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New York Adopts Increased Salary Thresholds for Minimum Wage and Overtime Exemptions

15 Jan

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  Update Applicable to:      Effective date
  All employers and multi-state businesses with at least 1 worker in New York  January 1, 2024 – Salary Thresholds for the executive and administrative exemptions in New York City, Westchester, and Long Island  

March 13, 2024 – Certain Salary Thresholds for minimum wage and overtime exemption under Article 6  

What happened?

On December 27, 2023, the New York Department of Labor (NYDOL) formally adopted the regulations increasing salary thresholds for minimum wage and overtime exemptions for executive or administrative employees under New York Labor.

What are the details?

On September 15, 2023, New York Governor Kathy Hochul signed legislation (S.B. 5572) that changes the salary threshold governing various exemptions under Article 6 of the New York Labor Law, raising the minimum salary from $900 to $1,300 per week and adjusting some definitions (190(7), 192(2) and 198-c(3)).

Shortly after, on October 4, 2023, the NYDOL published proposed regulations aiming to increase the salary threshold for minimum wage and overtime purposes. The professional exemption will continue to be subject to the federal professional exemption salary threshold of $684.00 per week ($35,568.00 per year).

On December 27, 2023, NYDOL issued a notice that the proposed regulations were adopted, and the final version of the rules can be found here

Before these changes, the salary levels were $1,125/week ($58,500/year) in New York City and Nassau, Suffolk, and Westchester Counties, and $1,064.25/week ($55,341/year) elsewhere in the State.

From January 1, 2024, and forward, the Salary Thresholds for the executive and administrative exemptions in New York City, Westchester and Long Island will be as follows:

YearNew York City, Westchester, and Long IslandThe Rest of New York State
2024$1,200.00/week
($62,400.00/year)
$1,124.20/week
($58,458.40/year)
2025$1,237.50/week
($64,350.00/year)
$1,161.65/week
($60,405.80/year)
2026$1,275.00/week
($66,300.00/year)
$1,199.10/week
($62,353.20/year)

Business Considerations

  • Determine if these salary requirements are met within your exempt workforce and adjust accordingly. Remember that salary threshold and certain duties must be met to qualify for the exemption.
  • Review and update your pay policies and procedures to ensure compliance with the new regulations.

Resources:

Source References

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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