Attention Business Owners and HR Professionals. It’s Larry Kagan from Baron Payroll with another red hot topic for year-end. NYS min wage has increased again starting December 31, 2019. Unlike most other states that have just one min wage rate, NYS has multiple min wage rates.
The new min wage rate for Nassau, Suffolk & Westchester is $13 per hour. For NYC and the 5 Boros, it’s $15 across the board and for the remainder of NYS, it’s $11.80 per hour. However, for fast-food workers outside of NYC, the min wage is $13.75 per hour. These changes are effective for all days worked starting December 31st, and the keywords are “DAYS WORKED.”
I’m often asked: because December 31 usually falls within a pay period, can our company pay 2 different min wage rates in the same pay period? This answer is YES, and you should!
For example, if a company has a bi-weekly pay period covering Dec 23rd through Jan 5th, you should pay the old min wage rate for Dec 23-30; and the new rate for Dec 31 through Jan 5th.In this example, if you pay the old rate for the entire pay period, you are out of compliance. If you pay the new rate for the entire pay period, you just overpaid your employees.
My recommendation to you is to call your payroll company regarding the new, NYS min wage rates, and make sure you are in compliance and are not overpaying your employees.