As New York enters 2023, its the time for many to solidify their New Year's resolutions. But it looks like by law, employers will already have one resolution laid out again this year – to pay minimum wage employees a historic increase in 2023.

For the tenth year in a row, the New York State Department of Labor is increasing minimum wage. It’s a part of the state’s continued long-term plan to make incremental changes to the wage until it reaches $15 per hour. For all areas outside of downstate, it’s record-breaking.

Why This Year's New York Minimum Wage Increase Is Historic

A businessman with a paycheck

NYC, Long Island, and Westchester County already hit their $15 per hour goal last year. For the rest of New York, the minimum wage for Upstate, Central, and Western New York workers will be at least $14.20 an hour starting Saturday, December 31.

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At a full dollar more than the $13.20 set in place NYE 2021, this is the largest minimum wage increase Upstate has ever had. This rate will be in effect through December 30, 2023 after being fully approved and accepted by state government. This year comes with a dramatic change in cash wage/tip wage balance for service employees, vastly lowering the cash wage.

Behind The Record-Breaking Increase

The proposed minimum wage increases in New York State to take effect on December 31, 2022
New York Department of Labor

The previous largest minimum wage uptick was $.90 in March 31, 2000, when New York raised pay for the whole state from $4.25 to $5.15. The full dollar increase comes at a time when inflation and economic turmoil are on everyone’s minds. Labor Commissioner Roberta Reardon says, “continuing with the multi-year plan to raise the minimum wage is in line with market standards and ensures that no worker is left behind.”

The New York Department of Labor says an average of 200,000 workers in each county will be affected by the increase. Based on 40-hour weeks at 50 weeks a year, the new minimum wage would give Upstate workers a pre-tax salary of around $28,400.

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