From time-to-time, Foreclosurepedia welcomes guest publications which impact the Mortgage Field Services Industry. Yuriy Moshes is the Founding Partner and CEO of Moshes Law and attorney with broad expertise. He has two bachelor’s degrees. Being an experienced expert, he is considered one of the most in-demand specialists in the personal injury and other kinds of law fields. Below, is an article drafted by him pertaining to the New York Wage and Hour Law and changes thereto.
2021 Changes To New York Wage And Hour Law
Employees in the state of New York will be reigning in a bigger bank than usual as of 2021 as there have been significant changes to New York’s Wage and Hour Laws. Such drastic changes are coming during a time of mass uncertainty as to the economy. The pandemic continues to loom even though vaccinations have been administered to a plethora of people.
For employers, they would have been aware of the New York minimum wage increase. However, they might have been taken by surprise that there is also an increase in employees with minimum salary levels to be exempt from overtime. Employers may also not be aware of the fact that they may no longer take a tip credit towards minimum wage for the employees who receive that benefit. Employers are strictly required to comply with the New York Labor Laws.
Increases in Hourly Wage and Salary
As of December 31, 2020, increases in hourly wages and salary have increased in the state of New York with the exception of New York City according to the New York Wage Orders. Specific parts of New York such as Long Island and Westchester will be seeing an increase from $13.00 to $14.00 per hour. The rest of New York with the exception of New York City will increase from $11.80 to $12.50 per hour. New York City will remain steady at $15.00 per hour.
As it relates to salary levels to be exempt from overtime from Long Island and Westchester they will get a minimum salary increase of $1,050.00 per week, which represents a $75 increase from the previous year. The other sections of the state of New York with the exception of New York City will now receive a minimum salary increase of $937.50 per week, which represents a $52.50 increase from the previous year. The New York City minimum salary for the salary levels to be exempt from overtime will remain as is at $1,125.00 per week.
Elimination of Tip Credit Changes for Miscellaneous Industries and Occupations
Employers that fall within the category subject to the New York Wage Orders will no longer be able to take a tip credit towards minimum wage. On June 30, 2020, employers were compelled to reduce the tip credit by 50%, which indicates that the Government had begun their steps in dismissing tip credits as a whole. Effective December 31, 2020 tip credit towards minimum wage employees was abolished.
For the Miscellaneous Industries and Occupations sector the wage order will affect non-hospitality workers who often receive tips. Employers of such employees now have an obligation to pay the full minimum wage prescribed by the New York wage order based on the location of the business.
Uniforms
Based on 12 CRR-NY 146-1-7 it stipulates that,
“Where an employer does not maintain required uniforms for any employee, the employer shall pay the employee, in addition to the employee’s agreed rate of pay, uniform maintenance pay at the weekly rate set forth below, based on the number of hours worked, where employees who work over 30 hours per week shall be paid the high rate, employees who work more than 20 hours but fewer than 30 hours shall be paid the medium rate and employees who work 20 hours or fewer shall be paid the low rate for work performed in:
(1) New York City for:
(i) Large employers of 11 or more employees:
$18.65 high, $14.75 medium, $8.90 low on and after December 31, 2018
(ii) Small employers of 10 or fewer employees:
$18.65 high, $14.75 medium, $8.90 low on and after December 31, 2019;
2) Remainder of downstate (Nassau, Suffolk and Westchester counties):
$17.40 high, $13.75 medium, $8.30 low on and after December 31, 2020;
(3) Remainder of State (outside of New York City, Nassau, Suffolk and Westchester counties):
$15.55 high, $12.30 medium, $7.45 low on and after December 31, 2020.”
Based on such regulations the fees above indicate the amount an employer should pay his employee as it relates to uniforms which are not maintained by the employer. There are however a few exceptions where the employer needs not pay the additional fees such as where the uniforms:
(a) “are made of “wash and wear” materials;
(b) may be routinely washed and dried with other personal garments;
(c) do not require ironing, dry cleaning, daily washing, commercial laundering, or other special treatment; and
(d) are furnished to the employee in sufficient number, or the employee is reimbursed by the employer for the purchase of a sufficient number of uniforms, consistent with the average number of days per week worked by the employee.”
Tip Credit Changes to the Hospitality Industry
As it pertains to the hospitality industry, tip changes have not been eliminated. However, based on the Hospitality Wage Order the amount of tip credit toward minimum wages have varied as of December 31, 2020.
To sectionalize the Hospitality industry employees we will discuss briefly the changes to the following employees:
- The non-food service workers; and
- Food service workers.
For non-food service workers the minimum hourly rate that covered employers must pay to tip service employees in Long Island and Westchester County, $11.65. In New York City $12.50 and everywhere else in the state of New York is $10.40. This is as long as the employees earn sufficient tips to make at least the applicable full minimum wage.
As it pertains to food service workers, the minimum hourly rate owed in Long Island and Westchester County is $9.35, in New York City it is $10.00 and everywhere else in New York it is $8.35.
Conclusion and Recommendations
The New York Wage and Hour Laws brought a difference in 2021. These changes from the outset are more beneficial to the employees as they will be going home with more money in their pockets. With these new regulations in place, employers should ensure that they are in full compliance as of December 31, 2020. The various changes will be reflected in their balance sheets. Where Employers fail to comply it is important to come forward and tell Employment Lawyers your story and may be entitled to seek compensation.
