This is what you should know – Telemundo New York (47)

While most New Yorkers are eager to leave 2020 behind, business owners in much of New York will see their labor costs rise in 2021 despite much of the state going through a sharp economic decline.

While many employers are aware of the upcoming minimum wage increase, many may not be aware that the minimum wage rate for exemption from overtime is also increasing. And most may also not know that you will no longer be able to get a minimum wage tip credit for a broad spectrum of employee categories.

MINIMUM SALARY INCREASE

Effective December 31, 2020, the minimum wage will increase for all private sector employees in the state, except for those who work in New York City. Specifically, the minimum will increase from $ 13.00 to $ 14.00 per hour for employees working in Long Island and Westchester, and from $ 11.80 per hour to $ 12.50 per hour for the rest of the state, except New York City, where the The minimum is already $ 15.00 per hour and will continue to be.

Salary increases are not limited to hourly employees. Starting December 31, 2020, minimum wages for executive and administrative exemptions from overtime will also increase as follows:

The minimum wage threshold in New York City will remain at $ 1,125.00 per week.

TIP CREDIT CHANGES

Employers subject to the Miscellaneous Industries and Occupations Wage Order face a significant change. As of June 30, 2020, these employers were required to reduce the applied tip credit by 50%.

Beginning December 31, 2020, such employers can no longer apply a tip credit to the minimum wage for employees who receive tips on a regular basis.

That change will affect companies that hire employees such as parking attendants, valets, hairdressers, salon workers, and other workers outside of the hospitality industry who often receive tips. Consequently, employers of these workers must ensure that they start paying the full minimum applicable in the geographic area in question.

CHANGES IN THE HOTEL INDUSTRY TIP CREDIT

The elimination of the tip credit does not apply to all employers and will not affect employers who operate restaurants and hotels and are covered by the Hotel Industry Wages Order. These companies can still apply a tip credit towards the minimum wage. However, the amount of the tip credit changes as of December 31, 2020.

For non-food service workers such as delivery staff or restroom attendants, the new allowable tip credit is as follows, except for resort hotels:

In New York City, the tip credit allowed for such service workers will not change this year and will remain at $ 2.50 per hour, with a direct cash minimum wage of $ 12.50 per hour. To get the tip credit, such workers must average at least $ 3.25 in hourly tip earnings.

For resort hotels, the new minimum wage and tip credit for workers not working in the foodservice sector is as follows:

For New York City resort hotels, the tip credit allowed for non-food service workers remains $ 2.50 per hour. For the credit to be applied, that worker must have an average of $ 8.40 per hour in tips. The worker must receive a cash wage of at least $ 12.50 per hour, for a minimum total compensation of $ 15.00.

The tip credit applicable to foodservice workers, such as waiters, waiters, companions, and runners, will also change on December 31, 2020 for most of the state as follows:

In New York City there are no changes: the tip credit allowed per hour remains $ 5.00 and the minimum cash wage is $ 10.00 per hour, for a total minimum wage of $ 15.00 per time.

Hospitality industry employers are not only required to implement payroll changes required to reflect the minimum wage increase and tip credit changes, which take effect on December 31, 2020, they must also notify their employees by writing of these changes at least seven days before in accordance with the Law on Prevention of Wage Theft.

VISIT THE WEBSITE of the New York Department of Labor for more information, also available in Spanish.

You can also call 1-888-4-NYSDOL (1-888-469-7365).

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