December 2004

Pursuant to legislation that will take effect on January 1, 2005, the New York’s minimum wage, currently set at $5.15 per hour, will be increased in annual increments up to $7.15 by 2007. The minimum wage will increase to $6.00 per hour on January 1, 2005, to $6.75 per hour on January 1, 2006, and to $7.15 per hour on January 1, 2007.

The legislation, entitled the “Empire State Wage Act of 2004,” also incrementally raises the minimum wage for food service workers who routinely collect tips. The “tip wage” will increase from $3.30 per hour to $3.85 per hour on January 1, 2005, to $4.35 per hour on January 1, 2006, and to $4.60 per hour on January 1, 2007.

Governor Pataki vetoed the minimum wage bill earlier this year, but the New York Senate voted to override the veto on December 6, 2004. Although the new minimum wage rates will affect many employers, the Act is actually very limited. Aside from raising the minimum wage, it does not change New York’s wage payment rules.

For additional information on the minimum wage increase, please feel free to contact James A. Spitz, Jr. at 585-419-8640 jspitz@harrisbeach.com or the Harris Beach attorney with whom you usually consult.

This article provides brief analysis or comments on matters of Labor and Employment Law. This article does not purport to be a substitute for advice of counsel on specific matters.