Minimum Wage

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Effective December 31, 2018 the minimum wage will rise across New York. The new minimum wage will vary depending on the location and, in New York City, the size of the business. In order for exempt employees to remain exempt into the new year, employers will need to ensure that their annual salaries meet the new required minimum salary threshold.

Beginning December 31, 2018, the following minimum wages are in effect:

Hourly Employees:

Employers outside of Nassau, Suffolk and Westchester counties or NYC $11.10 per hour
Nassau, Suffolk and Westchester employers $12.00 per hour
New York City employers with 10 or fewer employees $13.50 per hour
New York City employers with 11 or more employees $15.00 per hour

Salaried Employees:

Employers outside of Nassau, Suffolk and Westchester counties or NYC

$832 per week

$43,264 annually
Nassau, Suffolk and Westchester employers

$900 per week

$46,800 annually
New York City employers with 10 or fewer employees

$1,012.50 per week

$42,650 annually
New York City employers with 11 or more employees

$1,125 per week

$58,500 annually

Because overtime exemption is analyzed on the basis of workweeks, rather than years, salary increases must conform to the new requirements by the first day of the workweek in which December 31, 2018 falls. Non-compliant employers risk losing the exemption for that workweek, and may be subject to penalties from local, state or federal authorities.  Employers may not count an employee’s nondiscretionary bonuses, incentive payments, or commissions towards their salary to reach the minimum.

Remember, under New York’s Wage Theft Prevention Act (“WTPA”), employers are required to give written notices to each new hire with the following information:

  • Rate or rates of pay, including overtime rate of pay if applicable;
  • How the employee is paid (hourly, per shift, daily, weekly, by commission, etc.);
  • Regular payday;
  • Official name of the employer and any other names used for business;
  • Address and phone number of the employer’s main office or principal location;
  • Allowances taken as part of the minimum wage (tip, meal, and lodging deductions); and
  • The notice must be in English and in the employee’s primary language if the Department of Labor offers a translation

If any of the above data changes, employers must give the employee a week’s notice, unless the employee’s new paystub carries the notice. However, employers must notify an employee in writing before reducing his or her wage rate.  Employers in the hospitality industry must give notice every time an employee’s wage rate changes.

 

For many workers throughout the US, the New Year has begun with increased hourly wages.  On January 1, 2018, 18 states and 22 cities/counties across the nation increased their minimum wage.  Ten of these states raised their minimum wage through legislation, while the remaining states will see an increase because of cost-of-living adjustments to existing minimum wage laws.  According to various think tanks, the minimum wage increase is likely to affect roughly 3.9 to 4.5 million workers nationwide.

 

Alaska: $9.84 an hour (.41% increase by inflation adjustment; $.04 increase)

Albuquerque, New Mexico: $8.95 an hour

Arizona: $10.50 an hour (5.0% increase by legislation; $.50 increase)

Bernalillo County, New Mexico: $8.85 an hour

California: $11 an hour for businesses with 26 or more employees (4.8% increase by legislation; $.50 increase); $10.50 an hour for businesses with 25 or fewer employees

Colorado: $10.20 an hour (9.7% increase by legislation; $.90 increase)

Cupertino, California: $13.50 an hour

El Cerrito, California: $13.60 an hour

Flagstaff, Arizona: $11 an hour

Florida: $8.25 an hour (1.9% increase by inflation adjustment; $.15 increase)

Hawaii: $10.10 an hour (9.2% increase by legislation; $.85 increase)

Los Altos, California: $13.50 an hour

Maine: $10 an hour (11.1% increase by legislation; $1 increase)

Michigan: $9.25 an hour (3.9% increase by legislation; $.35% increase)

Milpitas, California: $12 an hour

Minneapolis, Minnesota: $10 an hour for businesses with more than 100 employees

Minnesota: $9.65 an hour for businesses with annual gross revenue of $500,000 or more (1.6% increase by inflation adjustment; $.15 increase); $7.87 an hour for businesses with annual gross revenue of less than $500,000

