2026 New York Wage & Hour Compliance Update

As of January 1, 2026, multiple wage and hour compliance changes are now in effect, impacting salary thresholds for exempt employees, minimum wage rates, tip credits, meal credits, and uniform maintenance allowances across New York State and New York City.

Overtime Exemption – Salary Threshold Increases

The minimum salary employers must pay employees to avoid overtime eligibility has increased as follows:

NYC, Westchester & Long Island: $1,275.00 per week / $66,300.00 annually
(up from $1,237.50 per week / $64,350.00 annually)

Remainder of NY State: $1,199.10 per week / $62,353.20 annually
(up from $1,161.65 per week / $60,405.80 annually)

Employers should review exempt classifications to ensure continued compliance.

Minimum Wage Increases

Effective January 1, 2026, the minimum wage increased as follows (excluding home care aides and certain other industry-specific employees):

NYC, Westchester & Long Island: $17.00/hour
Remainder of NY State: $16.00/hour

Tip Credit Increases for Tipped Employees

The allowable tip credit and required cash wage for tipped employees increased as follows:

Food Service Workers

NYC, Westchester & Long Island: $11.34 cash wage / $5.65 tip credit per hour
Remainder of NY State: $10.70 cash wage / $5.30 tip credit per hour

Service Employees

NYC, Westchester & Long Island: $14.15 cash wage / $2.85 tip credit per hour
Remainder of NY State: $13.30 cash wage / $2.70 tip credit per hour

Meal Credit Adjustments

Meal credits also increased effective January 1, 2026 as follows:

Food Service Workers:

NYC, Westchester & Long Island: $4.05 per meal
Remainder of NY State: $4.10 per meal

Service Employees:

NYC, Westchester & Long Island: $4.75 per meal
Remainder of NY State: $4.60 per meal

Non-Service Employees:

NYC, Westchester & Long Island: $5.80 per meal
Remainder of NY State: $5.50 per meal

(Farm workers remain subject to separate rules.)

Uniform Maintenance Allowance Increases

Employers that require uniforms and do not provide laundering must pay increased weekly uniform allowances based on hours worked as follows:

NYC, Westchester & Long Island: Up to $21.10/week for employees working more than 30 hours
Remainder of NY State: Up to $19.85/week for employees working more than 30 hours

Reduced allowances apply for shorter workweeks.

Key Takeaway

These changes have immediate implications for payroll systems, wage notices, exempt classifications, and compliance obligations, particularly in hospitality and service-based industries. Employers should confirm that their compensation practices and policies reflect the January 1, 2026 updates.

For guidance on preparing for these changes or assessing compliance risk, please contact Jack Malley, Partner in KMWB’s Labor & Employment Practice Group, at jmalley@kuckermarino.com.

Media Contacts:

Briana Spariosu
Kucker Marino Winiarsky & Bittens, LLP
(212) 869-5030
bspariosu@kuckermarino.com