New York State has increased the minimum wage rates as of January 1, 2025. Workers across the state, including tipped workers, should take notice of how these increases may affect them.
Regional Minimum Wage Rates
The new minimum wage rates vary by region:
- New York City: $16.50 per hour
- Long Island and Westchester Counties: $16.50 per hour
- Remainder of New York State: $15.50 per hour
Impact on Tipped Workers
The minimum wage increase also affects tipped workers in the hospitality industry. Tipped workers considered Service Workers, must receive:
- NYC and Long Island/Westchester: $13.75 cash wage with a $2.75 tip credit
- Rest of NYS: $12.90 cash wage with a $2.60 tip credit
Tipped workers considered Food Service Workers, must receive:
- NYC and Long Island/Westchester: $11.00 cash wage with a $5.50 tip credit
- Rest of NYS: $10.35 cash wage with a $5.15 tip credit
Future Changes
Looking ahead, the state minimum wage is scheduled to increase by another $0.50 on January 1, 2026. Starting in 2027, annual increases will be based on the three-year moving average of the Consumer Price Index for Urban Wage Earners and Clerical Workers for the Northeast Region.
Wage Theft Prevention
Some employers may try to avoid paying overtime or regular hours at these higher wages. Some common ways employers avoid paying the minimum wage:
- Paying for some, but not all, hours worked
- Paying at a lesser hourly rate
- Failing to pay appropriate overtime
- Paying a day rate or
If you believe your employer is not paying you the correct minimum wage, you may have legal remedies available. Our experienced employment law attorneys can help protect your rights and ensure you receive the compensation you deserve.
