Increases in the minimum wage in New York state go into effect on New Year’s Day, Jan. 1, 2025. The basic minimum wage in Westchester, Long Island and New York City rises to $16.50 per hour. The minimum overtime rate rises to $24.75 per hour. In the rest of New York state the minimum hourly wage goes to $15.50 per hour with overtime becoming $23.25 per hour. The minimum wage for home care aides in Westchester, Long Island and New York City goes up to $19.10 per hour. In the rest of the state, it will become $18.10 per hour.
The minimum wage is scheduled to increase by another $0.50 in 2026 and then increase annually starting in 2027 at a rate determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region of the U.S.
In 1960, New York state established a general minimum wage of $1 per hour. Prior to 1960 there were different minimum wages for different industries in the state. By 1970, the minimum wage had grown to $1.85 an hour. In 1980, it became $3.10 and by 1990 it was $3.80. In 2000, the minimum wage rose to $5.15 an hour and in 2017 it hit $10 an hour.
Employers whose employees receive tips as part of their compensation are allowed to take a credit against a portion of the minimum wage they have to pay. As of Jan. 1, the minimum cash hourly wage paid to food service workers in Westchester, Long Island and New York City becomes $11 an hour. For other service workers outside of the food industry it is $13.75 an hour.
In discussing the new round of minimum wage increases, Gov. Kathy Hochul said, “Putting money back in your pockets has been the focus of my first three budgets, and that includes increasing minimum wage for the lowest earners across the state. With rising costs of living, this increase will help to lighten the burdens of inflation for New Yorkers while providing businesses with the time needed to adjust.”
New York State Department of Labor Commissioner Roberta Reardon explained, “By gradually increasing wages for the lowest earners, we are ensuring businesses can adjust to the change while also helping more families make ends meet.”
