The minimum wage in New York, outside of New York City, has been increasing gradually, with the ultimate goal of reaching $15.00 per hour. The scheduled increases depend on your location within the state and your employer’s size.
Merging Cash Compensation and Tips
In New York State, employers across various industries (excluding building service) have the flexibility to meet minimum wage requirements by merging a base “cash wage” provided by the employer with a credit or allowance for tips received from customers by the employee.
To illustrate, consider food service workers in New York City, where the minimum wage stands at $15.00 per hour. Here, employers can fulfill the minimum wage by combining a cash wage of at least $10.00 with a tip allowance of up to $5.00 per hour.
Constraints Within the Hospitality Sector
In the hospitality industry, there are restrictions on the application of tip credits. These restrictions encompass situations where tipped employees engage in non-tipped duties for over two hours or more than twenty percent of their shift.
They also apply when service employees receive tips that average less per hour than the following benchmarks:
- In resort hotels
- NYC: $8.40
- Long Island and Westchester County: $8.40
- Remainder of New York State: $7.40
- In restaurants and all-year hotels
- NYC: $3.25
- Long Island and Westchester County: $3.25
- Remainder of New York State: $2.85
Stay Informed
Keeping track of the minimum wage, especially with varying rates across regions and industries, is essential for both employers and employees. Labor laws and regulations can change, so staying up-to-date is crucial to ensure fair compensation. For the most accurate and current information, refer to the New York State Department of Labor or other authoritative sources.
