New York Governor Andrew Cuomo recently signed legislation enacting a statewide $15 minimum wage plan. The state joins California with the highest minimum wage in the nation. This increase is the second significant increase in wages within three months. As will be seen below, the increases are complicated and may be difficult for employers to implement.
As of December 31, 2015, the Minimum Wage Act (Article 19 of the New York State Labor Law) required that all employees in New York State receive at least $9.00 per hour, including domestic workers.
Wage Orders
Additionally, Regulations known as “Wage Orders” set additional requirements that are industry specific:
As of December 31, 2015, the Minimum Wage for individuals working in the ‘fast food industry’ is $10.50 per hour in New York City, and $9.75 per hour in the rest of the state.
As of December 31, 2015, the Minimum Cash Wage for Tipped Workers in the Hospitality Industry is $7.50 per hour if they earn enough in tips.
As of December 31, 2015, the Minimum Wage for other Tipped Workers is $7.65 per hour if they earn at least $1.35 per hour in tips, or $6.80 per hour if they earn at least $2.20 per hour in tips.
As of December 31, 2015, the Minimum Wage for all other workers is $9.00 per hour.
For workers in New York City employed by large businesses (those with at least 11 employees), the minimum wage would rise to $11 at the end of 2016, then another $2 each year after, reaching $15 on December 31, 2018.
For workers in New York City employed by small businesses (those with 10 employees or fewer), the minimum wage would rise to $10.50 by the end of 2016, then another $1.50 each year after, reaching $15 on December 31, 2019.
For workers in Nassau, Suffolk and Westchester Counties, the minimum wage would increase to $10 at the end of 2016, then $1 each year after, reaching $15 on December 31, 2021.
For workers in the remaining counties of the state, the minimum wage would increase to $9.70 at the end of 2016, then another .70 each year after until reaching $12.50 on 12/31/2020. Thereafter, it will continue to increase to $15 on an indexed schedule to be set by the Director of the Division of Budget (DOB) in consultation with the Department of Labor.
What’s next?
Beginning in 2019, the State DOB Director will conduct an annual analysis of the economy in each region and the effect of the minimum wage increases statewide to determine whether a temporary suspension of the scheduled increases is necessary. That analysis will be submitted to the Department of Labor by the Division of Budget for possible further action.
In addition to the substantial economic burden that these increases pose for NY employers, the layering of rates and scenarios, as well as differing geographic impacts, will add to the complexity of compliance.
What about fast food chains?
The concept of “fast food chain” wage requirements is new. New York provides the following advice concerning the parameters applied to this targeted employer group:
Q: What is a Fast Food Establishment?
A: A Fast Food Establishment is any business that meets the following criteria:
Primarily serves food or drinks, including coffee shops, juice bars, donut shops, and ice cream parlors; and
Offers limited service where customers order and pay before eating, including restaurants with tables but without full table service and places that only provide take-out service; and
Is part of a chain of 30 or more locations, including individually-owned establishments associated with a brand that has 30 or more locations nationally.
The list above summarizes several definitions that are published in 12 NYCRR § 146-3.13, which should be consulted for the full and complete terms.”
The effects of these increases and whether these increases will truly benefit the workers to receive such increases, remains to be seen. Many employers that operate with thin profit margins may either close or find ways to reduce labor costs. The unfortunate result may be less employment and no net increase in the goal of providing workers with a “living wage.”
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract
Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Can You Own Part of a New Jersey Business Without a Written Agreement?
Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Monmouth County's Next Development Wave: What Developers and Investors Need to Know
Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]
Are Your Conversations with AI Shielded from Discovery? Courts Are Split
Whether a client’s prompts to a generative AI tool and the documents it produces are protected from disclosure depends on the case type, who claims protection, and whether counsel was involved. In United States v. Heppner, a New York federal judge ruled that a criminal defendant’s communications with an AI platform were protected by neither […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
