The minimum wage in New York is set to increase to $17 per hour for most employers by January 1, 2026. The minimum wage will also be indexed to inflation starting in 2027, meaning it will increase automatically each year based on the cost of living. Employers may need to take steps to begin to prepare for the annualized increases.
The minimum wage will increase in New York through 2026 as follows:
| Year | Minimum Wage |
| Current | $15 per hour (NYC, Long Island, and Westchester County) $14.20 per hour (remainder of New York State) |
| 2024 | $16 per hour (NYC, Long Island, and Westchester County) $15 per hour (remainder of New York State) |
| 2025 | $16.50 per hour (NYC, Long Island, and Westchester County) $15.50 per hour (remainder of New York State) |
| 2026 | $17 per hour (NYC, Long Island, and Westchester County) $16 per hour (remainder of New York State) |
Exempt Salary Level Increases
The New York State Department of Labor has not yet announced the new salary thresholds for exempt (Administrative and Executive) employees that will go into effect in 2024 and beyond. However, it is expected that the salary thresholds will increase, in line with the minimum wage increases. Because the salary levels have been historically calculated at 75 times the minimum wage, it is projected that the salary level will increase as follows:
| Year | Salary Level (Administrative and Executive Exemptions) |
| Current | $1,125 per week ($58,500 per year) (NYC, Long Island, and Westchester County) $1,064.25 per week ($55,341 per year) (remainder of New York State) |
| 2024 | $1,200 per week ($62,400 per year) (NYC, Long Island, and Westchester County) $1,125 per week ($58,500 per year) (remainder of New York State) |
| 2025 | $1,237.50 per week ($64,350 per year) (NYC, Long Island, and Westchester County) $1,162.50 per week ($60,450 per year) (remainder of New York State) |
| 2026 | $1,275 per week ($66,300 per year) (NYC, Long Island, and Westchester County) $1,200 per week ($62,400 per year) (remainder of New York State) |
Next Steps
Employers will need to review and adjust their payroll and budgets to accommodate the higher wages. Employers should prepare to make any necessary changes for 2024 by December 31, 2023. Updates might result in increasing an employee’s hourly wage or salary or reclassifying exempt employees to non-exempt if they will no longer meet the exemption salary requirement.
To comply with the New York Wage Theft Prevention Act, updated pay notices may need to be provided to employees who are being reclassified from exempt to non-exempt.
HR Works will continue to monitor this topic and provide updates as they become available.
