Minimum wage increase on Long Island: 5 things to know
A union rally in New York City in 2022 demanding higher minimum wages for hourly workers. Credit: Sipa USA via AP/Steve Sanchez
Long Islanders earning minimum wage will see a slight bump in their paychecks starting in January.
The minimum wage rate will rise by 50 cents to $16.50 an hour next year for workers on Long Island as well as those in New York City and Westchester County. That represents a 3.1% raise from this year's $16 minimum.
On an annual basis, the new hourly rate represents an increase of $1,040 for employees working 40 hours a week to $34,320.
Workers in the rest of New York will see a 50-cent increase to $15.50 an hour.
The pay bump continues the upward trend for New York's minimum wage that began in 2016 when then-Gov. Andrew Cuomo approved a $15 minimum wage for New York City, Long Island and Westchester. It took effect on Long Island at the end of 2021. That legislation created the two-tier minimum wage, with higher minimum pay for work done in New York City and its suburbs than the rest of the state.
Here's what else you need to know about changes to New York's minimum wage rate in 2025:
In a decade, the minimum wage for Long Island workers nearly doubled, from $8.75 in 2015 to $16.50 next year. Twenty years ago, in 2005, the pay floor was $6.
About 11% of all workers earn less than $16.50 in New York City and Long Island, according to Shital Patel, a labor market analyst at the state Department of Labor's Hicksville office.
That percentage is higher among women, Black and Hispanic hourly workers, she said. The share is 13.4% among women in New York City and Long Island; 16.8% for Black hourly workers; and 17.7% for Hispanic hourly workers.
The leisure and hospitality industry employs the highest share of minimum-wage workers, at 25% of its workforce, according to state labor data. That category includes fast food workers, dishwashers and housekeepers, among other non-minimum wage roles.
There is a separate minimum rate for home health aides statewide. On Long Island they will receive $19.10 an hour next year, up nearly 3% from $18.55 this year.
The increase represents an improvement for workers, but it's still inadequate to cover the rising costs of necessities, such as housing and child care, said Robert Newell, president of United Food and Commercial Workers Local 1500. The local has about 16,500 members working in supermarkets, food production, coffee shops and as delivery workers in the metropolitan area.
The new minimum wage of "$16.50 is still far below a wage that most people would need to live a sustainable life on Long Island," Newell said. "That being the case, we've done a lot in this state to advance the minimum wage in a very short period of time."
The federal minimum wage is $7.25 per hour. In states like New York that have their own minimum wage laws, employers are required to pay the higher of the two. More than 20 states will increase their minimum wage rates next year, according to payroll company ADP.
The federal minimum translates to $15,080 in annual pay, assuming a 40-hour workweek.
Washington, D.C., has a higher minimum wage than all 50 states, at $17.50, and the district will make a cost-of-living adjustment in July.
California requires $16.50, Connecticut's rate is $16.35, and New Jersey's rate is $15.49 for employers with at least six workers.
Businesses with minimum-wage workers have had time to prepare for the change, said Matt Cohen, president and CEO of the Long Island Association.
"When businesses have certainty, it is easier to plan and be successful," Cohen said. "On the other hand, inflation has been persistent and this is another expense that is going to drive up the cost of doing business."
While the higher minimum wage adds to employers' labor costs, it also puts more money in the pockets of local consumers to spend at area businesses, Cohen said.
Seth Goldstein, owner and operator of eight Jersey Mike's Subs franchise locations on Long Island, said he expects to absorb the 50-cent-per-hour increase without raising prices. But he said he will continue to evaluate prices as employee wages rise.
"The constant increases every year make it very difficult for us to give merit raises during the year because we've got to plan for the forced raise," he said.
Long Island's minimum wage will increase to $17 an hour in 2026. Starting in 2027, New York State will begin automatically increasing to keep up with inflation.
In late 2026, the state will calculate the three-year average change in the Consumer Price Index for Urban Wage Earners and Clerical Workers in the Northeast. It will use that average to determine minimum wage increase for 2027.
State officials could pause those automatic increases in certain scenarios, such as a decline in consumer prices or a surge in the unemployment rate.
Long Islanders earning minimum wage will see a slight bump in their paychecks starting in January.
