As of October 2026, the New York State minimum wage is $17.00 an hour in New York City, Long Island and Westchester County, and $16.00 an hour in the rest of the state, from 1 January to 31 December 2026. From 2027 the wage rises each year in line with inflation, measured by the Northeast CPI-W.
New York is one of the few states where the answer depends on the county your employee works in. Add separate rules for tipped hospitality staff, exempt salaries and farm workers, and it's easy to underpay someone by accident. Here's the full picture from the New York State Department of Labor and the Attorney General.
New York minimum wage by region
| Where the employee works | Basic minimum wage (as of October 2026) | Fast food workers |
|---|---|---|
| New York City | $17.00 an hour | $17.00 an hour |
| Long Island and Westchester County | $17.00 an hour | $17.00 an hour |
| Remainder of New York State | $16.00 an hour | $16.00 an hour |
The Department of Labor's P700 fact sheet says private sector employees, including domestic workers in most cases, must receive the basic minimum wage. The rate follows where the person works, so a remote employee upstate and an office worker in Manhattan can be on different minimums in the same business.
The basic rate can also be changed by wage orders, which set minimum pay, overtime rates and meal and lodging credits for hospitality, building service and farming, with a separate order for all other industries. If you're in one of those sectors, read your wage order, not just the headline rate.
What happens in 2027
The planned series of fixed increases ends with 2026. The Governor's office says that starting in 2027 the minimum wage will increase each year at a rate set by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region. In practice that means you won't know the exact 2027 figure until it's announced, so leave room in your budget for an inflation-sized rise every January.
Tipped workers and the tip credit
Only hospitality employers can take a tip credit in New York; the Attorney General says it isn't allowed in jobs outside the hospitality industry. Where it applies, the cash wage is lower than the basic rate:
| Region | Tipped service workers (as of October 2026) | Tipped food service workers (as of October 2026) |
|---|---|---|
| NYC, Long Island and Westchester | $14.15 cash wage, $2.85 tip credit | $11.35 cash wage, $5.65 tip credit |
| Remainder of the state | $13.30 cash wage, $2.70 tip credit | $10.70 cash wage, $5.30 tip credit |
The credit only works if the worker regularly receives tips, their hourly tips and wage add up to at least the minimum wage, you've told them you're paying less because of tips, and you keep a weekly record of the tips they earn. Miss one of those and you owe the full rate.
Exempt salaries move with the wage
Here's the part many owners don't expect. The Attorney General says executive and administrative employees must receive a minimum weekly salary to be exempt from overtime, and whenever the state minimum wage rises, that salary rises too. As of 1 January 2026 it's $1,275.00 a week in New York City, Long Island or Westchester, and $1,199.10 a week in the rest of the state. Professional occupations have no state minimum salary requirement.
So the inflation increase in 2027 will pull exempt salaries up as well. If a manager sits just above today's threshold, check them again in January.
Overtime and penalties
- Overtime is time and a half after 40 hours in a work week. The Attorney General's example: a worker on $16.00 an hour is entitled to $24.00 an hour for each hour after 40.
- Farm workers get overtime after 52 hours a week as of 2026, and that threshold falls by four hours every other year until it reaches 40 in 2032.
- Workers who look after their own required uniforms must be paid an added amount over the minimum wage.
- The P700 says fines can total up to twice the missing wages, and employers may also have to pay interest on unpaid wages, on top of back wages and liquidated damages. Criminal prosecution is possible too.
How to stay compliant
- Map every employee to a region: NYC, Long Island and Westchester, or the remainder of the state.
- Set hourly pay to at least $17.00 or $16.00 accordingly, and use the tipped cash wages only for hospitality staff who meet every condition.
- Check exempt executive and administrative salaries against the weekly thresholds.
- Display the New York State minimum wage poster where every employee can see it.
- Review rates each January now that increases follow inflation.
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My verdict
New York's minimum wage is $17.00 downstate and $16.00 upstate for 2026, and from 2027 it follows inflation. The costly mistakes aren't the headline rates; they're paying the wrong region, taking a tip credit without the records to back it, and forgetting that exempt salaries rise with the wage. Get those three right and you're in good shape.
Frequently asked questions
What is the minimum wage in New York in 2026?
As of October 2026, it's $17.00 an hour in New York City, Long Island and Westchester County, and $16.00 an hour in the rest of New York State.
Will New York's minimum wage go up in 2027?
Yes. From 2027 it rises each year in line with the Northeast CPI-W measure of inflation, so the exact figure is set annually.
What is the tipped minimum wage in New York City?
As of October 2026, tipped food service workers in NYC, Long Island and Westchester get a cash wage of $11.35 with a $5.65 tip credit, and tipped service workers get $14.15 with a $2.85 tip credit.
Can any New York employer take a tip credit?
No. Only hospitality employers can take a tip credit, and only when the worker regularly receives tips and the employer keeps weekly tip records.
What is the minimum salary for exempt employees in New York?
For executive and administrative employees, $1,275.00 a week in NYC, Long Island or Westchester and $1,199.10 a week elsewhere, as of 1 January 2026.
What are the penalties for not paying minimum wage in New York?
Employers can be ordered to pay back wages, liquidated damages, interest and fines, and may face criminal prosecution, according to the Department of Labor.
