New York Minimum Wage

The regular rate of pay for employees must be at least $7.25 per hour unless they are either an "exempt" employee within the meaning of applicable law or the employer is allowed to take a credit or allowance against the minimum wage rate.

The Fair Labor Standards Act (FLSA) is the Federal law which sets minimum wage, overtime, recordkeeping, and youth employment standards. The current federal minimum wage is $7.25 per hour. FLSA covers individual workers who are "engaged in commerce or in the production of goods for commerce." More than 130 million American workers are protected (or "covered") by the FLSA, which is enforced by the Wage and Hour Division of the U.S. Department of Labor (DOL). Domestic service workers (such as housekeepers, full-time babysitters, and cooks) are normally covered by this federal law.

The N.Y.S. General Industry Minimum Wage Act states that all employees in New York State, including most domestic workers, must be paid at least $7.25 per hour. The N.Y.S. minimum wage rate is linked to the federal minimum wage, and therefore any increase in the federal wage will result in an increase in New York's minimum wage. The minimum wage cannot be reduced by expenses incurred by an employee in carrying out duties assigned by an employer.

Under N.Y.S. law, the minimum wage rate may be offset by certain allowances, including tips, meals, lodging and in some cases uniform allowances. The applicable allowances for N.Y.S. employers to take against the minimum wage rate are set forth in Minimum Wage Orders issued by the N.Y.S. Department of Labor for the following industries and occupations:

  • Hospitality (covers restaurant and hotel workers, among others);
  • Building Service;
  • Miscellaneous Industries and Occupations;
  • Farm Workers; and
  • Non-Profitmaking Institutions

The Miscellaneous Industries and Occupations Wage Order provides for employers to take the following wage allowances against the $7.25 per hour minimum wage rate, subject to the conditions set forth below:

  • Tip Allowances: Tips, or gratuities, may be considered a part of the $7.25 minimum wage rate, subject to the following conditions: (i) the particular occupation in which the employee is engaged is one in which tips have customarily and usually constituted a part of the employee's remuneration; (ii) substantial evidence is provided that the employee received in tips at least the amount of the allowance claimed. An example of substantial evidence is a statement signed by the employee that he actually received in tips the amount of the allowance claimed; and (iii) the allowance claimed by the employer is recorded on a weekly basis as a separate item in the wage record and cannot exceed the following hourly rates: $1.10 per hour (non-profit); $1.75 per hour (profit).
  • Meals: $2.50 per meal
  • Lodging: $3.10 per day (profit); $5.80 per day (profit/residence with utilities); $4.30 per day (non-profit); $9.00 per day (non-profit/residence with utilities)

Uniform Allowances: No allowance for the supply, maintenance or laundering of required uniforms is permitted as part of the minimum wage rate. Where an employee purchases a required uniform, he/she must be reimbursed by the employer for the cost thereof not later than the time of the next payment of wages. Where an employer fails to launder or maintain required uniforms for any employee, it must pay such employee the following compensation, in addition to the minimum wage rate: $9.00 per week (over 30 hours); $7.10 per week (20 to 30 hours); $4.30 per week (less than 20 hours).

If you have any questions or need more information concerning your specific wage and hour issues, please call us at (914) 949-2700 or use our email form to get in touch with New York Labor and Employment Attorneys.