On January 1, 2025, the state minimum wage was revised to include increases that varied according on the region in which the business was located.
It is required that workers earn a minimum wage of $16.50 per hour in New York City, Long Island, and Westchester. $15.50 per hour is the rate that applies throughout the rest of the state.
Why are there regional differences?
Through the implementation of a system of regionalized minimum wage, the state of New York is able to adjust the cost of living and economic conditions that are present in each region. The fact that metropolitan regions like New York City have a greater cost of living supports the higher fee that is charged.
What about tipped workers?
Tips are subject to a set of regulations that are specific to service and food workers. For instance, in New York City, Long Island, and Westchester, workers in the service industry who make tips are required to get a minimum base salary of $13.75, in addition to a tip credit of $2.75. In the remaining parts of the state, the minimum wage is $12.90, and there is a tip credit of $2.60.
Who are the industries that are most impacted?
The modification has a disproportionately negative impact on fast food restaurants, hospitality businesses, beauty salons, and personal service businesses. It is common for these jobs to have a significant number of employees who are paid minimum pay or get tips.
What are the chances of additional increases?
It has been declared by the New York Department of Labor that the minimum wage will be raised once more on January 1, 2026, with an increase of fifty cents per hour across the board. All of the information will be made public prior to the 31st of December in 2025.
Locations where official information can be found
It is recommended that you go to the official website of the New York Department of Labor and read through the commonly asked questions regarding minimum wage. This will allow you to obtain the most recent pricing information as well as the precise regulations that apply to each category of worker.