The headline numbers
NYC + Long Island + Westchester: $16.50 (2025), $17.50 (2026). Rest of state: $15.50 (2025), $16.50 (2026). Indexed thereafter.
New York allows employers to take a tip credit of $5.50/hour against the full state minimum wage. That means the employer can pay you as little as $11.00/hour in direct wage, as long as your tips bring total earnings to at least $16.50/hour for the pay period. If tips fall short, the employer must make up the difference.
Tip pool rules
NYC and rest of state have separate tipped wages. Food service vs. hospitality workers have different rates. Detailed notice requirements apply.
Universal rules that apply in every state regardless of tip credit status:
- Managers and supervisors cannot keep any portion of tips, even in a valid tip pool. This is a federal rule under FLSA Section 203(m)(2)(B) and applies in New York.
- Workers must keep all tips minus valid tip pool / tip-out contributions.
- If the employer uses a tip credit, only customarily tipped employees can be in the tip pool. To include BOH (cooks, dishwashers), the employer must pay full minimum wage to all participants.
Sidework and the 80/20 rule in New York
New York maintains an active 80/20 rule under state DOL regulations. Non-tipped work over 20% of hours OR any single non-tipped task lasting 2+ hours requires full state minimum wage.
The federal 80/20 rule was struck down by the 5th Circuit in Restaurant Law Center v. DOL (2024) and is no longer enforceable as a federal regulation. Whether sidework time over 20% triggers full-minimum-wage protection in New York depends entirely on state-level enforcement. Fortunately, New York has its own active state-level sidework protections — see above.
Local minimums that may apply
Several cities and counties in the U.S. set higher minimum wages than their state. Local minimums always supersede state minimums where applicable. Check whether your city has its own ordinance:
- NYC + Long Island + Westchester have separate higher tier (already $16.50, rising to $17.50 in 2026)
Notable state-specific items
- Multi-tier minimum wage system by region
- NYC residents face combined state + city tax
- Strict state-specific tip credit notice requirements
How to verify the current numbers
Wages, indexed minimums, and tip credit rules change. Always cross-check before relying on specifics:
- State labor agency: https://dol.ny.gov/
- State revenue agency (for tax info): https://www.tax.ny.gov/
- Federal DOL Wage and Hour Division: dol.gov/agencies/whd