On March 29, 2013, New York Governor Andrew Cuomo signed into law a state budget for the 2013-2014 fiscal year, N.Y. State Senate Bill S02607D, N.Y. State Assembly Bill No. A03007D (“the Act”). The Act includes a provision, Part P, which, over a period of three years, raises New York State’s minimum wage from $7.25 per hour to $9.00 per hour.
This is the first increase in New York’s minimum wage since July 2009, when the Empire State’s minimum wage was increased to equal the current federal minimum wage of $7.25 per hour.
Specifically, Part P of the Act amends the New York State Minimum Wage Act, N.Y. Labor Law § 652, to provide that New York’s hourly minimum wage will increase to:
- $8.00 on and after December 31, 2013;
- $8.75 on and after December 31, 2014; and
- $9.00 on and after December 31, 2015.
In contrast to a March 2013 bill, N.Y. State Assembly Bill No. A00038A, which the State Assembly passed but which was not enacted into law, the Act does not index, to inflation, future increases in New York’s minimum wage.
Further, the new legislation does not raise the minimum wage applicable in New York to food service workers and service employees of restaurants and hotels.
Presently, food service workers in New York must receive a minimum wage of $5.00 per hour, and credit for tips must not exceed $2.25 per hour, provided that the total of tips received plus the wages equals or exceeds $7.25 per hour. 12 N.Y.C.R.R. § 146-1.3(b).
Similarly, service employees of restaurants and hotels in New York currently must receive a minimum wage of $5.65 per hour, and credit for tips must not exceed $1.60 per hour, provided that the total of tips received plus wages equals or exceeds $7.25 per hour. 12 N.Y.C.R.R. § 146-1.3(a).
The Act does direct the New York State Commissioner of Labor to appoint a Wage Board to inquire into, and recommend, any increases in the minimum wage applicable in New York to food service workers and service employees of restaurants and hotels.
According to the National Conference of State Legislatures, once the Act’s December 31, 2013 increase goes into effect, New York will join 18 other states with minimum wages higher than the federal minimum wage of $7.25 per hour.
Call the Law Offices of David S. Rich, LLC at (212) 209-3972 to speak with a knowledgeable labor and employment lawyer about ensuring that your company complies with overtime pay and other wage and hour laws, or to retain a skilled overtime attorney to defend your company in unpaid overtime lawsuits or other wage and hour litigation.