New York State Minimum Wage Increase Effective December 31, 2015
Effective December 31, 2015 the basic minimum hourly wage will increase to $9.00 from $8.75. In the hospitality industry, the minimum wage for tipped employees increases to $7.50 with a tip allowance that meets or exceeds the basic minimum wage rate of $9.00/hour.
All employees, including hospitality workers, should be given a “Notice & Acknowledgement of Pay Rate & Payday Notice” before any change in their wages. The notices are available in English, Spanish, Chinese, Korean and Haitian Creole. Employees must sign the notice and be given a copy of the notice. Employers must keep the original notice for 6 years. If you need assistance preparing the notices, please contact us.
Employers Beware: Employers who underpay their workers are required by the Department of Labor (DOL) to pay their employees the difference between the amounts already paid and the required minimum wage based on hours worked. Often, the DOL collects the funds without resorting to court action. However, an employer that violates the Minimum Wage Law is subject to criminal prosecution and penalties. Action may also be taken in civil court. The Commissioner of Labor may require an employer to pay: Minimum wage underpayments PLUS interest and civil penalties up to 200 percent of the unpaid wages.
Currently under review is the recommendation of a separate minimum wage rate for New York City. If and when the legislature enacts a different minimum wage for New York City, employers may have to make changes accordingly.
Please be sure to contact us for an updated minimum wage poster. Remember posters should be hung in a place easily visible to employees.
Employers and business owners can contact Compass Workforce Solutions for help with compliance issues such as this and many, many more. Speak with one of our HR Business Partners today at 631.794.7400.