On May 3, 2023, New York State Governor Kathy Hochul signed into law a state budget for the 2023-2024 fiscal year, N.Y. State Senate Bill 2-23-S4005C, N.Y. State Assembly Bill No. 2023-A03005C (“the Act”). The Act includes a provision, Part S, which, over a period of three years — depending on the county in which the work is performed — raises New York State’s minimum wage from $15.00 per hour to either $17.00 per hour or $16.00 per hour.
This is the first law increasing New York State’s minimum wage for all workers since April 2016, when then-New York State Governor Andrew Cuomo signed into law a state budget which, over a period of three to six years — depending on the county and the size of the employer — raised New York State’s minimum wage from $9.00 per hour to $15.00 per hour. (In September 2015, the then-acting New York State Commissioner of Labor (the “State Commissioner of Labor”) signed a wage order. That September 2015 wage order, over a period of three to six years — depending on the county — increased New York State’s minimum wage for fast food workers from $8.75 per hour to $15.00 per hour.)
Specifically, Part S of the Act amends the New York State Minimum Wage Act, N.Y. Labor Law § 652, to provide that the hourly minimum wage for work performed in New York City (including the borough of Manhattan) will increase to:
Pursuant to the Act, the hourly minimum wage for work performed in Nassau, Suffolk, and Westchester counties will increase to:
As per the new law, the hourly minimum wage for work performed in New York State, but outside New York City (including the borough of Manhattan) and outside of Nassau, Suffolk, and Westchester counties will rise to:
Let’s take a look back at the law that, eleven years ago, began New York State’s upward march from the federal minimum wage to more than twice that figure.
n March 29, 2013, New York State’s then-Governor Andrew Cuomo had signed into law a state budget for the 2013-2014 fiscal year, N.Y. State Senate Bill S02607D, N.Y. State Assembly Bill No. A03007D (“the 2013 Act”). The 2013 Act had included a provision, Part P, which, over a period of three years, raised New York State’s minimum wage from $7.25 per hour to $9.00 per hour.
The 2013 Act effected the first increase in New York’s minimum wage since July 2009, when the Empire State’s minimum wage was increased to equal the current federal minimum wage of $7.25 per hour.
Specifically, Part P of the 2013 Act amended the New York State Minimum Wage Act, N.Y. Labor Law § 652, to provide that the hourly minimum wage in New York City (including the borough of Manhattan) and throughout the remainder of New York State would increase to:
In contrast to a March 2013 bill, N.Y. State Assembly Bill No. A00038A, which the State Assembly had passed but which was not enacted into law, the 2013 Act did not index, to inflation, future increases in New York State’s minimum wage.
Further, the new legislation did not raise the minimum wage applicable in New York State to food service workers and service employees of restaurants and hotels.
Immediately before the signing into law of the 2013 Act, food service workers in New York City (including the borough of Manhattan) and throughout the remainder of the Empire State were entitled to receive a minimum wage of $5.00 per hour, and credit for tips could not exceed $2.25 per hour, provided that the total of tips received plus the wages equaled or exceeded $7.25 per hour. 12 N.Y.C.R.R. § 146-1.3(b) (2013 version).
Similarly, immediately before the signing into law of the 2013 Act, service employees of restaurants and hotels in New York State were entitled to receive a minimum wage of $5.65 per hour. Credit for tips could not exceed $1.60 per hour, provided that the total of tips received plus wages equaled or exceeded $7.25 per hour. 12 N.Y.C.R.R. § 146-1.3(a).
The 2013 Act did direct the New York State Commissioner of Labor to appoint a Wage Board to inquire into, and recommend, any increases in the minimum wage applicable in New York State to food service workers and service employees of restaurants and hotels. For a discussion by this author of the Wage Order for fast food employees which, on September 10, 2015, then-acting New York State Commissioner of Labor Mario J. Musolino signed into law, see here.
According to the National Conference of State Legislatures, once the 2013 Act’s December 31, 2013 increase goes into effect, New York State join 18 other states which then had minimum wages higher than the federal minimum wage of $7.25 per hour.
Employers in New York State should review the wages they pay their workers, and the Act’s staggered schedule of increases in the hourly minimum wage, to ascertain whether, and if so when, the employers must raise salaries or hourly rates to comply with the new law.
This article was first published in 2013; this article was revised and updated on February 17, 2024.
Call New York City Unpaid Wages Lawyer David S. Rich, LLC at (347) 835-5688 to speak with a knowledgeable labor and employment lawyer about ensuring that your company complies with overtime pay and other wage and hour laws, or to retain a skilled overtime attorney to defend your company in unpaid overtime lawsuits or other wage and hour litigation.
David Rich
David S. Rich is the founding member of the Law Offices of David S. Rich, LLC,
a Manhattan Employment and Business Litigation Law Firm, in New
York City and in Englewood Cliffs, New Jersey...View Profile