Cleaning worker in NY.
Photo: Andrés Correa Guatarasma / Courtesy
Starting this Saturday, December 31 and Sunday, January 1, the minimum wage will rise in areas of New York and the entire state of New Jersey, respectively.
The minimum wage in New York City, Long Island and Westchester County will remain at $15 per hour. But in the rest of the state it will increase by $1, to settle at $14.20 per hour, from December 31st.
The state agreed to a $15 state minimum wage as part of the 2016-2017 state budget. This goal will be reached progressively with increases in the coming years.
Los Tipped workers in New York City they are already subject to the minimum wage of $15 per hour, but their employers can take up to $5 per hour as tip compensation, he explained. Fox News.
The law also says that when tips are charged on credit cards an employer can take the worker’s prorated portion of the service charge charged by the issuer for tip processing.
For example, if a customer leaves a $20 tip on a credit card purchase and the commission charges on that part of the payment equal $1, the restaurant would only have to give the employee $19.
While, in New Jersey the increase will go into effect on January 1: the minimum wage will rise $1.13 to $14.13 an hour for most employees.
Cash wages for tipped workers will increase to $5.26/hour and employers will be able to claim a tip credit of $8.87, a maximum allowable increase of $1.
If a worker’s cash minimum wage plus tips do not equal at least the state minimum wage, then the employer must pay the difference.
The annual increases in the minimum wage are due to a 2019 state law that raises the minimum wage to $15 per hour for most employees by 2024. Under the law, the minimum wage increases by $1 per hour or more if justified due to significant increases in the Consumer Price Index (CPI), as it happened this year.
