Your Guide to New York’s Minimum Wage

Your Guide to New York’s Minimum Wage
Small business employers and their employees should be aware of the minimum wage requirements in New York.
by Square Oct 18, 2022 — 3 min read
Your Guide to New York’s Minimum Wage

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. Why would you be? 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 these new minimum wage and paid leave laws that affect your business in 2022.

What is the minimum wage in New York State in 2022?

The New York minimum wage depends on the location and size of your company. Here’s a quick breakdown of the minimum wage for non-tipped employees:

 

What about the minimum wage for workers who make tips?

Again, it depends on your company’s industry and location. These are the details:

Fast food workers:

Hospitality service workers:

The stats below are for workers that spend less than 20 percent of their time on untipped work.

Food service workers:

The stats below are for workers that spend less than 20 percent of their time on untipped work.

I heard the minimum wage is supposed to be $15. Is the wage going to continue to increase?

Yes. Currently, the minimum wage in New York City is $15. The rest of the Empire State will continue to increase gradually each year until it reaches $15. Below is the rate increase schedule:

  12/31/2020 12/31/2021
NYC 10 or fewer employees $15 $15
NYC 11 or more employees $15 $15
Nassau, Suffolk and Westchester Counties $14 $15
Rest of state $12.50 $13.20

If the New York minimum wage for 2022 worries you, we’ve got some good news: Starting in 2019, the state’s Department of Budget (DOB) Director runs an annual analysis of the economy in each region—looking at the impact of the minimum wage increases statewide—to determine whether a temporary suspension of the scheduled increases is necessary.

What’s the plan for paid family leave?

Under former Governor Cuomo’s plan, New York employers will be required to provide 12 weeks of paid family leave benefits to eligible employees (i.e., full-time and part-time employees who have worked at a company for six months).

Just like the minimum wage, the paid leave benefits will also be phased in. At the beginning of 2018, employees were eligible for eight weeks of leave. Then by the end of 2021, employees will be eligible for the full 12 weeks.

Stressed about how much this new paid family leave law will cost your business? Don’t be. The new family leave program will be funded entirely via a nominal employee payroll deduction, resulting in zero cost to businesses.

How should small business owners prepare for minimum wage and paid leave increases in 2022?

Every business is different, so there isn’t one right way to prepare. Here are a few options you may want to consider:

 

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.

Square
The Bottom Line is brought to you by a global team of collaborators who believe that anyone should be able to participate and thrive in the economy.

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