NY and NJ Employers Should Prepare for 2021 Minimum Wage Rate Increases

While everyone is looking forward to putting the year 2020 behind us, the new year brings new increases in state minimum wage rates.

New York

In New York City, the minimum wage rate will remain at $15.00/hour for 2021, while the 2021 minimum wage rate will increase to $14.00/hour for Long Island and Westchester, and to $12.50/hour for the rest of the state.

As a result of the minimum-wage rate increasing in New York for 2021, the minimum salary threshold for overtime-exempt employees in New York will also increase.  These changes are summarized below.

Location 2020 Minimum Salary 2021 Minimum Salary
New York City (employers with 10

or less employees)

$1125/week or $58,500/year No Change for 2021
New York City (employers with 11

or more employees)

$1125/week or $58,500/year No Change for 2021
Nassau, Suffolk, and Westchester Counties $975/week or $50,700/year $1,050/week or $54,600/year (effective 12/31/2020)
Remaining areas of New York State $885/week or $46,020/year $937.50/week or $48,750/year (effective 12/31/2020)

New York employers should analyze their exempt workforce and determine whether any employee who is earning less than the new exempt salary threshold should either be converted to nonexempt status or given a raise to comply with the law.

New Jersey

In 2021, the minimum wage rate for employers with six or more employees will increase to $12.00/hour, and to $11.10/hour for employers with five or less employees.

Other States

For employers with operations or employees working in other states, a full list of state minimum wage rates for 2021 can be accessed on the Paycor website by clicking on this link: https://www.paycor.com/resource-center/minimum-wage-by-state.

If you have questions regarding the NY and NJ 2021 Minimum Wage Rate Increase , or any other HR matter, please contact us at 631-794-7400 or info@compasswfs.com.