Minimum Wage
The Fair Labor Standards Act (FLSA) establishes a minimum wage standard for employees in the private sector and in the federal, state, and local governments. The federal minimum wage is $7.25 per hour, but many states have their own minimum wage laws. When an employee is covered by both state and federal minimum wage regulations, they are entitled to receive the higher wage. Under the FLSA, employers may not have to pay you minimum wage if you are a farm worker, seasonal worker, casual babysitter, or a student worker in certain situations. If you work as a tipped or non-tipped contractor or a subcontractor who provides services to the federal government, the minimum wage is $17.20 per hour as of January 1, 2024.
The New York State (NYS) and New York City (NYC) minimum wages are higher than the federal minimum wage:
- In NYC, the minimum wage is currently $16.00 per hour. Effective January 1, 2025 it will increase to $16.50 per hour; and effective January 1, 2026 it will increase to $17.00 per hour.
- In Long Island and Westchester, the minimum wage is currently $16.00 per hour. Effective January 1, 2025 it will increase to $16.50 per hour; and effective January 1, 2026 it will increase to $17.00 per hour.
- In the remainder of New York State, the minimum wage is currently $15.00 per hour. Effective January 1, 2025 it will increase to $15.50 per hour; and effective January 1, 2026 it will increase to $16.00 per hour.
Tips – Hospitality Industry
In all instances, the cash wage plus the tip credit must at least equal the New York minimum wage.
For food service workers:
- In NYC, the hourly cash wage is $10.65 plus a $5.35 tip credit, equal to the minimum wage. Effective January 1, 2025 it increases to $11.00 plus a $5.50 tip credit; and effective January 1, 2026 it increases to $11.35 plus a $5.65 tip credit.
- In Long Island and Westchester, the hourly cash wage is $10.65 plus a $5.35 tip credit, equal to the minimum wage. Effective January 1, 2025 it increases to $11.00 plus a $5.50 tip credit; and effective January 1, 2026 it increases to $11.35 plus a $5.65 tip credit.
- For the remainder of New York state, the hourly cash wage is $10.00 plus a $5.00 tip credit, equal to the minimum wage. Effective January 1, 2025 it increases to $10.35 plus a $5.15 tip credit; and effective January 1, 2026 it increases to $10.70 plus a $5.35 tip credit.
For the fast food industry, there is no tip credit and the minimum wage is:
- $16.00 per hour in New York City, Long Island and Westchester. Effective January 1, 2025 it increases to $16.50 per hour; and effective January 1, 2026 it increases to $17.00 per hour.
- $15.00 per hour in the remainder of New York State. Effective January 1, 2025 it increases to $15.50 per hour; and effective January 1, 2026 it increases to $16.00 per hour.
For service employees at resort hotels:
- In NYC, Nassau, Suffolk, and Westchester counties, the hourly cash wage as of January 1, 2024 is $13.35 per hour with a $2.65 tip credit, equal to the minimum wage, provided that the weekly average of hourly tips is $8.95 (the tip threshold). Effective January 1, 2025 it increases to $13.75 per hour with a $2.75 tip credit and tip threshold of $9.25. Effective January 1, 2026 it increases to $14.15 per hour with a $2.85 tip credit and tip threshold of $9.55.
- For the remainder of New York State, the hourly cash wage as of January 1, 2024 is $12.50 with a $2.50 tip credit, equal to the minimum wage, provided that the weekly average of hourly tips is $8.40 (the tip threshold). Effective January 1, 2025 it increases to $12.90 per hour with a $2.60 tip credit and tip threshold of $8.70. Effective January 1, 2026 it increases to $13.30 with a $2.70 tip credit and tip threshold of $9.00.
For service employees in restaurants and all-year hotels:
- In NYC, the hourly cash wage is $13.35 with a $2.65 tip credit, equal to the minimum wage, provided that the weekly average of hourly tips is $3.45 (the tip threshold). Effective January 1, 2025 it increases to $13.75 per hour with a $2.75 tip credit and tip threshold of $3.55. Effective January 1, 2026 it increases to $14.15 per hour with a $2.85 tip credit and tip threshold of $3.65.
