§ 26 §664 — Minimum wage; overtime rate

Except as otherwise provided in this subchapter, an employer may not employ any employee at a rate less than the rates required by this section.
1.
Minimum wage.
The minimum hourly wage is $7.50 per hour. Starting January 1, 2017, the minimum hourly wage is $9.00 per hour; starting January 1, 2018, the minimum hourly wage is $10.00 per hour; starting January 1, 2019, the minimum hourly wage is $11.00 per hour; and starting January 1, 2020, the minimum hourly wage is $12.00 per hour. On January 1, 2021 and each January 1st thereafter, the minimum hourly wage then in effect must be increased by the increase, if any, in the cost of living. The increase in the cost of living must be measured by the percentage increase, if any, as of August of the previous year over the level as of August of the year preceding that year in the Consumer Price Index for Urban Wage Earners and Clerical Workers, CPI-W, for the Northeast Region, or its successor index, as published by the United States Department of Labor, Bureau of Labor Statistics or its successor agency, with the amount of the minimum wage increase rounded to the nearest multiple of 5¢. If the highest federal minimum wage is increased in excess of the minimum wage in effect under this section, the minimum wage under this section is increased to the same amount, effective on the same date as the increase in the federal minimum wage, and must be increased in accordance with this section thereafter.
2.
Tip credit.
An employer may consider tips as part of the wages of a service employee, but such a tip credit may not exceed 50% of the minimum hourly wage established in this section except that from January 1, 2017 to December 31, 2017, the minimum cash wage paid directly to a tipped service employee may not be less than $5.00 per hour. An employer who elects to use the tip credit must inform the affected employee in advance, as provided for in this subsection, and must be able to show that the employee receives at least the minimum hourly wage when direct wages and the tip credit are combined within the established 7-day workweek. Upon a satisfactory showing by the employee or the employee's representative that the actual tips received were less than the tip credit, the employer shall increase the direct wages by the difference.
2-A.
Tip pooling.
This section may not be construed to prohibit an employer from establishing a valid tip pooling arrangement that does not violate the federal Fair Labor Standards Act of 1938 and regulations made pursuant to that Act as long as:
2-B.
Service charges.
An employer in a banquet or private club setting that adds a service charge shall notify the customer that the service charge does not represent a tip for service employees. The employer in a banquet or private club setting may use some or all of any service charge to meet its obligation to compensate all employees at the rate required by this section.
3.
Overtime rate.
An employer may not require an employee to work more than 40 hours in any one week unless 1 1/2 times the regular hourly rate is paid for all hours actually worked in excess of 40 hours in that week. The regular hourly rate includes all earnings, bonuses, commissions and other compensation that is paid or due based on actual work performed and does not include any sums excluded from the definition of "regular rate" under the Fair Labor Standards Act, 29 United States Code, Section 207(e).
4.
Compensatory time.
To the extent permitted under the federal Fair Labor Standards Act of 1938, as amended, 29 United States Code, Section 207(o), the overtime pay requirement applicable to executive or judicial employees as described in subsection 3, paragraph D may be met through compensatory time agreements.

Legislative History

PL 1965, c. 410, §5 (AMD). PL 1967, c. 333 (AMD). PL 1967, c. 466, §5 (AMD). PL 1969, c. 184 (AMD). PL 1969, c. 356 (AMD). PL 1969, c. 504, §43 (AMD). PL 1969, c. 590, §41 (AMD). PL 1971, c. 78, §1 (AMD). PL 1971, c. 415 (AMD). PL 1971, c. 620, §13 (AMD). PL 1971, c. 622, §88 (AMD). PL 1973, c. 420 (AMD). PL 1973, c. 467 (AMD). PL 1973, c. 625, §171 (AMD). PL 1973, c. 752, §§1,2 (AMD). PL 1975, c. 23 (AMD). PL 1975, c. 352 (AMD). PL 1979, c. 54 (AMD). PL 1979, c. 516, §3 (AMD). PL 1983, c. 857 (AMD). PL 1985, c. 76, §2 (AMD). PL 1985, c. 576 (AMD). PL 1987, c. 738, §§1,2 (AMD). PL 1991, c. 507, §2 (AMD). PL 1991, c. 544, §1 (AMD). PL 1993, c. 233, §1 (AMD). PL 1993, c. 233, §3 (AFF). PL 1993, c. 434, §1 (AMD). PL 1993, c. 434, §8 (AFF). PL 1995, c. 305, §1 (RPR). PL 1995, c. 510, §1 (AMD). PL 1997, c. 136, §1 (AMD). PL 2001, c. 297, §1 (AMD). PL 2001, c. 336, §1 (AMD). PL 2001, c. 628, §§1-3 (AMD). PL 2001, c. 628, §5 (AFF). PL 2003, c. 423, §§1,2 (AMD). PL 2003, c. 423, §5 (AFF). PL 2003, c. 697, §1 (AMD). PL 2005, c. 578, §1 (AMD). PL 2007, c. 360, §5 (AMD). PL 2007, c. 367, §2 (AMD). PL 2007, c. 640, §§4-6 (AMD). PL 2011, c. 118, §§3, 4 (AMD). PL 2011, c. 681, §§1-3 (AMD). IB 2015, c. 2, §§1, 2 (AMD). PL 2017, c. 219, §15 (AMD). PL 2017, c. 272, §1 (AMD). PL 2019, c. 10, §1 (AMD). PL 2019, c. 387, §§1-3 (AMD). PL 2019, c. 387, §4 (AFF). PL 2023, c. 179, §§1, 2 (AMD).