Minimum Wage to Increase in 2024

On May 3, 2023, New York State Governor Kathy Hochul signed into law a portion of the 2024 New York State budget which will increase the New York State minimum wage starting on January 1, 2024, as follows:

New York City Employers Regardless of Size:

$16.00 on and after January 1, 2024

$16.50 on and after January 1, 2025

$17.00 on and after January 1, 2026

Nassau, Suffolk and Westchester County Employers:

$16.00 on and after January 1, 2024

$16.50 on and after January 1, 2025

$17.00 on and after January 1, 2026

Remainder of the State:

$15.00 on and after January 1, 2024

$15.50 on and after January 1, 2025

$16.00 on and after January 1, 2026

The law also empowers the New York State Commissioner of Labor to adjust the minimum wage annually starting in 2027, based on the average rate of change in the U.S. Department of Labor’s non-seasonally adjusted Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast region over a three-year preceding period. However, the law also includes an off-ramp from the automatic increases for up to two years if any of the following conditions are met:

  • The CPI-W measure is negative;
  • The three-month moving average of the New York State unemployment rate as determined by the U-3 measure rises by one-half percentage point or more relative to its lowest point during the previous twelve months; or
  • The seasonally adjusted, total non-farm employment for New York State decreases during a specified measuring period.

Although all minimum wage orders remain in effect, under the law, the Commissioner of Labor must modify them to increase all monetary amounts contained in them, including for gratuities, meals, lodging and apparel.

Expected Increases to Executive and Administrative Salaries

The minimum weekly salary levels for the executive and administrative exemptions in New York State are tied to the minimum wage and, therefore, will also rise as a result. Historically, the minimum salary level has been set at 75 times the minimum wage. If the future salary increases are set at the same level, they can be expected to increase as follows:

Salaried employees not paid at least the minimum salary level cannot be treated as exempt from overtime. In addition to having to be paid at least the minimum salary level to qualify as overtime exempt, an employee must also meet the applicable duties tests for the exemptions.

Employers should take the necessary steps to ensure that they are ready to implement these wage increases when they take effect.