NYC Minimum Wage – Per Hour – Tipped, Non-Tipped and Fast Food

NYC minimum wage is $15 per hour.  The way the wage is calculated depends on the type of industry one is working in – whether one is considered a fast food worker, a general service worker, or a tipped hospitality worker.

NYC has a higher minimum wage than the rest of New York State. The New York State, however, has a higher minimum wage than the federal minimum wage. When the state’s minimum wage is higher than the federal requirement, the state minimum wage supersedes the federal minimum wage because minimum wage laws always favor the employees.

Fast Food Establishment

A fast food worker for purposes of computing New York’s fast food worker minimum wage is an employee of a fast food establishment. A fast food establishment is a business that is part of a chain of 30 or more locations nationally that serves food, or drinks offering limited service where customers pay before eating without full table service.

As of December 31, 2020, the NYC minimum hourly wage for fast food workers is $15 and $14.50 for the rest of the New York State.

General Non-Tipped Workers

This is the first time in years where employees in New York City working in large and small establishments have the same minimum wage of $15 per hour. Large establishments are businesses with 11 or more employees, while small establishments are businesses with 10 or fewer employees.

In Nassau, Suffolk and Westchester Counties, the minimum wage as of December 31, 2020 is $14, while the rest of New York State is $12.50 per hour.

Tipped Hospitality Worker

Under the tip credit provision or tip credit allowance, an employer may pay an employee less than the minimum wage, for as long as the minimum hourly rate plus tips, combined together, reach at least the minimum wage of $15 per hour. To claim a tip credit/allowance, the employer must have given notice to the employees, at or before hiring, that the employer will apply a tip credit or allowance toward their minimum wage and should prove that the employee actually received such tips.

Under NY Admin. Rules 146-2.14, an eligible employee for tip sharing and tip pooling is one who performs, or assists in performing, a personal service to patrons at a level that is a principal and regular part of their duties and is not merely occasional or incidental. Examples of these eligible occupations are wait staff, counter personnel who serve food or beverages to customers, bus persons, bartenders, service bartenders, barbacks, food runners, captains who provide direct food service to customers, and hosts who great and seat guests.

For both large and small establishments in NYC, a tipped hospitality service worker should get $12.50 and $2.50 in tip credit per hour. In Nassau, Suffolk, and Westchester counties, the hospitality service worker should get $11.65 plus $2.35 in tip credit per hour. For the rest of the New York State, the minimum wage for hospitality service workers is $10.40 per hour and $2.10 in tip credit.

Should you have any wage-related concerns or issues with your employer, we, at the Law Offices of Albert Goodwin, are here for you. We have offices in New York City, Brooklyn, NY and Queens, NY. You can call us at 212-233-1233 or send us an email at [email protected].