Department of Labor

Yes, until the minimum wage reaches $15.00, different minimum wage rates will be in effect in the following areas of the state:

• New York City
• Westchester County and Long Island
• Remainder of New York State

The minimum wage will be phased in to reach $15.00 for the following groups on the dates set forth below.

• Group 1: New York City Large Employers (employees who work in New York City for Fast Food Establishments and employers of 11 or more employees) – New York City Large Employers will reach $15 on December 31, 2018;
• Group 2: New York City all others – All other employees who work in New York City will reach $15 on December 31, 2019;
• Group 3: Downstate and all other Fast Food – On December 31, 2021, for all employees in Westchester, Nassau and Suffolk counties and all other Fast Food Workers throughout the state;
• Group 4: All others – Employees who work in the balance of the State (outside of New York City or Nassau, Suffolk and Westchester counties, other than Fast Food Workers) will reach $12.50 per hour on December 31, 2020. On December 31 of each year, starting in 2021, the minimum wage for Group 4 will be increased at rates to be determined annually until the minimum wage reaches $15.00 per hour.

The minimum wage is based on where an employee performs work. Workers must be paid the minimum wage rate for their work location regardless of where the main office of their employer is located.

In New York City only, until December 31, 2019, there are two minimum wage rates that depend on the size of a business: one for a Small Employer, and one for a Large Employer.

Bronx, Queens, Richmond, Kings and New York counties are included in New York City.

Any business that (1) employs one or more employees in New York City and (2) has not employed more than 10 employees at any time during the current or prior calendar year and among all worksites. The employer must pay the Small Employer minimum wage rate to any employee who works within New York City during the current calendar year.

Any business that (1) employs one or more employees in New York City, and (2) has employed more than 10 employees at any time during the current or prior calendar year and among all worksites. The employer must pay the Large Employer minimum wage rate to any employee who works within New York City during the current calendar year.

No. The minimum wage rate in New York City is based on the size of the employer and the work location of the employee. Only employees of a New York City Large Employer who work within New York City must be paid the Large Employer minimum wage rate.

Yes. For example, 16 part-time employees count as 16 employees. Such an employer is required to pay the New York City Large Employer minimum wage rate.

No. A yearly or quarterly average should not be used to establish employer size. The size is based on the highest total number of employees at any given time during the current or prior calendar year and among all worksites.

Yes. A New York City employer must pay the New York City Large Employer rate the moment it employs 11 persons. Note that if the employer had previously employed 11 or more persons at any point during the current or prior calendar year, the employer would have to pay the Large Employer rate throughout the current calendar year.

Since size is determined based on the prior and current calendar year, a New York City Large Employer who ceases to employ more than 10 employees must wait a full calendar year before becoming subject to the lower Small Employer rate. For example, a New York City employer who employed more than 10 employees at any time in 2016 who does not employ more than 10 persons throughout 2017 will be considered a Small Employer in 2018 as long as it continues to employ no more than 10 persons.

Yes, wherever there is joint employment, all employees at all entities must be totaled together to determine which minimum wage rate applies.

An employer may pay the highest rate for all hours worked, or pay each hour worked in each region at the applicable minimum wage rate for that region.

Yes. Under law and regulation, employers have always been required to keep true and accurate records of employees’ weekly hours worked, rates paid, and wages earned for hours worked. If the employer pays different wage rates, they must be able to show the employee’s hours worked for each wage rate.

Yes. If an employee earned wages at more than one rate of pay for the earning period, those rates must appear on the employee’s pay stub.

No. While nearly every employer must pay the New York State minimum wage, there are some very specific exceptions, which only apply to certain employees or employees of public entities. For information about minimum wage exclusions, see our FAQs: https://www.labor.ny.gov/workerprotection/laborstandards/faq.shtm.

No. There is no lower wage rate established for trainees or youth.

Wages may be paid in a variety of ways and can include incentive pay or commissions. The employer has an obligation to ensure an employee earns the applicable minimum wage rate for every hour worked. Information about commissions or other payments may be found at: https://www.labor.ny.gov/legal/counsel/pdf/payment-of-commissions-frequently-asked-questions.pdf

An employer may charge an allowance per meal eaten by an employee. The employer may either charge the lesser meal allowance for every meal or charge the allowance applicable to where the employee ate the provided meal.

Employers may pay the higher uniform maintenance allowance for the week or they may choose to prorate the allowance for the number of hours worked in each region.

Overtime must be paid at one and a half times the employee’s regular rate of pay. If an employee is paid at different rates for different hours, the employer must pay overtime at 1.5 times the regular rate.  The regular rate is determined by dividing gross earnings by the hours worked.

Yes, every employer must provide notice by posting the applicable minimum wage poster. Copies of the posters are available at: www.labor.ny.gov/workerprotection/laborstandards/workprot/minwage.shtm.

If the employee’s rate of pay increases, the increase must be reflected in the wage statement provided with their paycheck. For employees in the Hospitality Industry, written notice must also be provided prior to any change in their hourly rates of pay.

Employees must be made aware of the pay rate applicable to the work they perform. Employers may provide separate notices for each region, job site, job title and pay rate, or the employer may include a listing of all rates on a single employee pay notice. If the employee’s rate of pay increases, the increase must be reflected in the wage statement provided with their paycheck. For employees in the Hospitality Industry, written notice must also be provided prior to any change in their hourly rates of pay. Additionally, any decreased rates must be communicated to the employee prior to the performance of work at the lower rate of pay.

Yes. Each time the New York State minimum wage increases, the state’s minimum salary required for executive and administrative employees will increase proportionately. On December 31, 2016, the state minimum weekly salary for administrative and executive employees will range from $727.50 per week for employees outside of New York City and Nassau, Suffolk and Westchester counties, to $825.00 per week for employees who work in New York City for large employers and Fast Food Establishments.

Yes, but that increase was halted by a federal judge before it took effect. For information about the planned federal increase, visit the United States Department of Labor website at: https://www.dol.gov/whd/overtime/final2016/overtime-factsheet.htm. For information about the status of the lawsuit and its impact on the planned federal increase, visit the United States Department of Labor website at: https://www.dol.gov/whd/overtime/final2016/litigation.htm.

Yes. New York State’s salary threshold is usually higher than the federal threshold, and that will remain the case if the federal courts continue to block the planned federal increases. In such cases, employers who are subject to state overtime requirements must pay overtime at time and a half. While the general rule is that overtime must be paid at time and a half of the regular rate, a limited exception allows certain employers to pay time and a half of the minimum wage rate. That exception is limited to employers who are exempt from federal overtime requirements, and who are subject to state wage order for miscellaneous industries. That wage order covers industries other than hospitality and building services.

You can find more answers to questions about these exemptions at: https://labor.ny.gov/legal/counsel/pdf/overtime-frequently-asked-questions.pdf.

Yes. An employer can change an employee’s rate of pay with advanced notice. Most employees, regardless of their rate or method of payment, must be paid overtime after 40 hours of work per week.

In general, employers who are covered by both state and federal laws must pay employees the higher rate, whether it is the minimum wage or the weekly minimum salary. Information about coverage under the Fair Labor Standards Act (FLSA) is available on the United States Department of Labor website: https://www.dol.gov/whd/overtime/final2016/overtime-factsheet.htm.