Missouri: $7.85 an hour (2.0% increase by inflation adjustment; $.15 increase)

Montana: $8.30 an hour (1.8% increase by inflation adjustment; $.15 increase)

Mountain View, California: $15 an hour

New Jersey: $8.60 an hour (1.9% increase by inflation adjustment; $.70 increase)

New York City, New York: $13 an hour for standard New York City businesses with greater than 10 employees; $12 an hour for standard New York City businesses with 10 or fewer employees; $13.50 for fast food workers

Long Island, New York: $11 an hour for standard workers

Westchester, New York: $11 an hour for standard workers

New York: $10.40 for standard workers (7.2% increase through legislation; $.70 increase); $11.75 for fast food workers

Oakland, California: $13.23 an hour

Ohio: $8.30 an hour (1.8% increase by inflation adjustment; $.15 increase)

Palo Alto, California: $13.50 an hour

Rhode Island: $10.10 an hour (5.2% increase by legislation; $.50 increase)

Richmond, California: $13.41 an hour

San Jose, California: $13.50 an hour

San Mateo, California: $13.50 an hour for standard businesses; $12 an hour for nonprofits

Santa Clara, California: $13 an hour

SeaTac, Washington: $15.64 an hour for hospitality and transportation employees

Seattle, Washington: $15.45 an hour for businesses with 501 or more employees that don’t offer medical benefits ($15 an hour for those that do offer medical benefits); $14 an hour for businesses with 500 or fewer employees that don’t offer medical benefits ($11.50 an hour for those that do offer medical benefits)

South Dakota: $8.85 an hour (2.3% increase by legislation; $.20 increase)

Sunnyvale, California: $15 an hour

Tacoma, Washington: $12 an hour

Vermont: $10.50 an hour (5% increase by legislation; $.50 increase)

Washington: $11.50 an hour (4.6% increase by legislation; $.50 increase)

 

More increases are set to take effect later in the year, as Oregon and Maryland will raise their respective minimum wages in July.  And on July 1, 2018, Chicago will raise its minimum wage to $12 an hour and Los Angeles will raise its minimum wage to $13.25 an hour for employers with 26 or more employees and $12 an hour for employers with less than 26 employees.

It’s that time of year for all employers in New York to confirm that their payroll is set up to pay the new minimum wage that went into effect on December 31, 2017. Additionally, in order for exempt employees to remain exempt into the new year, employers will need to ensure that their annual salaries meet the new required minimum salary threshold.

Beginning December 31, 2017, the following minimum wages are in effect:

Hourly Rates:

Employers outside of Nassau, Suffolk and Westchester counties or NYC $10.40
Nassau, Suffolk and Westchester employers $11.00
New York City employers with 10 or fewer employees $12.00
New York City employers with 11 or more employees $13.00

Beginning December 31, 2017, the minimum salary for exemption as an “administrative” or “executive” employee increased as follows:

Salary Rates:

Employers outside of Nassau, Suffolk and Westchester counties or NYC

$780 per week

$40,560 annually
Nassau, Suffolk and Westchester employers $825 per week $42,900 annually
New York City employers with 10 or fewer employees

$900 per week

$46,800 annually
New York City employers with 11 or more employees

$975 per week

$50,700 annually

Remember, under New York’s Wage Theft Prevention Act (“WTPA”), employers are required to give written notices to each new hire with the following information:

  • Rate or rates of pay, including overtime rate of pay if applicable;
  • How the employee is paid (hourly, per shift, daily, weekly, by commission, etc.);
  • Regular payday;
  • Official name of the employer and any other names used for business;
  • Address and phone number of the employer’s main office or principal location;
  • Allowances taken as part of the minimum wage (tip, meal, and lodging deductions); and
  • The notice must be in English and in the employee’s primary language if the Department of Labor offers a translation

If any of the above data changes, employers must give the employee a week’s notice, unless the employee’s new paystub carries the notice. However, employers must notify an employee in writing before reducing his or her wage rate.  Employers in the hospitality industry must give notice every time an employee’s wage rate changes.