New York State has recently followed a pattern of increasing minimum wages each new year to keep pace with economic conditions and cost of living. That trend continues in 2026, with adjustments to both minimum wage rates and salary exemption thresholds taking effect on January 1. These changes, part of a multi-year schedule established by 2023 legislation, will impact employers across the state and require careful review to ensure compliance.
Minimum Wage Increases for 2026
Effective January 1, 2026, the minimum wage hourly rate in New York City, Long Island (including Nassau and Suffolk Counties) and Westchester County will increase to $17.00. The minimum wage hourly rate in the remainder of New York State will increase to $16.00. In total, the minimum wage hourly rates will increase as follows:
New York City, Long Island (Including Nassau and Suffolk Counties) and Westchester County
Minimum Wage$17.00Minimum Overtime Wage$25.50Fast Food Worker Wage$17.00Tipped Food Service Wage$11.35 ($5.65 Employer Credit)Tipped Service Wage$14.15 ($2.85 Employer Credit)Remainder of New York State
Minimum Wage$16.00Minimum Overtime Wage$24.00Fast Food Worker Wage$16.00Tipped Food Service Wage$10.70 ($5.30 Employer Credit)Tipped Service Wage$13.30 ($2.70 Employer Credit)Employers can generally offer tipped employees the lower minimum wage noted above so long as the employee earns tips that bring their earnings up to at least the minimum wage. In addition, credit allowances for meals, lodging and utilities, as well as required uniform maintenance pay, are increasing under the regulations.
The 2023 legislation and regulations provided express wage amounts only through 2026. Beginning on Jan. 1, 2027, the minimum wage is slated to be adjusted based on inflation — New York will consider a three-year moving average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region.
Salary Exemption Thresholds for 2026
Employees in the executive and administrative categories may be exempt from overtime requirements if they perform certain duties and their salary meets the following minimum thresholds, which are being increased for 2026:
New York City, Long Island (Including Nassau and Suffolk Counties) and Westchester County
Weekly Minimum$1,275.00 ($66,300.00 per year)Remainder of New York State
Weekly Minimum$1,199.10 ($62,353.20 per year)Please note that while New York also has requirements for classifying employees employed in a bona fide professional capacity, it does not have a minimum salary threshold for those employees. Employers considering professional capacity exemptions should thus be aware of the federal threshold for professional salaries, which is currently $684 per week ($35,568.00 per year).
What Employers Should Do
- Review and revise your payroll policies and procedures to ensure compliance with the updated wages for 2026.
- Ensure your employees are properly classified as exempt or non-exempt based on a review of their job duties and the salary threshold requirements.
Should you have questions or need advice regarding this or related matters, please reach out to a member of Harris Beach Murtha’s Labor and Employment Practice Group, including Daniel J. Palermo at (585) 419-8946 and dpalermo@harrisbeachmurtha.com; attorney Scott A. Elliott at (585) 419-8791 and selliott@harrisbeachmurtha.com; or the Harris Beach attorney with whom you most frequently work.
This alert does not purport to be a substitute for advice of counsel on specific matters.
Harris Beach Murtha’s lawyers and consultants practice from offices throughout Connecticut in Bantam, Hartford, New Haven and Stamford; New York state in Albany, Binghamton, Buffalo, Ithaca, New York City, Niagara Falls, Rochester, Saratoga Springs, Syracuse, Long Island and White Plains, as well as in Boston, Massachusetts, and Newark, New Jersey.
