As we head into 2026, New York employers have another compliance task to keep on their radar. The State minimum wage has increased again, and businesses outside the five boroughs need to make sure they’re ready. The changes aren’t complicated, but they matter. Wages tie directly to budgets, payroll systems, job offers, and morale.
Here’s what you should know.
The New Minimum Wage for Most of New York State
For employers outside New York City, Long Island, and Westchester County, the minimum wage history looks like this:
• $15.00 per hour starting January 1, 2024
• $15.50 per hour on January 1, 2025
• $16.00 per hour on January 1, 2026
After 2026, the wage will increase each year based on the Consumer Price Index. The State will publish the updated numbers every year so employers can plan ahead.
These increases affect hourly employees, seasonal workers, part-time staff, and anyone who isn’t exempt under the wage and hour laws. Now’s the right time to make sure your payroll systems are updated and that your managers understand the new baseline when they hire or schedule employees.
Minimum Wage in New York City, Long Island, and Westchester
Even though our practice tends to focus on Western New York, many employers have remote staff or multi-location operations and, truth be told, we work all across New York State.
Here are the historical and current numbers for those regions:
• $16.00 per hour in NYC, Long Island, and Westchester starting January 1, 2024
• $16.50 in 2025
• $17.00 in 2026
If you have workers across different regions, each one must be paid according to the wage in the location where they physically perform the work.
Impact on Exempt Employees
A higher minimum wage tends to push wages upward across the board. It also interacts with exempt status. New York sets its own salary threshold for exempt administrative and executive employees. That threshold will continue to rise along with the minimum wage.
If you rely on exempt classifications, don’t assume your employees still qualify. Review salaries now and then again each fall when the State releases updated numbers.
Practice Pointers for Business Owners and HR Professionals
- Audit your pay rates. Ensure every hourly worker is above the new minimum effective January 1, 2026. Look closely at employees who hover near the threshold and plan according to your risk tolerance.
- Update job postings. If you’re covered by New York’s Pay Transparency Law, your posted ranges must take these wage increases into account.
- Revisit your budgets. Wage increases affect overtime costs, scheduling decisions, and revenue projections. You and your managers should build these adjustments into your planning.
- Communicate with staff. Most employees appreciate a simple explanation that their wages are increasing because the law has changed. Clear communication helps build trust.
The Bottom Line
New York minimum wage increases are here for the long term, and more adjustments will come each year. Employers that stay ahead of the changes hopefully reduce risk and avoid last-minute payroll headaches.
If you’d like help reviewing your classifications or updating your policies, or with any other labor and employment challenge, our team is here and ready to support you.
