On March 29, 2013, New York Governor Andrew Cuomo signed
legislation that will raise the minimum hourly wage in New York in
three increments, commencing on December 31, 2013. The legislation,
which is codified at New York Labor Law section 652, schedules
increases in the New York State minimum wage as follows:
December 31, 2013: Increase to $8.00 per hour from $7.25 per
December 31, 2014: Increase to $8.75 per hour from $8.00 per
December 31, 2015: Increase to $9.00 per hour from $8.75 per
Increase in Minimum Wage for Tipped Employees
The legislation will also increase the minimum hourly wage for
service employees and food service workers who routinely receive
tips. The New York State Commissioner of Labor has been tasked with
issuing a new wage order that will govern food service workers and
service employee. This new wage order must address the minimum
hourly cash wage for tipped employees, as well as allowances for
meals and lodging.
If the Commissioner fails to issue the New Wage Order before the
first increase takes effect on December 31, 2013, the minimum
hourly wage paid to food service workers and service employees, as
well as the maximum tip credit, will both increase proportionally
with the minimum wage increases. Service employees currently must
be paid a minimum hourly wage of $5.65 per hour, with a tip credit
of up to $1.60 per hour. Food service workers must be paid a
minimum hourly wage of $5.00 per hour with a tip credit of up to
$2.25 per hour. If the Wage Order governing these industries is not
reissued before December 31, 2013, the minimum hourly wage will
increase to $6.25 per hour and the tip credit would increase to
$1.75 per hour for service employees. The minimum hourly wage for
food service workers would increase to $5.50 per hour and the
maximum tip credit would increase to $2.50 per hour.
Employers with employees earning less than $8.00 per hour and
employers in the hospitality and service industries who take
allowances for tips, lodging and meals from employee wages should
begin planning compliance with the new minimum wage rates well
before the effective date of December 31, 2013.
Littler will provide an update when the Commissioner issues the
required wage order.
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Effective January 1, 2015, certain employers became subject to the employer mandate of the Patient Protection and Affordable Care Act, and thus subject to liability under the ACA Employer Shared Responsibility provisions.