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If you’re a business owner in New York, you know that former Governor Cuomo signed legislation that calls for an increase in New York minimum wage and paid leave in recent years. But you may still not be clear about the details. With several different minimum wages ranging across various sectors and regions, it’s confusing.
Not to worry: We’ve got you covered. This article walks you through everything you need to know about new minimum wage and paid leave laws that affect your business in 2024.
What is the minimum wage in New York State in 2024?
The New York minimum wage depends on the location of your company. Here’s a quick breakdown of the minimum wage for non-tipped employees effective January 1, 2024:
- New York City businesses: $16.00 per hour
- Nassau, Suffolk, and Westchester county businesses for all workforce sizes: $16.00 per hour
- Rest of New York State: $15.00 per hour
What about the minimum wage for workers who make tips?
Again, it depends on your company’s industry and location. These are the details, effective January 1, 2024:
Fast food workers:
- New York City, Long Island, and Westchester County minimum wage: $16.00 per hour
- Rest of New York State: $15.00 per hour.
Hospitality service workers:
- New York City businesses: $13.35 per hour and $2.65 in tip credit
- Long Island and Westchester County businesses: $13.35 per hour and $2.65 in tip credit
- Rest of New York State: $12.50 per hour and $2.50 in tip credit
Food service workers:
- New York City businesses: $10.65 per hour and $5.35 in tip creditNYC businesses with 10 or fewer employees:
- Long Island and Westchester County businesses: $10.65 per hour and $5.35 in tip credit
- Rest of New York State: $10.00 per hour and $5.00 in tip credit
How should small business owners prepare for minimum wage and paid leave increases in 2024?
Every business is different, so there isn’t one right way to prepare. Here are a few options you may want to consider:
- Audit your expenses: Check your cash flow in detail and create a hiring plan that you can afford. In some cases, you may find that hiring temporary workers as needed is less expensive than taking on full-time regular staff. If you are a new business, be sure to register for a free EIN so you can begin hiring and to stay compliant
- Make sure you hire and keep the right employees: Replacing an employee costs a lot. You decrease the total cost associated with recruiting and training when you hire (and then retain) the right people. Look for candidates with good track records, who come recommended, and who fit in with the company culture. Once they’re onboarded, make sure you build a relationship and provide paths for growth; it makes it more likely that they will stay in their role.
- Increase prices: This is a great way to increase cash flow. Customers are rarely happy with a price hike, but keep in mind that your competitors will be forced to do the same. Just make sure you keep track of trends, and don’t raise prices too high.
- Update tech: Consider automating certain aspects of the work (like payroll), and learn how to do payroll yourself to reduce production costs. Square Payroll is easy to use and can help you avoid common payroll mistakes.
As always, to make sure your business is prepared and stays in compliance, we recommend that you discuss these upcoming changes to the New York minimum wage and paid family leave laws with your accountant and lawyer.
