The New York Legislature and Governor Cuomo have reached a tentative agreement to increase the state’s hourly minimum wage. Final details of the deal are being fleshed out, but it appears New York will see minimum wage increase from $7.25 to around $8 per hour in 2014, $8.75 in 2015 and $9 by 2016.
If implemented, New York would become the nineteenth state with a minimum wage higher than the federal minimum of $7.25. The hike is slated to be passed together with the state’s new budget due before April 1.
New York employers should evaluate current pay practices to anticipate the impact a minimum wage increase will have on operations and to ensure compliance with federal and New York minimum wage and overtime requirements. Counsel may assist employers in determining whether any exceptions to minimum wage requirements are available.