New York: Exempt Salary Threshold Increased
|
APPLIES TO All Employers with NY Employees |
EFFECTIVE December 31, 2016 |
QUESTIONS? Contact HR On-Call |
Effective December 31, 2016, the New York State Department of Labor (“NYSDOL”) has adopted proposed amendments to the New York minimum wage orders that will increase the salary threshold for executive and administrative employees. Prior to the amendments, the executive/administrative salary exemption threshold was $675 per week ($35,100 annually).
The new exemption thresholds are scaled to employer size, and will gradually increase each year, per the table below:
| Effective Date | New York City | Nassau, Suffolk, and Westchester Counties | Employers outside of New York City and Nassau, Suffolk and Westchester Counties | |
| Employers of 11 or more employees | Employers of 10 or fewer employees | |||
| 12/31/2016 | $825/week, $42,900/year | $787.50/week,
$40,950/year |
$750/week, $39,000/year | $727.50/week, $37,380/year |
| 12/31/2017 | $975/week,
$50,700/year |
$900/week,
$46,800/year |
$825/week, $42,900/year | $780/week, $40,560/year |
| 12/31/2018 | $1,125/week,
$58,500/year |
$1,012.50/week,
$52,650/year |
$900/week, $46,800/year | $832/week, $43,264/year |
| 12/31/2019 | $1,125/week,
$58,500/year |
$975/week, $50,700/year | $885/week, $46,020/year | |
| 12/31/2020 | $1,050/week, $54,600/year | $937.50/week, $48,750/year | ||
| 12/31/2021 | $1,125/week, $58,500/year | |||
The NYSDOL’s website includes a FAQ addressing some salary exemption threshold questions, but does not clarify how employers should calculate a salary basis for employees who work in multiple locations. Additionally, New York employers should be prepared to review salary levels each year, as the federal overtime exemption rule may apply in locations where the federal salary test is higher than the statewide thresholds.
Action Items
- Review exempt employee salary rates to ensure they meet the salary threshold. If an exempt employee no longer meets the new threshold, consider increasing salaries accordingly based on primary work location, or reclassify the employee as non-exempt.
- Review labor budget to address yearly increases as the salary threshold continues to rise.
- Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.
© 2017 ManagEase, Incorporated.
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