PAYROLL & TAXES

2021 Minimum Wage Updates for NYS and NJ

December 28, 2020
Brand's Paycheck

As with every new year, many states, including New York and New Jersey, have increased their minimum wage rates for 2021.

In most states, the increased rate becomes effective on January 1, 2021. In New York State, on the other hand, the increased rate becomes effective on December 31, 2020.  Employers need to be mindful of this. If a single paycheck includes dates prior to December 31, 2020, and post-December 30, 2020, they only need to pay the higher rate for the work performed on or after December 31st.

What are the new rates for New York State?

  • New York City: $15.00 across the board for all employers regardless of size or industry
  • Long Island and Westchester: $14.00 for all employers except for fast-food employees who now get $14.50
  • The remainder of New York State: $12.50 for all employers except for fast-food employees who now get $14.50

What are the new rates for New Jersey?

  • Employers with 6+ employees: $12.00
  • Employers with 1-5 employees: $11.10
  • Tipped employees: $4.13
  • Agricultural employees: $10.44
  • Seasonal employees (employed 5/1-9/30): $11.10

Our recommendations:

We recommended that you check your employee-rate-setup before the end of the year to ensure that all employees are set to have their rates updated when the minimum wage changes. At Brand’s Paycheck, we’re looking out for you. If we notice that an employee appears to be set up below the minimum wage, we will update, with your permission, all employees to the minimum wage applicable to them.

Questions? Email cs@brandspaycheck.com.