Minimum hourly wages for nonexempt employees and minimum salaries for exempt employees in New York State are scheduled to increase on January 1, 2022. Employers should begin to make plans to ensure that their hourly wages for nonexempt employees and minimum salaries for exempt employees comply with these new requirements.
On January 1, 2022, the minimum hourly rate in Nassau County, Suffolk County and Westchester County increases from $14.00 to $15.00 an hour. The minimum hourly rate for the remainder of New York State increases from $12.50 to $13.20 an hour on January 1, 2022, and is subject to annual increases each year thereafter based on economic indices until it reaches $15.00 an hour for employment in those geographic areas. New York City already has a minimum hourly rate of $15.00 an hour.
The minimum salary for exempt employees in Long Island and Westchester also increases from $1,050 per week to $1,125 per week, or $58,500 per year, on January 1, 2022. The minimum salary for administrative and executive employees who are exempt from overtime pay requirements increases from $937 per week to $990 per week for the remainder of New York State. On January 1, 2022, the minimum salary for exempt employees in New York City remains at $1,125 per week, or $58,500 per year. Employees exempt from overtime pay requirements based on the professional exemption, such as doctors, lawyers and teachers, may not subject to the same minimum salary requirements as other exempt employees.
The New Jersey hourly minimum hourly wage rate also increases from $12.00 to $13.00 per hour on January 1, 2022, for most New Jersey employers. The minimum hourly rate for seasonal and small employers (fewer than 6 employees) in New Jersey increases from $11.10 to $11.90 per hour, and for long-term care facility staff, the rate increases from $15.00 to $16.00 per hour. The New Jersey hourly rate for tipped employees also increases from $4.13 to $5.13 per hour on January 1, 2022.
New York State allows employers in certain industries other than building service to satisfy the minimum wage by combining a cash wage paid by the employer plus a credit for tips the employee receives from customers. The minimum hourly rates New York employers must pay most tipped employees are as follows:
From December 31, 2021, through December 30, 2022, the minimum hourly rates that employers must pay to tipped workers are:
||Long Island and
|Remainder of NYS
||$12.50 Cash Wage
$2.50 Tip Credit
|$12.50 Cash Wage
$2.50 Tip Credit
|$11.00 Cash Wage
$2.20 Tip Credit
|Food Service Workers
||$10.00 Cash Wage
$5.00 Tip Credit
|$10.00 Cash Wage
$5.00 Tip Credit
|$8.80 Cash Wage
$4.40 Tip Credit
There are also limitations for tip credits in certain industries. Moreover, additional new 2021 federal regulation regarding tips and tip pools for certain employees go into effect December 28, 2021.
In addition, there are separate wage orders and increased minimum compensating requirements for employees in certain industries and for tipped employees. For example, the minimum wage for employees working for fast food chains increased to $15.00 an hour effective July 1, 2021. New York City also has recently enacted other work and compensation requirements regarding the employment of fast food workers there.
Connecticut’s minimum hourly rates increased to $13.00 an hour on August 1, 2021, and minimum hourly rates for employees in Connecticut are scheduled to increase to $14.00 per hour on August 1, 2022. Federal minimum wage and minimum salary requirements are substantially less than these state and city requirements.
Further, due to labor, supply and inflationary issues, employers are likely to be subject to demands for wage increases by new and existing employees in excess of these new minimum required amounts. Finally, employers should also review and update their compensation and work arrangements in 2022 for employees subject to union collective bargaining agreements, prevailing wage contracts and with individuals classified as independent contractors.
Employers should review their compensation and wage hour policies to ensure that they comply with these required wage increases and other compensation based on the location of the employees and the industry in which they are employed.