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New York’s Minimum Salary for Exemption and Minimum Hourly Wage Increasing in the New Year

Effective December 31, 2018, employers in New York State will face a higher salary threshold for exempt executive and administrative employees as well as an elevated minimum hourly wage. The increases are part of the amendments to the minimum wage orders put in place in 2016.

Salary basis thresholds specifically for workers fitting within the executive and administrative exemptions will increase as follows:

  • Employers in New York City
    • Employers with 11 or more employees
      • $1,125.00 per week (58,500.00 annually) as of December 31, 2018
    • Employers with 10 or fewer employees
      • $1,012.50 per week ($52,650.00 annually) as of December 31, 2018
      • $1,125.00 per week ($58,500.00 annually) as of December 31, 2019
  • Employers in NassauSuffolk, and Westchester Counties
    • $900.00 per week ($46,800.00 annually) as of December 31, 2018
    • $975.00 per week ($50,700.00 annually) as of December 31, 2019
    • $1,050.00 per week ($54,600.00 annually) as of December 31, 2020
    • $1,125.00 per week ($58,500.00 annually) as of December 31, 2021
  • Employers in remainder of New York State
    • $832.00 per week ($43,264.00 annually) as of December 31, 2018
    • $885.00 per week ($46,020.00 annually) as of December 31, 2019
    • $937.50 per week ($48,750.00 annually) as of December 31, 2020

The hourly minimum wage will increase as follows:

  • Employers in New York City
    • Employers with 11 or more employees
      • $15.00 per hour
    • Employers with 10 or fewer employees
      • $13.75 per hour
  • Employers in NassauSuffolk, and Westchester Counties
    • $12.00 per hour
  • Employers in the remainder of New York State
    • $11.10 per hour

Employer Next Steps

Employers should immediately take steps to identify those New York-based employees designated as exempt executives and administrators and, to the extent necessary, adjust those salaries to meet or exceed the new thresholds. In the alternative, where employers do not wish to adjust salaries, those positions need to be reclassified as non-exempt. Keep in mind that the salary requirement is just one component of the test for exempt status; those treated as exempt must also satisfy a duties test, but that test has not been modified.

The salary thresholds applicable to impacted employees must be those which are mandated in their primary work locations as of December 31, 2018.

Where employees are reclassified as non-exempt, employers should also ensure that, as of December 31, 2018, those employees are advised about the requirements for proper recording of work time, including overtime hours, as well as any and all other workplace rules which will now apply to them.

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About this Author

Mary A. Gambardella Stamford Labor Attorney
Partner

Mary A. Gambardella is a Partner in the Stamford office and is the Chair of the Labor, Employment and Benefits Department, Co-Chair of the Diversity Committee and Chair of the Women's Network Committee.

Ms. Gambardella has decades of experience assisting clients in a wide range of industries, as well as educational institutions, in developing and implementing policies and procedures to ensure compliance with ever-changing laws and regulations; dealing with employment decisions in all categories, including sensitive discipline and termination processes; complicated leaves of absence...

203-363-7662

Lawrence Peikes is a partner in the firm's Stamford office where he represents management in all aspects of labor and employment law.  Lawrence's practice encompasses federal and state court litigation, arbitration and mediation of employment discrimination claims, wrongful discharge claims, wage and hour claims, disputes over the enforcement of covenants not to compete, trade secret protection, and other employment related controversies.  Lawrence also represents employers in administrative proceedings before such agencies as the U.S. Equal Employment Opportunity Commission, the Connecticut Commission on Human Rights and Opportunities, The National Labor Relations Board, the U.S. and Connecticut Departments of Labor, and other administrative bodies charged with the enforcement of federal and state labor laws.  In addition, Lawrence regularly counsels employers with respect to employee terminations and discipline, collective bargaining, employment contracts, workplace discrimination issues, alternative dispute resolution, and all other aspects of the employment relationship.  Lawrence frequently lectures and writes on employment law issues, such as sexual harassment and developments under the federal civil rights laws.  Lawrence served as a Chapter Editor on the BNA's recently published Fair Labor Standards Act treatise.

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