A Look Back At Wage Increases In New York In The Mid-2010s
The increases in New York’s minimum wage rates in the mid-2010s led to a slew of changes to the state’s wage orders.
As a reminder, New York’s minimum wage were to increase from the current rate of $7.25 per hour as follows:
December 31, 2013: $8.00 per hour;
December 31, 2014: $8.75 per hour;
December 31, 2015: $9.00 per hour.
1. Overtime Rate
As a result of the scheduled increases in the minimum wage, the overtime rate (calculated at 1.5 times the minimum wage for hours worked over 40 in a week) for minimum wage employees were to increase as follows:
December 31, 2013: $12.00 per hour;
December 31, 2014: $13.13 per hour;
December 31, 2015: $13.50 per hour.
2. Tipped Minimum Wage/Tip Credit
a. Hospitality Industry
Hospitality industry employers was not set for an increase in the tipped minimum wage. Hospitality industry workers could still be paid the current cash wage of $5.00 per hour for food service workers (such as servers, runners, bartenders and bussers), and $5.65 per hour for service employees (such as deliverymen and bathroom attendants).
However, the employers’ tip credit for eligible employees were to increase due to the new minimum wage rates. The tip credit was to be $3.00 per hour for food service workers, and $2.35 per hour for service employees. Additionally, overtime rates would rise to $9.00 per hour for food service workers and $9.65 for service employees.
b. Non-hospitality Industries
Employers outside the hospitality industry would see increases in the tipped minimum wage.
The cash wage for tipped workers outside of the hospitality industry was increasing from the current rate of $5.50 per hour to $6.05 per hour for employees earning more than $1.95 per hour on average in tips, and to $6.80 per hour for employees earning an average of $1.20-$1.95 per hour in tips.
3. Exempt Employees
The minimum weekly salary for exempt executive administrative and professional employees was also increasing from the current rate of $543.75 per week as follows:
December 31, 2013: $600.00 per week;
December 31, 2014: $656.25 per week;
December 31, 2015: $675.00 per week.
Employers needed to be aware of the coming changes to the wage orders in order to ensure compliance with the New York Labor Law. Moreover, although the burden is on employers to comply with the changes in the law, employees also had to be cognizant of their rights under the applicable wage orders.
Darren Rumack is an associate at the Klein Law Group P.C., which represents employees in all areas of employment discrimination and unpaid wages law, workers’ compensation, and Social Security Disability. The Klein Law Group P.C. is located at 11 Broadway, Suite 960, New York, NY 10004 and can be reached at 917-639-5350.
