Since 2009, the federal minimum wage has been at $7.25 per hour. Recently however, New York State has made significant changes regarding the minimum wage, increasing it from $8.75 to $9 per hour. Further, under the new law, the minimum wage at fast-food chains with at least 30 locations nationwide, will continue climb in incremental steps. Its initial increase occurred on December 31, 2015. It is also required that employers post a Minimum Wage Information poster at their workplaces.
Moreover, the State has established a separate pay rate for fast-food workers in large chains. In response, restaurant owners have challenged the Department of Labor’s wage order, arguing it to be ‘arbitrary, capricious and contrary to law. At the time of this publication, the issue is pending before the court.
Bigger increases will be granted to tipped workers in New York. The hourly minimum wage will rise from $4.90, $5 or $5.65 to $7.50 an hour for tipped workers, such as waiters, depending on the type of establishment. State employees not working in New York city are seeing an increase to $9.75 while the minimum wage for workers in New York City is now $10.50. At fast-food chains with 30 or more restaurants nationally, workers’ wages will increase from $8.75 to $9.75. The chart below depicts the current minimum wage for the city, New York State as well as future scheduled increases.
|DATE||NEW STATE WAGE||NEW YORK CITY WAGE|
|January 1, 2017||$10.75||$12|
|January 1, 2018||$11.75||$13.50|
|January 1, 2019||$12.75||$15|
|January 1, 2020||$13.75||$15|
|January 1, 2021||$15||$15|
Employers and business owners should fully understand these new laws and regulations, particularly whether they are in compliance. Failure to do so could lead to significant liability. Should you have questions or concerns regarding these developments to the minimum wage, or related matters, please call Gilbert Law Group at 631.630.0100.
Contributed by Sakine Oezcan, Esq.