Starting Jan. 1, 2027, and on each Jan. 1 thereafter, New York’s minimum wage will automatically increase in an amount set by the New York Department of Labor that must be published no later than Oct. 1 of the prior year (e.g., for 2027, the Department of Labor must publish the new minimum wage no later than Oct. 1, 2026). The annual increase to the minimum wage set by the Department of Labor must be tied to inflation as measured by the Consumer Price Index for the Northeast Region Urban Wage Earned and Clerical Workers. In the event the applicable consumer price index is flat or negative in any particular year, there will be no change to the minimum wage for that year; there is no mechanism to decrease the minimum wage should there be deflation.
As a result of the 2023-2024 budget deal, New York employers need to note the increases to the minimum wage that will go into effect starting on Jan. 1, 2024, and each Jan. 1 thereafter, and budget labor expenses accordingly.
For more information about this alert, please contact Carolyn D. Richmond at firstname.lastname@example.org, Glenn S. Grindlinger at email@example.com, or any member of Fox Rothschild’s New York Labor and Employment Group.