New York Employers Should Prepare Now for Upcoming Increases to Minimum Wage and Exemption Thresholds

Hodgson Russ LLP

As the year end is quickly coming, employers are reminded of minimum wage increase and exemption thresholds.

New York State Minimum Wage

Most minimum wage rates increase on December 31, 2019. Workers in New York City employed by businesses with 11 or more employees must be paid a minimum wage rate of $15.00 per hour (same as December 31, 2018 rate). Workers in New York City employed by businesses with 10 employees or fewer must be paid a minimum wage rate of $15.00 per hour (up from $13.50). Workers in Nassau, Suffolk, or Westchester Counties must be paid a minimum wage rate of $13.00 per hour (up from $12.00). Workers in the rest of the State must be paid a minimum wage rate of $11.80 per hour (up from $11.10).

Minimum Salary Levels for Exempt Employees

Effective December 31, 2019, employees who are exempt from overtime under the executive and administrative exemptions[1] must receive a certain minimum salary to retain their exempt status. The minimum salary for such exempt employees working in New York City for employers with 11 or more employees is $1,125.00 per week (same as December 31, 2018 threshold). Exempt employees working in New York City for employers with 10 or fewer employees must be paid a minimum salary of $1,125.00 per week (up from $1,012.50). Exempt employees working in Nassau, Suffolk, or Westchester Counties must be paid a minimum salary of $975.00 per week (up from $900.00). Exempt employees working in the rest of the State must be paid a minimum salary of $885.00 (up from $832.00).

 

[1] New York has declined to establish a salary threshold for professional employees.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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