on november 25, 2015, the rays traded yates to the cleveland indians for cash considerations. yates was subsequently designated for assignment on january 5, 2016. on january 8, 2016, the indians traded yates to the new york yankees in exchange for cash considerations. yates made the yankees' opening day roster in 2016. yates pitched in relief for the yankees for most of the season, although he was optioned to triple-a scranton/wilkes-barre on june 28, and then recalled on august 17. in 41 games for the yankees, he posted an era of 5.23 and 50 strikeouts in innings.