On March 31, 2016, New York Governor Andrew Cuomo signed into law a bill increasing the statewide minimum wage on a phased in basis over the next five years, to $15.00 per hour in some, but not all New York counties (“Minimum Wage Law”). This is in addition to a bill enacted on December 31, 2015, that increased the subminimum wage for tipped employees in the hospitality industry from $5 to $7.50 per hour.

The Minimum Wage Law now provides for a tiered increase from the current statewide rate of $9.00, to $11, $13, and $15 per hour effective December 31, 2016, 2017, and 2018 respectively, for work performed in New York City for employers with more than 10 employees. A slightly longer phase in period, running to December 2019, is provided for New York City employers with 10 or fewer employees and for Westchester, Nassau, and Suffolk counties. For these counties, the minimum wage is set to increase to $10.00 per hour by December 31, 2016, and then $1 every year until reaching $15.00 per hour on December 31, 2021.

For work performed in other counties throughout NY State, the minimum wage increase will be more gradual, increasing to $9.70 per hour on December 31, 2016, followed by a 70 cent increase every year until December 31, 2020, when the minimum wage will reach $12.50 per hour. After December 31, 2020, the minimum wage in these counties will continue to increase on an indexed schedule to be set by the Director of the Division of Budget (“DOB”) in consultation with the Commissioner of Labor.