New York’s 2024 Budget Agreement (“Budget”) signed into law in May will raise the minimum wage in New York State.
As of January 1, 2024, the minimum wage will increase to $16 per hour in New York City and Nassau, Suffolk, and Westchester counties, and to $15 per hour in all other parts of the state. The minimum wage will increase by an additional $0.50 in each of 2025 and 2026.
Starting in January 2027, minimum wage increases will be tied to the inflation rate. More specifically, the increases will be tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region.
The NYS Department of Labor (DOL) must publish future minimum wage rates by no later than October 1st of each year.
The DOL may pause minimum wage increases for up to two consecutive years based on future economic conditions. The DOL may takes this “off ramp” if the CPI-W is negative, if the statewide unemployment rate increases by .05% or more, and/or if total non-farm employment statewide (measured seasonally) decreases.
New Jersey tied its minimum wage rate to inflation under a 2019 law. The New Jersey minimum wage is scheduled to increase to at least $15.13 per hour for most employers in 2024.
