New York City is one of the most expensive cities in the world, but it also has one of the highest minimum wages. In fact, if you’re an employee in New York City, your minimum wage is $15 per hour. This means that if you’re a full-time employee working 40 hours per week and 52 weeks a year (which is more than legal), you’ll make $31,200 annually. That’s almost double the federal poverty level for a family of two ($16,460).
However, there are some exceptions to this rule: The minimum wage for tipped workers is only $8.65 per hour. If you work in a restaurant as a bartender or waiter, your employer can pay you less than minimum wage as long as they make up for it by tipping you out at least $7.50 per hour (this practice is called “tip pooling”). This means that if your employer doesn’t tip out enough in tips to make up for what they’re paying below minimum wage—say $10 an hour—then your employer must still pay at least $2.85 per hour above the minimum wage so that they don’t go over budget on their payroll costs each month!
Minimum Salary In New York
In keeping with the gradual increase in the State’s minimum wage levels, the new tiered rates across the State, effective December 31, 2021, are listed below. The increases depend on employer size and location. The minimum wage rate for New York City employers remains $15 per hour for all employers.
| Size/Location of Employer | Minimum Wage as of December 31, 2021 |
| New York City, 11 or more employees | $15.00 |
| New York City, 10 or fewer employees | $15.00 |
| Long Island and Westchester employers, regardless of size of employer | $15.00 |
| Remainder of state, regardless of size of employer | $13.20 |
Salary Threshold for Exempt Employees (2022)
Along with the increase to the minimum wage, the amounts that employers can deduct from employees’ wages for items such as uniform allowances and meals are also set to change on December 31. The Department of Labor on its website has summarized the revisions applicable to hospitality employers, employers in “miscellaneous industries,” and employers in the “building service industry.” Employers should consult these summaries to determine how much they can deduct for a uniform allowance and claim for meal, lodging and tip credits.
The tiered salary thresholds required for exempt status are also rising effective December 31, 2021. Like the minimum wage, the salary levels depend on employer size and location. They are as follows:
| Size/Location of Employer | Salary Threshold as of December 31, 2021 |
| New York City, 11 or more employees | $1,125.00 per week ($58,500.00 per year) |
| New York City, 10 or fewer employees | $1,125.00 per week ($58,500.00 per year) |
| Nassau, Suffolk, and Westchester counties, regardless of size of employer | $1,125.00 per week ($58,500.00 per year) |
| Remainder of State, regardless of size of employer | $990.00 per week ($51,480 per year). |
The statewide $15 minimum wage was enacted as part of the 2016-17 State Budget. The plan takes the needs of workers and businesses alike into account.
As of December 31, 2016, the first in a series of wage increases went into effect. Rates differ based on region and industry because the increases are calibrated to provide businesses ample time to adjust.
| Location | 12/31/16 | 12/31/17 | 12/31/18 | 12/31/19 | 12/31/20 | 12/31/21* |
|---|---|---|---|---|---|---|
| NYC – Big Employers (of 11 or more) | $11.00 | $13.00 | $15.00 | |||
| NYC – Small Employers (10 or less) | $10.50 | $12.00 | $13.50 | $15.00 | ||
| Long Island & Westchester | $10.00 | $11.00 | $12.00 | $13.00 | $14.00 | $15.00 |
| Remainder of New York State Workers | $9.70 | $10.40 | $11.10 | $11.80 | $12.50 | $13.20* |
*Future increases will be based on an indexed schedule to be set by the Director of the Division of the Budget in consultation with the Department of Labor following an annual review of the impact.
