Effective December 31, 2017, the minimum wage for New York employers will increase as set forth in the chart below. The applicable minimum wage rates will vary depending on where the employee performs his/her job.
NYC – Large Employers (of 11 or more): $13.00
NYC – Small Employers (10 or less): $12.00
Long Island & Westchester: $11.00
Remainder of New York State: $9.70
New York’s salary basis thresholds for the administrative and executive exemptions will also increase as follows:
Salary Thresholds for Executive & Administrative Employee Exemptions
NYC – Large Employers (of 11 or more) $975.00/week ($50,700.00 annually)
NYC – Small Employers (10 or less) $900.00/week ($46,800.00 annually)
Long Island & Westchester $825.00/week ($42,900.00 annually)
Remainder of New York State $780.00/week ($40,560.00 annually)
Remember that both federal law (Fair Labor Standards Act, or FLSA) and the New York State Minimum Wage Act and their respective applicable regulations generally require the payment of overtime wages for work performed after 40 hours per workweek (at a rate of 1.5 times the employee’s regular rate of pay). The FLSA and the New York State Minimum Wage Act exempt employees who meet the criteria for bona fide “executive, administrative or professional” categories from overtime pay requirements.
In order for an employee to be classified as exempt from overtime pay laws under New York’s criteria for the executive or administrative “white-collar” exemptions, that employee must: (1) be paid on a salaried basis, (2) meet the applicable salary threshold (see above), and (3) meet the duties tests of the executive and/or administrative exemptions.
Recommendations
Employers should be sure to post the updated wage rates in their workplaces and review their pay practices to ensure compliance with required minimum wage increases and employee classifications before the New Year.
