New York’s Salary Threshold for Executive and Administrative Exemptions Are Increasing

As many had long-expected (including yours truly), the New York State Department of Labor published today (December 29) its final rule increasing the salary threshold for exempt executive and administrative employees in New York State.

While the fate of the US DOL’s regulations remains unclear with the incoming Trump administration, New York employers now know that the salary threshold applicable to exempt executive and administrative employees will increase effective December 31st.

Under New York’s Labor Law, the salary threshold for executive and administrative employees (NY law does not set a salary threshold for professional employees and thus the federal salary of $455 applies) is currently $675 per week — 75 times the current minimum wage of $9.00 per hour. With the minimum wage set to gradually increase in coming years (at varying rates based on geography), the N.Y. DOL has implemented corresponding increases in the applicable salary threshold. The first of these increases will take effect on December 31.

Specifically, the increases to New York’s salary threshold for executive and administrative employees are as follows:

Employers Outside of New York City, Nassau, Suffolk, and Westchester Counties

$727.50 per week on and after 12/31/16;

$780.00 per week on and after 12/31/17;

$832.50 per week on and after 12/31/18;

$885.00 per week on and after 12/31/19;

$937.50 per week on and after 12/31/20

 

Employers in New York City

“Large”  NYC employers (11 or more employees)

$825.00 per week on and after 12/31/16;

$975.00 per week on and after 12/31/17;

$1,125.00 per week on and after 12/31/18

 

“Small” NYC employers (10 or fewer employees)

$787.50 per week on and after 12/31/16;

$900.00 per week on and after 12/31/17;

$1,012.50 per week on and after 12/31/18;

$1,125.00 per week on and after 12/31/19

 

Employers in Nassau, Suffolk, and Westchester Counties

$750.00 per week on and after 12/31/16;

$825.00 per week on and after 12/31/17;

$900.00 per week on and after 12/31/18;

$975.00 per week on and after 12/31/19;

$1,050.00 per week on and after 12/31/20

$1,125.00 per week on and after 12/31/21

 

So what does this all mean? It means that if you have any exempt executive or administrative employees who are currently paid less than the applicable salary threshold set forth above, you must increase their salary to at or above that threshold or reclassify them as nonexempt.

Contact Doug Lipsky if you have any questions.