New York Governor Kathy Hochul announced on the 17th that starting from January 1, 2025, the minimum wage in New York State will be increased by 50 cents. The minimum hourly wage in New York City, Long Island, and Westchester County will be raised to $16.5, while in other areas of the state, it will be increased to $15.5.
This adjustment is part of a historic multi-year agreement reached between Governor Hochul and the New York State legislature, aiming to link the minimum wage to inflation.
The minimum wage plan will see a further increase of 50 cents in 2026, followed by annual raises starting from 2027. The minimum wage “will increase annually based on the Consumer Price Index for All Urban Consumers (CPI-U)” and will be determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the New York State region.
Governor Hochul stated, “Putting money back in your pocket has been a top priority of my first three budgets, including increasing the minimum wage for the lowest earners statewide.” She further added, “With the cost of living continually rising, this increase will help ease inflationary burdens for New Yorkers while providing businesses with the necessary adjustment period.”
For general tipped workers in New York City, Long Island, and Westchester County (such as restaurant servers, bartenders), the minimum base wage is $10.65 per hour, with total earnings after tips reaching at least $15 per hour. In other areas of New York State (excluding New York City, Long Island, and Westchester), general tipped workers have a minimum base wage of $9.45 per hour, with total earnings after tips reaching at least $13.20 per hour.
In New York State, tipped wages are calculated by combining cash wages and tip credits to meet the minimum wage requirement. Except for the construction service industry, employers in all other industries in New York State are allowed to add the “cash wages” they pay to their employees with the tip credits or supplements received from customers to meet the minimum wage requirement. For instance, the minimum wage for restaurant workers in New York City is $16 per hour. Their employer can combine the cash wages (at least $10.65) with tip supplements (not exceeding $5.35 per hour) to meet the minimum wage requirement.
Workers whose wages have not increased after January 1 can file a wage complaint through the New York State Department of Labor website (https://shorturl.at/4xg65) or by calling 833-910-4378.
Employers can find more information, including an interactive minimum wage lookup tool, on the state Department of Labor’s minimum wage website (https://tinyurl.com/574cu7r5).