Compliance updates, analysis, plus HR and payroll best practices from HR One
As the new year approaches, employers in New York State must prepare for an increase in the minimum wages. Effective January 1, 2025, both regular and tipped workers will see increases in their hourly earnings. Here’s a guide on what these changes entail and how they will impact both employers and employees across different regions of New York.
Regular Workers’ Wage Increase
The minimum wage is set to increase across New York, with varying rates depending on the region. Here is the breakdown for regular workers:
|
Region |
Current Minimum Wage |
New Minimum Wage (2025) |
Current Overtime Rate |
New Overtime Rate (2025) |
|
NYC, Long Island, Westchester |
$16.00 |
$16.50 |
$24.00 |
$24.75 |
|
Rest of State |
$15.00 |
$15.50 |
$22.50 |
$23.25 |
Changes for Tipped Food Service Workers
Tipped workers, particularly in the food service industry, will also benefit from new wage rates. The changes are designed to balance the cash wage paid by employers with the tips received from customers, ensuring that employees meet the standard minimum wage thresholds.
|
Region |
Current Cash Wage |
New Cash Wage (2025) |
Current Overtime Wage |
New Overtime Wage (2025) |
Current Tip Credit |
New Tip Credit (2025) |
|
NYC, Long Island, Westchester |
$10.65 |
$11.00 |
$18.65 |
$19.25 |
$5.35 |
$5.50 |
|
Rest of State |
$10.00 |
$10.35 |
$17.50 |
$18.10 |
$5.00 |
$5.15 |
Salary Thresholds for Exempt Employees
Additionally, there will be an increase in the salary thresholds for certain exempt employees in New York. Starting January 1, 2025, workers in New York City, Long Island, and Westchester who qualify for the executive or administrative exemption must earn at least $1,237.50 per week (or $64,350 per year) to maintain their overtime exemption. Workers elsewhere in the state will need to earn at least $1,161.65 per week (or $60,405.80 per year) to maintain their exemption. This change is crucial for employers to consider when classifying employees as exempt or non-exempt.
Minimum Wage Poster
Once New York releases the updated minimum wage poster for 2025, typically closer to December 31, it will be made available for download under the “Posters” section of the Members area of this site.
Questions
Contact us for resources, including exemption worksheets, to ensure compliance.
