2018 Minimum Wage and Mileage Rate, other Payroll & HR Issues

Dec 20, 2017

2018 minimum wage and mileage rateWith a new year just around the corner, there are many trending topics that will impact employers, particularly those in New York, including the 2018 minimum wage and mileage rate, plus other payroll and HR issues that your business should be aware of.

Minimum Wage
On December 31, 2017, the minimum wage for employers in New York City with 11 or more employees increases to $13.00 per hour, while those in the city with 10 or fewer employees must pay $12.00 per hour. Employers in Nassau, Suffolk, and Westchester Counties must pay $11.00 per hour, and all other employers must pay $10.40 per hour.

The minimum wage for fast food workers—regardless of employer size—will increase to $13.50 per hour for those working in New York City, and $11.75 per hour for those outside the city.

Mileage Rate
The standard mileage rates for the use of a car (plus vans, pickups, and panel trucks) are increasing, effective January 1, 2018. The new rates will be:

  • 54.5 cents per mile for business miles driven (was 53.5 cents in 2017)
  • 18 cents per mile driven for medical or moving purposes (was 17 cents in 2017)
  • 14 cents per mile driven in service of charitable organizations (no change from 2017)

New York Paid Family Leave
Beginning January 1, 2018, just about every employer in New York State will need to comply with the New York Paid Family Leave (NY PFL) law. Any employer that has 1 or more employees is required to provide coverage unless they are a Public Employer or employer-only exempt employees.

Employees can use the benefit to:

  • Bond with a newborn, adopted or foster-care child during the first 12 months after birth or placement
  • Care for a seriously ill family member
  • Address important needs related to a family member’s military service

There are many ways employers are impacted by this law. Here are some helpful links and resources to ensure you have all the tools you need to stay in compliance.

Electronic OSHA Injury Reports Due December 31
Last August, OSHA indicated that it would delay electronic injury reporting requirements. Originally slated to go into effect for certain employers on July 1 of this year, the date has now been pushed back a third time, to December 31, 2017. Employers who have not already done so should prepare to submit information from their completed 2016 Form 300A electronically by the end of the year.

The electronic reporting website has been available since August and can be accessed here.

New York Overtime Minimum Salary Levels
A year ago, the proposed overtime exemption rule for employers in New York State was published by the New York Department of Labor, with the new rule taking effect on December 31, 2016. These exemptions apply to executive, managerial, or administrative employees who meet the minimum salary requirements.

The following salary levels will now become the threshold for the executive and administrative exemptions:

  • Employers in New York City – Large employers (11 or more employees)
    $975.00 per week ($50,700 annually) on and after 12/31/17
  • Employers in New York City – Small employers (10 or fewer employees)
    $900.00 per week ($46,800 annually) on and after 12/31/17
  • Employers in Nassau, Suffolk, and Westchester Counties
    $825.00 per week ($42,900 annually) on and after 12/31/17
  • Employers Outside of New York City, Nassau, Suffolk, and Westchester Counties
    $780.00 per week ($40,560 annually) on and after 12/31/17

New York Unemployment Insurance Rate Increase
The 2017 New York State taxable wage base per employee for Unemployment Insurance (UI) will increase from $10,900 to $11,100. For 2017, the lowest total UI Rate for NY is 1.3% and the highest UI Rate is 9.1% (2018 not currently published).

For more information on how GTM helps businesses stay compliant with and informed about wage and labor laws, contact us at (518) 373-4111.

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