New York State Minimum Wage 2020 Rates

The New York State Minimum Wage Rates as of December 31, 2019, Up unto 2020, has been set at $11.80 per hour, which is higher than the Federal minimum wage of $7.25 per hour. Minimum wage laws are always set to favor the employee by establishing the federal or state minimum wage at whichever is the higher wage.

New York State Minimum Wage

History of New York’s Minimum Wage

 

The first New York State Minimum Wage was set at $1.00 per hour, which was after a general minimum wage that was established on October 1, 1960, before which minimum wage rates depended on the industry.

Since it’s an establishment in October 1960, the New York State Minimum Wage has further increased in spurts, seeing the first rapid increase occurring over a period of several years in the mid-to-late 1970s

Note, that the national minimum wage was established over two decades prior to this in 1938.

Over the years, New York is one of the many states who tend to have it’s minimum wage higher than the federal minimum wage, both for tipped and untipped workers. Be it as it may, a few states match federal minimum wage and even fewer mandate a minimum wage that is less than the federal minimum wage.

If a state’s minimum wage law makes an attempt at paying a rate that is less than the federal minimum wage law, the federal minimum wage law supersedes the state minimum wage law.

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As in the case of New York as a state that has a higher minimum wage than the federal minimum wage, the state minimum wage supersedes that of the federal requirement.

Future New York State Minimum Wage Increment

It is believed that come December 31, 2020, the New York State wage will increase to $12.50 per hour. Then the following year, on December 31, 2021, there will be another upward rise to an amount that will be announced by October 1, 2021. Subsequent increases will continue until the state rate, hits and hourly rate of $15.00.

New York City Minimum Wage

The minimum wage for businesses (11 employees or more) in New York City, is set at $15.00 per hour. For the smaller businesses (10 or fewer employees), the minimum wage will increase from $13.50 – $15.00 per hour on December 31, 2019.

Long Island & Westchester Minimum Wage

Also, Long Island and Westchester have a higher minimum wage rate than the rest of the state: $12.00 per hour until December 31, 2019, when it will rise to $13.00. Thus, the minimum wage in these regions will increase to $14.00 on December 31, 2020, and $15.00 on December 31, 2021.

Minimum Wage By Job Category

Note that the minimum wage and future increases differ for each category of the employee here are some of them;

For Food Workers

As approved by a state wage panel, the following minimum wage rates for fast food workers who work for a chain with 30 or more establishments includes;

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Fast Food Minimum Wage Rates for New York State, excluding New York City

  • $12.75 per hour, increasing to $13.75 on December 31, 2019:
  • $14.50 per hour on December 31, 2020:
  • $15.00 on July 1st

Fast Food Minimum Wage for New York City

  • $15.00 per hour.

New York Minimum Wage for Tipped Workers

The minimum wage for workers who get tips is paid under a different minimum wage structure in New York. The cash wage, or base service rate differs according to the size of the employing business as well as it’s location.

Note, if the tips are not sufficient to reach minimum wage, the employer is to pay the minimum wage for tipped workers.

Minimum Wage for App-Based Drivers

On December 4, 2018, the New York City Taxi and Limousine Commission (TLC) voted to set the nation’s first minimum pay rate for app-based drivers. The current rate is set at $17.22 per hour after expenses ($26.51 per hour gross pay) which went into effect on December 31, 2018.

As mentioned by the TLC, this increase raised pay by at least $9.600 per year for 90 percent of the drivers for high-volume app-based for-hire vehicle services in the city (Uber, Lyft, Via, and Juno).

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