Employers in New York State and New York City will continue to navigate a fast-changing legal landscape as the calendar flips to a new year. 2025 was another active year for workplace legislation, much of it spurred by local responses to federal policy shifts. As a result, several major laws have already taken effect and more are set to roll out in 2026 – with even more significant changes on the horizon. Below, we break down the key developments and what employers should be watching as you plan for compliance in the year ahead and beyond.
Minimum Wage and Compensation Updates
- Minimum Wage Increases: Effective January 1, 2026, the minimum wage rises to $17 per hour in New York City, Long Island, and Westchester, and to $16 per hour in the rest of the state. Starting in 2027, future increases will be automatically tied to inflation.
- Tip Credit Adjustments: Cash wage and tip credit amounts increase alongside the minimum wage. Tipped service employees in NYC, Long Island, and Westchester will receive a $14.15 cash wage with a $2.85 tip credit; tipped food service workers in these regions will see a cash wage of $11.35 and a $5.65 tip credit. In the rest of the state, the cash wage and tip credit are $13.30/$2.70 and $10.70/$5.30 for tipped service employees and tipped food service workers, respectively.
- Salary Threshold for Exempt Employees: On January 1, 2026, the weekly salary threshold for executive and administrative employee exemptions will rise to $1,275 in NYC,...
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