New York Minimum Wage Increases to $16.00 Per Hour Effective January 1, 2024
By Joel Riley
New York's minimum wage rose to $16.00/hour in NYC, Nassau, Suffolk, and Westchester counties effective January 1, 2024, with $15.00/hour in the rest of the state, as part of a multi-year schedule enacted in the FY2024 state budget.
What Changed
New York's statewide minimum wage increased effective January 1, 2024, as part of the minimum wage schedule enacted in the FY2024 New York State Budget (S.4006-C). The new rates are:
Region | 2023 Rate | 2024 Rate
New York City | $15.00/hr | $16.00/hr
Nassau, Suffolk, Westchester Counties | $15.00/hr | $16.00/hr
Remainder of New York State | $14.20/hr | $15.00/hr
This is part of a phased schedule that will continue with $0.50 annual increases through 2026, after which the minimum wage will be indexed to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region.
Who Is Affected
All New York employers, regardless of size. The minimum wage applies to most employees, including full-time, part-time, and temporary workers. Tipped employees are subject to separate tip credit rules that also adjust with the minimum wage increase. Employers should also note that the salary basis threshold for overtime exemptions under New York law adjusts in tandem with minimum wage increases.
Where It Applies
New York statewide, with regional rate variations as outlined above. Employers with operations across multiple regions must apply the rate corresponding to each employee's work location.
When It Takes Effect
Effective January 1, 2024. Future scheduled increases:
January 1, 2025: $16.50 (NYC/suburban) / $15.50 (rest of state)
January 1, 2026: $17.00 (NYC/suburban) / $16.00 (rest of state)
2027 onward: Indexed to CPI-W Northeast Region
Why It Matters
Minimum wage violations in New York carry significant penalties. Employers who fail to pay the correct minimum wage may be liable for back wages, liquidated damages of up to 200% of unpaid wages, interest, and civil penalties up to $1,000 per violation for willful or repeated offenses. Criminal penalties for willful non-compliance can include fines between $500 and $20,000 and up to one year of imprisonment. Additionally, the updated minimum wage rate must be reflected on mandatory workplace posters.
The Humareso Take
New York's phased approach gives employers a predictable path forward, but it also means annual adjustments are now baked into the calendar for the foreseeable future. If you have employees across different New York regions, make sure your payroll system is applying the correct rate by work location, not just by company address. This is also a good time to review your salary thresholds for exempt employees, since those shift alongside the minimum wage in New York.
Recommended Action Steps
Update payroll systems to reflect the new minimum wage rates effective January 1, 2024, ensuring correct rates are applied by work location.
Review and adjust compensation for any employees currently earning below the new minimum wage thresholds.
Post updated New York minimum wage posters in all workplace locations in a conspicuous area accessible to employees.
Audit tip credit calculations if you employ tipped workers to ensure compliance with updated tip credit rules.
Review exempt employee salary thresholds to confirm that overtime exemption classifications remain valid under the new minimum wage.
Contact your Humareso representative for a compensation compliance review tailored to your New York operations.
✅ Recommended Action Steps
Originally posted by Joel Riley on 2024-01-04T18:50:58.524Z in Humareso Team > Compliance channel.