As of 2026, the standard minimum wage in New York State is $16.00 per hour. However, determining the correct rate for your specific employees requires navigating separate rules for different jurisdictions, industries, and shift types.
What you’ll learn
What you’ll learn
Key takeaways
- The current minimum wage in New York State is $16.00/hour
- NYC, Long Island, and Westchester all have higher minimum wage rates
- Minimum wage in New York will continue rising in the years to come
- Staying compliant with changes to the minimum wage in New York can be made easier with payroll software
In this article, we’ll demystify New York wage laws, look at what the current rates are, and explore what steps you can take as an employer to ensure you are complying with all New York minimum wage regulations.
What is the New York minimum wage today?
The New York minimum wage in 2026 is $16.00 per hour
The minimum for employees to be salaried exempt is:
- $1,275.00/week in NYC, Long Island, or Westchester or
- $1,199.10/week elsewhere in New York State
Have employees across state lines in New Jersey or Connecticut? View minimum wage laws by state.
Regional variations: NYC, Long Island, Buffalo, and beyond
As we briefly noted above, there are some variations to minimum wage rates in select areas of New York. Here is a breakdown of the minimum pay differences.
| Topic | New York State | New York City | Westchester | Long Island |
| Standard minimum wage | $16.00 | $17.00 | $17.00 | $17.00 |
| Minimum wage for tipped service employees | $13.30 cash + $2.70 tip credit | $14.15 cash + $2.85 tip credit | $14.15 cash + $2.85 tip credit | $14.15 cash + $2.85 tip credit |
| Minimum wage for tipped food service employees | $10.70 cash + $5.30 tip credit | $11.35 cash + $5.65 tip credit | $11.35 cash + $5.65 tip credit | $11.35 cash + $5.65 tip credit |
Is $15 an hour or $25 an hour a good minimum wage in New York?
It is the state’s job to set the minimum wage, but be mindful as an employer to keep wages fair. For instance, not all areas of New York have the same cost of living. In Buffalo, the cost of living is 44% less than the state average, whereas in Long Island it’s 178% higher.
Total compensation is also a consideration. While New York workers’ compensation laws require you to provide workers’ comp coverage, and healthcare is also mandated, optional benefits can make a minimum wage job better. For instance, you might offer:
- Retirement plans like 401(k)s and NY Secure Choice Savings
- Paid holidays & vacation time
- Extra insurance like dental, disability, and HSAs
What is the 10-hour rule in NY?
In New York, when you have employees work a shift longer than 10 hours or work split shifts, you will need to pay them an extra hour’s pay at the minimum wage rate for your area.
Let’s look at two examples:
- Linda works as a receptionist at a busy dental office for 10 hours on the clock plus meals/breaks.
- Jeremy is a bartender who works the rushes from 11 AM – 2 PM and 6 PM to midnight.
In both examples, the employees would qualify for the extra hour of minimum wage pay. It’s worth noting that this extra pay is on top of any weekly overtime pay earned.
Did the New York state minimum wage go up in 2026?
Yes, the minimum wage in New York increased by $0.50 in 2026, per a three-year plan agreed to in 2023. This brought the state-wide minimum wage up to $16/hour and increased the minimum wage in NYC, Long Island, and Westchester to $17/hour.
Starting in 2027, the minimum wage in New York will be tied to inflation. New York minimum wage increases, capped at 3%, will be based on the US Bureau of Labor Statistics Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region.
However, these increases may be suspended during certain off-ramp situations, like a rise in unemployment.
Tipped wage rules and employee classifications in New York
Minimum wage rules differ for tipped employees in New York. For employers, there are two parts to wage calculations: cash wage and tip credit. For instance, the $17.00 minimum wage in New York City can be calculated as $11.35 in cash wages plus $5.65 tip credit for food service workers.
However, there are strict limitations and guidelines governing the use of tipped worker classifications and tip credits. For instance, average hourly tips in a week must be above minimum thresholds (e.g., $3.55/hour for NYC restaurants).
Additionally, you can only use the credit if an employee spends 80% or more of their shift performing tipped work. If a waitress spends two hours of her eight-hour shift working in the kitchen, you’ll have to pay her the full minimum wage for the shift, with no tip credit.
Compliance essentials for New York employers
In New York, ignoring minimum wage laws can result in penalties and fines, Here are some steps you can take to ensure you are in complete compliance with New York’s rules.
- Ensure all employees are classified correctly. For example, fast food workers do not count as food service employees.
- Physically post information regarding New York’s minimum wage laws in the workplace, including any required industry-specific information.
- Inform employees of their wage rate, including how wages are calculated if they are tipped workers. This notification needs to be written and provided upon hiring or a change in classification, and you need to collect a signed acknowledgment.
- Report all wages earned, especially tips. No averages, projections, or estimates are allowed.
- Maintain accurate payroll records, including hours worked, wages paid, taxes withheld, and deductions applied. Records need to be kept for six years.
Impact of New York minimum wage laws on payroll and benefits
As the minimum wage increases, so too will your payroll costs. As an employer, you’ll need to budget for these changes and make staffing and price adjustments as needed.
Additionally, overtime pay rates will increase for minimum-wage workers. For instance, when minimum wage was $15.50/hour in 2025, the overtime rate (time and a half) was $23.25/hour. In 2026, since the minimum wage is $16/hour, the overtime rate is $24/hour.
An increase in pay may also put employees over the income limits for certain government benefits. This can lead to greater adoption of employer-sponsored benefits, like healthcare coverage.
The changes to the minimum wage mean keeping a close eye on all aspects of payroll. Errors such as misclassifying employees, failing to increase pay, or applying the wrong regional rate could cause serious problems. Also, remember that remote employees need to be paid the rate where they live, not where you operate your business.
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Manage New York’s minimum wage rules with confidence
Navigating New York’s wage requirements is about more than just hitting a single hourly rate. With varying regional wages, specific salary thresholds for exempt workers, and strict tip credit rules, getting payroll right contributes to a solid workplace culture and protects your business from compliance issues. Because NY adjusts these rates annually and will soon tie them directly to inflation, employers will want to keep a close eye on the rules as they change.
Fortunately, OnPay makes it easy to automatically adjust pay rates across different regions, handle exemptions, and manage your payroll taxes. This gives you the freedom to focus on growing your business, confident that your team is paid accurately and on time. Get started with OnPay today.
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Jon Davis is the Sr. Content Marketing Manager at OnPay. He has over 15 years of experience writing for small and growing businesses. Jon lives and works in Atlanta.