NY Rings in the New Year with an Increase in the Minimum Wage
New York State’s minimum wage has increased to $8.75/hour as of December 31, 2014. In addition to this increase in the base minimum wage rate:
- The maximum tip credit employers can claim has increased. Employers may now take a tip credit of up to $3.75/hour worked by food service workers, such as waiters and bus persons. The maximum tip credit for other service employees in the hospitality industry, such as delivery personnel, will increase to $3.10/hour. For service employees outside the hospitality industry, such as car wash attendants and barbers, the maximum tip credit is now $1.30/hour for employees whose weekly average of tips received is between $1.30 and $2.15/hour and $2.15/hour for employees whose weekly average of tips received is $2.15/hour or more.
As always, all employees must make at least the minimum hourly wage for each hour worked when the amount paid by the employer and the tips they collect are totaled.
- The minimum salary that must be paid to most employees in New York who are exempt from New York’s minimum wage and overtime requirements as administrative or executive employees will increase to $656.25/week. This is significantly higher than the current federal salary requirement of $455/week.
An updated minimum wage workplace poster is available on the NYS Department of Labor’s website. A future increase in the minimum wage to $9.00/hour is scheduled for December 31, 2015.
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