New York’s Salary Threshold for Exempt Employees Likely to Increase

The New York State Department of Labor, on October 19, proposed amendments to its existing wage orders that would significantly increase the salary threshold from the current $675 per week. Reflecting the State’s minimum wage level gradual increases, the proposal would raise the salary threshold in tiers:

Large Employers (11 or more employees) in New York City

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

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

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

 

Small Employers (10 or fewer employees) in New York City

$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; and

$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; and

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

 

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;

$832.00 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

 

If adopted, the minimum requirement for exempt employees in New York will surpass the federal threshold of $973 at various points in time, the earliest on December 31, 2017 for “large” New York City employers. However, the FLSA salary levels are subject to automatic revision every three years, beginning in 2020, based on the 40th percentile of full-time salaried workers in the region in which the salary level is lowest (historically, the South).

 

In addition to the increased salary threshold, the proposed Wage Orders also adjusts the amount employers can deduct for a uniform allowance and claim as a meal and tip credit in line with the gradual increase of the minimum wage toward $15.

 

Please contact Douglas Lipsky of Bronson Lipsky with any questions on New York minimum wage, overtime and other wage and hour laws.