On March 29, 2013, New York Governor Andrew Cuomo signed legislation that will increase the minimum hourly wage in New York in three phases.  This legislation, identified in New York Labor Law section 652, lists the wage increases according to the following schedule:

  • December 31, 2013: Increase to $8.00 per hour from $7.25 per hour
  • December 31, 2014: Increase to $8.75 per hour from $8.00 per hour
  • December 31, 2015: Increase to $9.00 per hour from $8.75 per hour

Effect on Tipped Employees

While the minimum wage for tipped employees is not scheduled to increase, the Tip Credit amount will rise at the same rate as the minimum wage ($0.75 on 12/31/13, $0. 75 on 12/31/14, and $0.25 on 12/31/15).

For example, food service workers can continue to be paid at $5.00 per hour, but the tip credit will increase to $3.00 per hour on 12/31/13.  That means that these workers will need to earn at least $3.00 in tips for each hour worked in order for the employer to pay them at $5.00 per hour.
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