On May 3, Governor Hochul took a significant step towards ensuring fair compensation for workers by signing a new minimum wage law in New York. Unlike the previous system, the revised law encompasses all companies, irrespective of their size or the number of employees. These changes have far-reaching implications for businesses across the state, necessitating careful planning for future labor costs.

To help you plan for future labor costs in NY, these are the new statutory minimum wage rates:

The new legislation goes beyond 2026, as the minimum wage will be tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region. Beginning January 1, 2027, annual raises will be determined based on the CPI-W data. However, there are certain circumstances that may temporarily pause the raises, such as a negative CPI-W for the Northeast Region or an increase in the New York State unemployment rate of 0.5% or more.  They will not decline.

To ensure appropriate adjustments to minimum wage rates, the New York State Department of Labor (DOL) will closely monitor the state's economy. Starting in 2027, the DOL will announce any necessary increases each January, allowing employers ample time to prepare. The adjusted rates will be posted no later than October 1 of each year, providing businesses with a three-month period to adjust their labor costs accordingly.