NY State Minimum Wages and Salary Exemption Thresholds for 2026

2026 New York State Minimum Wage and Salary Exemption Threshold Increases

New York State has continued its practice of implementing annual minimum wage increases to reflect changing economic conditions and rising costs of living. This approach will carry forward into 2026, when updated minimum wage rates and revised salary exemption thresholds become effective on January 1. These adjustments are part of a multi-year framework enacted through legislation passed in 2023 and will affect employers statewide, making a careful compliance review essential.

2026 Minimum Wage Rate Changes

Beginning January 1, 2026, the minimum hourly wage in New York City, Long Island (including Nassau and Suffolk Counties), and Westchester County will rise to $17.00 per hour. For all other regions of New York State, the minimum hourly wage will increase to $16.00. Collectively, the 2026 minimum wage updates are as follows:

New York State (not including NYC, LI, and Westchester)

Minimum Wage	$16.00 per hour
Minimum Overtime Wage	$24.00 per hour
Fast Food Worker Wage	$16.00 per hour
Tipped Food Service Wage	$10.70 ($5.30 Employer Credit) per hour
Tipped Service Wage	$13.30 ($2.70 Employer Credit) per hour

New York City, Long Island (Including Nassau and Suffolk Counties) and Westchester County

Minimum Wage	$17.00 per hour
Minimum Overtime Wage	$25.50 per hour
Fast Food Worker Wage	$17.00 per hour
Tipped Food Service Wage	$11.35 ($5.65 Employer Credit) per hour
Tipped Service Wage	$14.15 ($2.85 Employer Credit) per hour

Employers may generally pay tipped employees a reduced minimum wage, provided that the employee’s tips, when combined with wages, equal at least the applicable minimum wage. In addition to changes affecting tipped wages, the regulations also increase allowable credits for meals, lodging, and utilities, as well as required uniform maintenance pay.

The 2023 legislation and accompanying regulations set specific wage rates only through the end of 2026. Starting January 1, 2027, minimum wage adjustments will be tied to inflation. New York State will calculate future increases using a three-year moving average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region.

2026 Salary Exemption Threshold Updates

Employees classified in the executive and administrative exemptions may qualify as exempt from overtime if they meet applicable duties tests and earn a salary that satisfies the following minimum thresholds, which will increase in 2026:

New York State (not including NYC, LI, and Westchester)

Weekly Minimum

$1,199.10 per week ($62,353.20 annualized)

New York City, Long Island (Including Nassau and Suffolk Counties) and Westchester County

Weekly Minimum

$1,275.00 per week ($66,300.00 annualized)

Please note that while New York State also regulates the classification of employees working in a bona fide professional capacity, it does not impose a minimum salary threshold for those roles. As a result, employers evaluating professional exemptions should look to the federal standard, which currently requires a minimum salary of $684 per week, or $35,568 annually.

Public Sector Employers

Public sector employers should note that New York State’s Minimum Wage Law generally does not apply to public agencies (including federal, state, county, city, village, town, and school districts, as well as certain quasi-government agencies). Public employees are typically covered instead by the federal minimum wage and federal wage-hour rules. Non-teaching employees of school districts, however, are subject to New York State minimum wage requirements. Public employers should plan ahead for payroll and budgeting impacts, and should evaluate wage-hour compliance under the rules that apply to their workforce (including any federal requirements and any New York provisions that may still apply in specific circumstances).

In addition, public sector employers should be mindful of the practical workforce impacts of relying solely on federal minimum wage standards. The federal minimum wage remains $7.25 per hour, which is less than half of New York State’s 2026 minimum wage rates. In a high cost-of-living state like New York, maintaining wages at or near federal minimum levels can create significant recruitment, retention, and morale challenges, particularly when competing with private-sector employers that are subject to higher state wage requirements.

Employers of Unionized Employees

Employers with unionized workforces should evaluate how the 2026 wage increases interact with their collective bargaining agreements. While a CBA may establish wage rates and wage scales, wage-and-hour minimum standards generally cannot be waived or reduced through a collective bargaining agreement; employers must comply with applicable legal requirements even when compensation terms are collectively negotiated. In addition, because employers typically cannot change negotiated wages or related compensation practices without considering bargaining obligations, employers should review the agreement language carefully and consult with labor/HR advisors before implementing wage-related changes that could affect negotiated terms.

What Employers Should Do

• Review and update payroll policies and procedures to confirm compliance with the 2026 wage increases.

• Reassess employee classifications to ensure individuals are properly designated as exempt or non-exempt based on both job duties and applicable salary threshold requirements.

If you have questions or would like guidance on these changes or related compliance issues, please contact Visions Human Resource Services, LLC at info@visionshr.com or 845-567-3978. You may also reach out directly to Kelly Caldwell at kcaldwell@visionshr.com or another member of the Visions HR team with whom you regularly work.

This alert is provided for informational purposes only and is not intended to serve as legal advice on any specific matter.