New York State Minimum Wage Set to Increase in 2024

On May 3, 2023, Governor Kathy Hochul signed the New York State 2024 Budget Agreement into law, which contained increases to the State's minimum wage. New York State's minimum wage rate is divided into two regions: (1) "Downstate," which consists of New York City (New York, Kings, Queens, Bronx, and Richmond Counties), Nassau County, Suffolk County, and Westchester County; and (2) "The remainder of the State."

The following chart reflects the new minimum wage rate, which is set to go into effect on January 1, 2024:

In contrast to previous years, the new minimum wage rates apply to all New York employers, regardless of the employers' size. In addition, starting January 1, 2027, increases to the State's minimum wage rates will be based on a three-year average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). However, there will be no increase in the minimum wage if: (a) The CPI-W for the preceding year is negative; (b) New York State unemployment rate increases by one-half percent or more; or (c) The total non-farm employment statewide (measured seasonally) decreases. The Department of Labor is required to publish future adjusted minimum wage rates no later than October 1^st of each year.

The State's Budget Agreement did not directly address the impact of the minimum wage increases on exempt employees (i.e., executive and administrative employees); however, the legislation did mandate that the Commissioner increase all monetary amounts in the same proportion as the increases to the hourly minimum wage. Historically, the exempt employee salary threshold has been set at 75 times the minimum wage rate. Accordingly, the following chart is used to preview the potential increases to the weekly salary requirement for exempt employees: