It was on the 3rd of May that Kathy Hochul, Governor of New York brought forward a new law that raised the minimum wage in New York for almost all employees, commencing from the upcoming year, that is the 1st of January, 2024, through the year 2026. This law has been enacted as a part of the budget legislation of the state.
The minimum wage will further be increased beginning in the year 2027 and beyond and is going to be indexed to the consumer price index, as part of the budget legislation of the state.
Here's everything you need to know about the minimum wage increase law.
From 2024 to 2026
The minimum wage of the state will be increasing for every employee. However, home care aides and a few other industry employees will be exceptions to this.
| Date of effect | For Long Island, Westchester, and New York City, | For rest of the New York |
| At present | $15 | $14.20 |
| 1st January, 2024 | $16 | $15 |
| 1st January, 2025 | $16.50 | $15.50 |
| 1st January, 2026 | $17 | $16 |
Prior to the move, the new rates used to differ on the basis of employer size, but the situation is not the same this time.
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Wage increase from 2027
The legislation says that from the year 2027, the minimum wage increase is going to be indexed to the United States Department of Labor (CPI-W)- Consumer Price Index for Urban Wage Earners and Clerical Workers for the Northeast Region.
From the year 2027, the minimum wage is going to increase on the basis of CPI-W's three-year moving average. The minimum wage, however, is not necessarily going to increase every year from 2027.
For instance, in case the CPI-W is negative for the most recent period, the minimum wage is not going to increase.
The Department of Labor of the state will need to publish the adjusted minimum wage rates annually on or prior to the 1st of October, for rates effective from the 1st of January the next year.
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Exempt salary thresholds
A blow to the exempt salary threshold for executive and administrative employees will also be led by the legislation. However, the actual amounts have not been announced yet. In case the salary basis threshold of 75 times the minimum wage stays intact, the exempt salary threshold for the year 2024 for employees like that in Long Island, Westchester, and New York City will increase to $1,200 weekly from $1,125 weekly. In the same way, the exempt salary threshold for the rest of the state will be increasing in the year 2024 to $1,124 weekly from $1,064.25 weekly.
What's ahead?
The employers in New York employing minimum wage workers must get ready to adhere to the minimum wage increase starting from the upcoming year. They should be updating their budgets to avoid end-moment hassle. Employers having exempt administrative and executive employees must determine if they should be increasing their salaries in order to retain the exemption, or should they be reclassify them as nonexempt employees who have a right to get paid for overtime.
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