become $10.00 with a tip credit of $5.00.

New York City Hospitality Food Service Employers With 10 or Fewer Workers

have a minimum wage, in 2017, of $10.50 an hour. The tip credit stands at $3.00 with a minimum cash wage of $7.50.

On December 31, 2017, the minimum wage will become $12.00 with a tip credit of $4.00 and a minimum cash wage of $8.00.

On December 31, 2018, the minimum wage becomes $13.50. Minimum cash wage will be $9.00 with a tip credit of $4.50.

Nassau, Suffolk, & Westchester Counties Hospitality Food Service Employees

Employees in Nassau, Suffolk and Westchester counties enjoy a minimum wage of $10.00. The tip credit is at $2.50 with a minimum cash wage of $7.50.

On December 31, 2017, the minimum wage rises to $11.00. The tip credit will be $3.50 and the minimum cash wage will remain at $7.50.

On December 31, 2018, the minimum wage will rise to $12.00. The tip credit will rise to $4.00 an hour and the minimum cash wage will become $8.00.

Remainder of New York State Hospitality Food Service Employees

The rest of the state’s hospitality food service employees have a minimum wage of $9.70. Employers can claim a tip credit of $2.20 and pay a cash minimum wage of $7.50.

On December 31, 2017, the minimum wage becomes $10.40. The cash minimum wage stays at $7.50 with the tip credit rising to $2.90.

On December 31, 2017, the minimum wage rises again and becomes $11.10. The minimum cash wage remains at $7.50 with a new tip credit of $3.60.

Date Small Employers

1-10 employees

Large Employers

11+

employees

Nassau, Suffolk & Westchester Rest of

New York

December 31, 2016

Tip Credit

$3.00 $3.50 $2.50 $2.20
Minimum Cash Wage $7.50 $7.50 $7.50 $7.50
December 31, 2017

Tip Credit

$4.00 $4.35 $3.50 $2.90
Minimum Cash Wage $8.00 $8.65 $7.50 $7.50
December 31, 2018

Tip Credit

$5.00 $4.50 $4.00 $3.60
Minimum Cash Wage $10.00 $9.00 $8.00 $7.50

Farm Workers Minimum Wage

Farm workers must be paid the New York State General Minimum Wage.

Effective Date NYC Small Biz NYC Large Biz Nassau, Suffolk & Westchester Counties Rest of

New York State

12/31/2016 $10.50 $11.00 $10.00 $9.70
12/31/2017 $12.00 $13.00 $11.00 $10.40
12/31/2018 $13.50 $15.00 $12.00 $11.10
12/31/2019 $15.00 TBA $13.00 $11.80

Summary of New York Minimum Wage Laws

As shown above, New York has a very and complex and difficult minimum wage law to navigate. Employers who violate the minimum wage law face strict penalties and severe restrictions. Employers must make sure that they pay the minimum wages applicable to each region to employees who work in multiple locations.

Let SwipeClock Help

Businesses in New York have various minimum wage laws to comply with, but also have sick leave laws, state family leave laws conflicting sick leave and other leave laws.

Additionally, these businesses have to also comply with Federal Overtime Laws, the Family Medical Leave Act and any other national or local laws that are enacted. SwipeClock provides a comprehensive array of workforce management and time tracking tools that can help businesses to more easily stay in compliance with local and national laws.

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Resources

New York Fact Sheet

New York State Website

Written by Annemaria Duran. Last updated on December 1, 2017

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