With 2024 upon us, New York employers must prepare for scheduled minimum wage increases, tip credit changes, meal credit changes, and increases to the exempt salary threshold. Notably, unlike in the past when such changes went into effect on December 31 of the preceding year, the changes will go into effect on January 1, 2024.

Please note the following new minimum wage and overtime rates, tip credits, meal credits, and exempt salary thresholds:

All Employers



NYC, Nassau, Suffolk & Westchester:

Rest of State (Outside NYC, Nassau, Suffolk & Westchester):

Tipped Food Service Workers – Restaurant/Hospitality Industry

The term “food service worker” applies to any tipped employee who is primarily engaged in the serving of food or beverages to customers. Examples of “food service workers” in the restaurant industry include wait staff, bartenders, captains, and bussing personnel. Provided that the food service worker’s weekly tips plus wages equals or exceeds the basic minimum hourly wage rate, tip credits towards the wages of tipped food service worker may be taken as follows:

NYC, Nassau, Suffolk & Westchester – All Employers

Rest of the State (Outside NYC, Nassau, Suffolk & Westchester):

Tipped Service Employees (Non-Food Service Workers)- Restaurant/Hospitality Industry

The term “service employee” applies to any tipped employee other than a “food service worker” or “fast food employee.” Examples of “service employees” in the restaurant industry are delivery persons, coat check employees, and hosts. Provided that the tipped service employees’ weekly average of tips is at least the hourly Minimum Tip Threshold rate listed below, and the weekly tips received plus wages equals or exceeds the basic minimum hourly wage rate, tip credits towards the wages of tipped service employees may be taken as follows:

NYC, Nassau, Suffolk & Westchester:

Rest of the State (Outside NYC, Nassau, Suffolk & Westchester):

Meal Credits - Restaurant/Hospitality Industry 

Exempt Employees

In addition, in order to be eligible for the executive or administrative exemptions from overtime, effective January 1, 2024, employees must be paid the amounts set forth below. 

As necessary, employers should issue new Notice of Pay Rate forms to your employees as soon as possible reflecting the effective date of the new rate of pay as January 1, 2024.

At the time of publication, apart from the minimum wage, these numbers are merely proposals. However, we anticipate that they will be adopted later this month prior to the January 1, 2024 effective date. 

 *           *           *

If you have questions or would like additional information, please contact our Labor & Employment attorneys or the primary EGS attorney with whom you work.