The minimum wage rate will rise by 50 cents to $16.50 an hour next year for workers on Long Island as well as those in New York City and Westchester County. That represents a 3.1% raise from this year's $16 minimum.
On an annual basis, the new hourly rate represents an increase of $1,040 for employees working 40 hours a week to $34,320.
Workers in the rest of New York will see a 50-cent increase to $15.50 an hour.
The pay bump continues the upward trend for New York's minimum wage that began in 2016 when then-Gov. Andrew Cuomo approved a $15 minimum wage for New York City, Long Island and Westchester. It took effect on Long Island at the end of 2021. That legislation created the two-tier minimum wage, with higher minimum pay for work done in New York City and its suburbs than the rest of the state.
Here's what else you need to know about changes to New York's minimum wage rate in 2025:
How has the minimum wage changed over time?
In a decade, the minimum wage for Long Island workers nearly doubled, from $8.75 in 2015 to $16.50 next year. Twenty years ago, in 2005, the pay floor was $6.
Who is affected by the change?
About 11% of all workers earn less than $16.50 in New York City and Long Island, according to Shital Patel, a labor market analyst at the state Department of Labor's Hicksville office.
That percentage is higher among women, Black and Hispanic hourly workers, she said. The share is 13.4% among women in New York City and Long Island; 16.8% for Black hourly workers; and 17.7% for Hispanic hourly workers.
The leisure and hospitality industry employs the highest share of minimum-wage workers, at 25% of its workforce, according to state labor data. That category includes fast food workers, dishwashers and housekeepers, among other non-minimum wage roles.
There is a separate minimum rate for home health aides statewide. On Long Island they will receive $19.10 an hour next year, up nearly 3% from $18.55 this year.
The increase represents an improvement for workers, but it's still inadequate to cover the rising costs of necessities, such as housing and child care, said Robert Newell, president of United Food and Commercial Workers Local 1500. The local has about 16,500 members working in supermarkets, food production, coffee shops and as delivery workers in the metropolitan area.
The new minimum wage of "$16.50 is still far below a wage that most people would need to live a sustainable life on Long Island," Newell said. "That being the case, we've done a lot in this state to advance the minimum wage in a very short period of time."
How does New York's minimum wage compare with the federal level and other states' pay floors?
The federal minimum wage is $7.25 per hour. In states like New York that have their own minimum wage laws, employers are required to pay the higher of the two. More than 20 states will increase their minimum wage rates next year, according to payroll company ADP.
The federal minimum translates to $15,080 in annual pay, assuming a 40-hour workweek.
Washington, D.C., has a higher minimum wage than all 50 states, at $17.50, and the district will make a cost-of-living adjustment in July.
California requires $16.50, Connecticut's rate is $16.35, and New Jersey's rate is $15.49 for employers with at least six workers.
How will this affect businesses?
Businesses with minimum-wage workers have had time to prepare for the change, said Matt Cohen, president and CEO of the Long Island Association.
"When businesses have certainty, it is easier to plan and be successful," Cohen said. "On the other hand, inflation has been persistent and this is another expense that is going to drive up the cost of doing business."
While the higher minimum wage adds to employers' labor costs, it also puts more money in the pockets of local consumers to spend at area businesses, Cohen said.
Seth Goldstein, owner and operator of eight Jersey Mike's Subs franchise locations on Long Island, said he expects to absorb the 50-cent-per-hour increase without raising prices. But he said he will continue to evaluate prices as employee wages rise.
"The constant increases every year make it very difficult for us to give merit raises during the year because we've got to plan for the forced raise," he said.
What's on tap for future years?
Long Island's minimum wage will increase to $17 an hour in 2026. Starting in 2027, New York State will begin automatically increasing to keep up with inflation.
In late 2026, the state will calculate the three-year average change in the Consumer Price Index for Urban Wage Earners and Clerical Workers in the Northeast. It will use that average to determine minimum wage increase for 2027.
State officials could pause those automatic increases in certain scenarios, such as a decline in consumer prices or a surge in the unemployment rate.
Jonathan LaMantia covers residential real estate and other business news on Long Island. He previously covered the business of health care for Crain's New York Business.
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No bail for alleged CEO killer ... Suffolk cop back on duty ... Trader Joe's plans new LI store ... All LI football team
