2025 New York Labor Law Updates

Now that 2025 is here, it’s time to ensure you’ve adjusted for significant changes in New York labor laws that will affect businesses across the state. Whether you’re in food service, hospitality, or another industry, staying compliant is crucial.

Here’s everything you need to know to stay compliant with the changes that took effect on January 1, 2025.

1. Minimum Wage Updates

Starting January 1, 2025, new minimum wage rates will apply across New York:

• $16.50/hour for employees in New York City, Nassau, Suffolk, and Westchester.

• $15.50/hour for employees in the rest of New York State.

If you have employees in NY, make sure no one is being paid below these rates.

2. Food Service Workers: New Tipped Wage Requirements

For food service businesses employing tipped workers, here are the new wage requirements starting in 2025:

• NYC, Nassau, Suffolk, Westchester:

  • $11/hour base wage + $5.50 tip credit = $16.50/hour.

• Rest of NY State:

  • $10.35/hour base wage + $5.15 tip credit = $15.50/hour.

It’s essential to ensure that tipped workers are paid correctly to avoid compliance issues. If your payroll system isn’t set up to handle these changes, now’s the time to act.

3. New Overtime Salary Thresholds

Salaried employees who are exempt from overtime must meet new minimum salary thresholds starting January 1, 2025:

• NYC, Nassau, Suffolk, Westchester: $1,237.50/week.

• Rest of NY State: $1,161.65/week.

Employees earning less may qualify for overtime pay.

4. Paid Prenatal Care Leave: New for 2025

Starting in 2025, New York will require employers to provide paid prenatal care leave:

• Up to 20 hours of paid prenatal care leave per year at the employee’s regular rate of pay.

• This leave is in addition to regular paid sick leave and begins upon confirmed pregnancy.

Many business owners are unaware of this new requirement, which makes preparation even more critical.

Stay Ahead with Baron Payroll

These labor law updates are crucial for staying compliant and avoiding costly mistakes. If your current payroll provider isn’t keeping you informed about these changes, it may be time to switch to Baron Payroll.

Our team ensures you’re always up to date and compliant with the latest regulations, giving you peace of mind to focus on running your business.

Wondering how much it costs to work with us? Use our instant price calculator today to get your detailed estimate without talking with a salesperson.