- In Long Island and Westchester County, the hourly cash wage is $13.35 with a $2.65 tip credit, equal to the minimum wage, provided that the weekly average of hourly tips is $3.45 (the tip threshold). Effective January 1, 2025 it increases to $13.75 per hour with a $2.75 tip credit and tip threshold of $3.55. Effective January 1, 2026 it increases to $14.15 per hour with a $2.85 tip credit and tip threshold of $3.65.
- For the remainder of New York State, the hourly cash wage is $12.50 with a $2.50 tip credit, equal to the minimum wage, provided that the weekly average of hourly tips is $3.20 (the tip threshold). Effective January 1, 2025 it increases to $12.90 per hour with a $2.60 tip credit and tip threshold of $3.30. Effective January 1, 2026 it increases to $13.30 per hour with a $2.70 tip credit and tip threshold of $3.40.
Tips – All Other Industries Except Building Service
In all instances, the cash wage plus the tip credit must at least equal the New York minimum wage.
For service employees:
- In NYC, the minimum wage is $16.00. The hourly cash wage is –
- Currently (as of January 1, 2024) $13.35 per hour plus a $2.65 tip credit, when the weekly average of hourly tips is at least $3.45.
- Set to increase to $13.75 per hour with a $2.75 tip credit and tip threshold of $3.55, effective January 1, 2025.
- Set to increase to $14.15 with a $2.85 tip credit and tip threshold of $3.65, effective January 1, 2026.
- In Long Island and Westchester, the minimum wage is $16.00. The hourly cash wage is –
- Currently (as of January 1, 2024) $13.35 plus a $2.65 tip credit, when the weekly average of hourly tips is at least $3.45.
- Set to increase to $13.75 with a $2.75 tip credit and tip threshold of $3.55, effective January 1, 2025.
- Set to increase to $14.15 with a $2.85 tip credit and tip threshold of $3.65, effective January 1, 2026.
- For the remainder of NYS, the minimum wage is $15.00. The hourly cash wage is –
- Currently (as of January 1, 2024) $12.50 plus a $2.50 tip credit, when the weekly average of hourly tips is at least $3.20.
- Set to increase to $12.90 with a $2.60 tip credit and tip threshold of $3.30, effective January 1, 2025.
- Set to increase to $13.30 with a $2.70 tip credit and tip threshold of$3.40, effective January 1, 2026.
App-based delivery drivers who work in New York City for companies such as UberEats or DoorDash must be paid at least $19.56 an hour as of April 1, 2024. This minimum will increase on April 1 of each year. The $19.56 per hour consists of the 2024 phase-in rate of $18.96, plus an inflation adjustment of 3.15%. The rate will increase to $19.96 per hour, plus an adjustment for inflation when fully phased in on April 1, 2025. Annual adjustments will be announced thereafter.
Ride-sharing or for-hire vehicle drivers are entitled to a minimum per-trip pay rate. Drivers who operate wheelchair accessible vehicles or who make out-of-town trips are entitled to an even higher minimum per-trip pay rate. The New York City Taxi & Limousine Commission website has a Driver Pay Calculator for specific situations.
Also, employees in New York are entitled to meal breaks.
- For factory employees, 60 minutes for meals must be allowed between 11 AM and 2 PM, and mercantile employees get 30 minutes between 11 AM and 2 PM.
- If a shift starts before 11 AM and ends after 7 PM, the employee gets at least an additional 20 minutes between 5 PM and 7 PM.
- If a shift starts between 1 PM and 6 AM, a factory employee gets 60 minutes, and a mercantile employee gets 45 minutes in the middle of their shift.
You have the right to be paid for every hour you work at no less than the minimum wage. Your employer could be violating wage and hours laws by not counting certain time as work time, including:
- Time you work “off the clock,” before clocking in or after clocking out for the day
- Meal or rest breaks that you are required to work through
- Required training programs and classes
- Certain travel time, if part of the employee’s duties
- Waiting time that you must spend available for work at or on the employer’s premises
- Certain show-up or reporting time
- Split shift (spread of hours) in certain industries and situations
Legal Editor: Joseph F. Tremiti, September 2024
Changes may occur in this area of law. The information provided is brought to you as a public service with the help and assistance of volunteer legal editors, and is intended to help you better understand the law in general. It is not intended to be legal advice regarding your particular problem or to substitute for the advice of a lawyer.
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