As of December 31, 2019, the minimum wage in New York State has been set at $11.80 per hour, which is higher than the Federal Minimum Wage of $7.25 per hour. The previous New York State minimum wage was $11.10 per hour.
Future New York State Minimum Wage Increases.
On December 31, 2020, the New York State minimum wage will rise to $12.50 per hour. The following year, on December 31, 2021, it will increase again to an amount that will be announced by October 1, 2021. Increases will continue until the state rate hits an hourly rate of $15.00.1
NYS Minimum Wage Increase For Food Service Workers.
The minimum wage for tipped food service workers will also increase on December 31st, 2019. The wage increases from $7.50 per hour to $7.85 per hour - a $0.35 increase. With this, the tipped credit will increase from $3.60 to $3.95.
A tip credit allows you to pay tipped employees less than the minimum wage as long as tips bring their earnings up to that minimum amount. Basically, it allows you to lump together your employees’ tips and hourly wages to equal the minimum wage. The credit itself is the amount of money you do not have to pay in a particular pay period because that amount was earned in tips by your employee.
*Disclaimer: This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.