An increase in the minimum wage, intended to eventually bring New York’s state minimum wage to $15 an hour, is set to go into effect on December 31.

As a result of a measure signed into law in April 2016, the state will continue to see minimum wage increases implemented on a regional basis. The state’s current basic minimum wage is $10.40 an hour.

Under this law, New York City employers with 11 or more employees will see the minimum wage go to $15 an hour on December 31.

New York City employers with fewer than 11 employees will see the minimum wage increase to $13.50 on December 31 and rise $1.50 next year, reaching $15 at the end of 2019.

Long Island and Westchester counties will see the minimum wage rise to $12 on December 31 and then go up $1 per year, reaching $15 at the end of 2021.

The rest of the state will see the minimum wage hit $11.10 on December 31 and go up 70 cents per year until it reaches $12.50 at the end of 2020. After that, the minimum wage will continue to increase to $15 an hour on an indexed schedule.

The law contains a “safety valve” that will allow state officials beginning in 2019 to consider the effects of wage increases on regional economies before permitting scheduled increases to go into effect.

The minimum salary required for administrative and executive employees to be exempt from overtime pay in New York State is set to increase as well.  Beginning December 31, 2018, the salary thresholds are as follows:

• NYC employers with 11 or more employees, $1,125 per week.
• NYC employers with 10 or fewer employees, $1,012.50 per week.
• For Nassau, Westchester, and Suffolk County employers, $900 per week.
• For other employers, $832 per week.

We are currently reviewing all employee pay rates and will be in touch shortly to discuss any necessary pay adjustments.  If you have any questions, please contact us at 845-471-1200.