Restaurant Labor Costs in New York

New York runs two minimum wage rates: $17.00 in New York City, Long Island and Westchester, and $16.00 across the rest of the state. Tipped rates vary by region and by type of employer, and the Department of Labor publishes them separately rather than as a single figure. That regional split makes New York one of the more complicated states to model if you operate more than one site.

Figures verified July 2026

Statutory rates

Statutory wage rates in New York
Rate	Per hour	Source
Minimum wage — NYC, Long Island, Westchester	$17.00/hr	U.S. Department of Labor, Wage and Hour DivisionRevised 1 January 2026
Minimum wage — remainder of New York State	$16.00/hr	U.S. Department of Labor, Wage and Hour DivisionRevised 1 January 2026

Next scheduled change: 1 January 2027. New York rates are normally adjusted on 1 January.

On role-level pay data

The Bureau of Labor Statistics publishes median pay by role for New York State, linked below. Be careful reading it: a single statewide median blends Manhattan against upstate, and the two markets pay very differently.

From an hourly rate to a labor cost percentage

The rates above are what you may not pay below. What an hour costs you is larger, once the on-costs below are added, and the labor cost percentage calculator will turn the two halves into a figure you can compare. The prime cost calculator then tells you whether that number and your food cost together leave room for rent and profit.

Tips and tip handling

Tipped minimum wage rates in New York vary by region and by type of employer, and the state Department of Labor publishes them separately from the general minimum. If you run food service, check the current food service worker rate for your region directly with NYSDOL rather than working from the general figure, because the two are not the same number.

If you need to write this down for your team, the tip-out policy generator produces a plain-language policy document, and the tip-out calculator handles the nightly split.

What else drives your labor cost here

Two wage floors, one business

Operators with sites either side of the NYC, Long Island and Westchester line are running two different floors under one set of accounts. Blending them into a single labor percentage hides which site is genuinely performing and which is just cheaper to staff.

Payroll taxes and benefits

Employer payroll taxes, unemployment insurance and any health coverage all sit above gross wages, and New York's mandated benefits add to that. The National Restaurant Association's benchmarks include benefits, so compare like with like.

Spread of hours and split shifts

New York's spread-of-hours rules mean a long split shift can cost you an extra hour's pay. Restaurants running lunch and dinner with the same staff are the ones most exposed.

For what your percentage should be measured against, see the cost benchmarks by type of food business.

Run your own numbers

Labor Cost Percentage CalculatorTurn total labor cost and sales into a labor % you can compare against industry norms.Tip-Out CalculatorSplit a shift’s tips in seconds — support tip-outs off the top, then pooled by hours. Remembers your team.Prime Cost CalculatorCombine food and labor into your prime cost % — the single most-watched number in restaurant P&Ls.Break-Even CalculatorFind the revenue — and the number of covers — you need to cover every cost.

Faster turns in the highest-rent rooms in the country

New York dining rooms are small and expensive, so the gap between a table clearing and the next party sitting is costing you more than it would anywhere else. Bzz closes it.

Frequently asked questions

What is the minimum wage in New York in 2026?

$17.00 an hour in New York City, Long Island and Westchester, and $16.00 in the rest of the state.

What is the tipped minimum wage in New York?

It varies by region and employer type, and New York publishes food service worker rates separately from the general minimum. Check the current figure with the New York State Department of Labor for your region.

Why does New York have two minimum wages?

The state sets a higher rate for New York City, Long Island and Westchester to reflect the cost of living, with a lower rate applying elsewhere.

Labor costs elsewhere

Restaurant Labor Costs in the United StatesFederal floor, the tip credit, BLS median pay by role, and the national benchmarks.
Restaurant Labor Costs in CaliforniaOne of the highest state floors, and no tip credit at all.
Restaurant Labor Costs in MassachusettsA $15 floor with one of the larger tip credits in the north-east.

Rates on this page are reproduced from the government sources listed below and were last checked on 20 July 2026. They are published for orientation and are not legal advice — before you set pay, confirm the current figure against the primary source for your jurisdiction, including any local ordinance that may exceed it. The headline rate at time of writing was $17.00 per hour.

Sources

U.S. Department of Labor, Wage and Hour Division — Minimum Wages for Tipped EmployeesRevised 1 January 2026 · Government / statistical