New York Minimum Wage Set to Increase
On January 1, minimum wage in New York will rise by $0.50. The new rates will be $16.50 per hour on Long Island and in New York City and Westchester County, and $15.50 in the rest of the state.
Regional and Industry Variations
State minimum wage varies by region and industry. At the beginning of 2024, it rose to $16 in the downstate region, up from $15 last year, while it hit $15 upstate, up from $14.20 in 2023.
Living Wage Calculator
According to MIT’s living wage calculator, a single New Yorker with no kids needs to make $26.86 per hour for 40 hours a week, on average, to survive.
Future Increases
Minimum wage will increase by another $0.50 on January 1, 2026. On January 1, 2027, pay in New York will be tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure meant to keep pace with inflation. An “off-ramp” can freeze indexed increases if there are economic downturns or budget crises.
Potential Consequences
According to the Economic Policy Institute and the National Employment Law Project, that’s a dangerous off-ramp. Two conditions can freeze raises:
- The three-month average unemployment rate from May to July increases by 0.5 percentage points compared to the previous year
- Non-farm employment in New York drops between July to January or April to July.
They said that unemployment rising and job numbers dropping in these specific ways are common, happening in roughly one out of every four years since 2000. Such a freeze could mean $609 million in lost wages for about 1.5 million workers.
Wage Theft
Employers have to pay at least minimum wage for every single hour an employee works. Overtime pay at one-and-a-half times the regular rate kicks in at 40 hours a week. To prove that they’re complying, employers are supposed to keep and provide detailed, accurate records of hours and payments. The State Department of Labor (DOL) offers training for businesses to make sure they’re following the law.
Consequences of Non-Compliance
Not following the law is wage theft—larceny in New York, a felony if the value is over $1,000. Individuals and companies who don’t comply can face criminal charges and civil penalties, like interest, back pay, and fines. Report your employer if they haven’t paid you or are breaking the law by calling the DOL at (833) 910-4378 or filing an online complaint.
History of Minimum Wage in New York
New York established its minimum wage in 1960: $1 per hour. In 1968, it hit $1.60, and it reached $3.10 by 1980. As of 2009, it lined up with the federal minimum of $7.25.
Conclusion
The wage hike aims to benefit hundreds of thousands of New Yorkers and strengthen local economies. Fair compensation reduces poverty, cuts social welfare costs, makes workers more productive, and can help address soaring costs of living.
FAQs
Q: What is the new minimum wage rate in New York?
A: The new minimum wage rates are $16.50 per hour on Long Island and in New York City and Westchester County, and $15.50 in the rest of the state.
Q: What are the conditions for freezing wage increases?
A: The conditions are the three-month average unemployment rate from May to July increases by 0.5 percentage points compared to the previous year, or non-farm employment in New York drops between July to January or April to July.
Q: What happens if employers don’t comply with minimum wage laws?
A: Non-compliance is wage theft—larceny in New York, a felony if the value is over $1,000. Individuals and companies who don’t comply can face criminal charges and civil penalties.
Q: What is the history of minimum wage in New York?
A: New York established its minimum wage in 1960: $1 per hour. In 1968, it hit $1.60, and it reached $3.10 by 1980. As of 2009, it lined up with the federal minimum of $7.25.
