On Dec. 27, 2023, the New York State Department of Labor (NYSDOL) published a Notice of Adoption of its proposed regulations in the State Register, which means the minimum weekly salary to qualify for the executive and administrative exemptions will officially increase effective Jan. 1, 2024. The NYSDOL did not make any changes to its proposed regulations, so the following increases will occur:
Effective on Jan. 1, 2024, the minimum hourly wage in New York will increase from $15 to $16 in downstate New York (New York City and Nassau, Suffolk and Westchester counties), and from $14.20 to $15 in upstate New York. In all regions of New York, the minimum wage will increase by $0.50 on Jan. 1, 2025, and by another $0.50 on Jan. 1, 2026.
Effective Dec. 31, 2022, the minimum wage in upstate New York (i.e., every part of the state except New York City, Nassau, Suffolk and Westchester counties) will increase from $13.20 to $14.20 per hour. The New York State Department of Labor recently announced this one dollar increase – which is approximately a 7.5% increase.
The minimum wage for employees working in New York City, Nassau, Suffolk and Westchester counties remains unchanged at $15.00 per hour. The minimum wage for fast food employees across the state also remains unchanged at $15.00 per hour. The minimum wage for upstate New York will continue to increase on an annual basis until the statewide minimum wage rate reaches $15.00 per hour regardless of locale. A chart summarizing the minimum wage rates throughout the state is available here.
Employers should keep two important things in mind as they prepare to comply with this forthcoming minimum wage increase. First, the minimum wage increase for goes into effect on Dec. 31, 2022. Therefore, non-exempt employees who work on New Year’s Eve should be paid the increased minimum wage for any hours worked. Second, the applicable minimum wage rate is determined with respect to where the work is performed – not where the employer is located. Thus, an employee working in New York City must be paid at the minimum wage rate applicable to downstate even if his or her employer is headquartered in upstate where the minimum wage has not yet reached $15.00.
An increase to the salary threshold for employees who are classified as exempt under New York’s executive and administrative exemptions has not been finalized for 2023. However, proposed regulatory text issued by the Department of Labor suggests the minimum weekly salary threshold for the executive and administrative exemptions will increase from $990 to $1064.25 per week (inclusive of board, lodging and other allowances and facilities) in upstate New York effective Dec. 31, 2022. Historically, the exempt salary threshold has been 75 times the minimum wage rate; this proposed increase, which will likely be implemented, roughly follows that pattern. There is no proposed increase to the salary threshold for exempt executive and administrative employees working in New York City, Nassau, Suffolk and Westchester counties, so that threshold will remain at $1,125 per week. There is still no state salary threshold to qualify for the professional exemption, so the federal threshold of $684.00 per week remains applicable for the professional exemption. Employees must continue to meet specified duties requirements to qualify for an exemption.
For any questions about this minimum wage increase, please contact Hannah Redmond, any attorney in Bond’s labor and employment practice or the Bond attorney with whom you are regularly in contact.
On Jan. 15, 2022, the New York City council amended the City Human Rights Law to encourage equity and transparency in pay.1 This amendment is part of larger national trend towards greater pay transparency. Several states have adopted similar laws, and the New York State legislature has introduced pay transparency legislation which is currently under consideration. On March 22, 2022, the City’s Commission on Human Rights issued guidance for employers providing some much-needed clarity in advance of the effective date. This blog post will outline the requirements of the new law, informed by that guidance, and it will provide recommendations for what employers can do now to get ready for this new compliance obligation.
Ever since the New York State Department of Labor (NYSDOL) announced an increase in the minimum wage from $12.50 per hour to $13.20 per hour in areas outside of New York City, Nassau, Suffolk and Westchester counties effective Dec. 31, 2021, we have been expecting a proportionate increase in the minimum weekly salary to qualify for the executive and administrative exemptions. For the last few years, the minimum weekly salary to qualify for the executive and administrative exemptions has been 75 times the minimum hourly wage. The NYSDOL has confirmed that this proportionate increase will occur effective on Dec. 31, 2021.
Under the New York State Minimum Wage Act, minimum wage rates in New York increase each year on December 31 until reaching $15.00 per hour. In New York City and for large fast-food companies throughout the state, the minimum wage has already reached its $15.00 maximum.
Employers in New York will be required to comply with the new state minimum wage rates and the new state salary thresholds to qualify for the executive and administrative exemptions, effective December 31, 2020.
Last week, the New York State Department of Labor formally adopted an amendment to the Minimum Wage Order for Miscellaneous Industries and Occupations that cuts the tip credit for all miscellaneous industry workers in half effective June 30, 2020. The amendment also eliminates the tip credit completely for miscellaneous industry workers effective December 31, 2020. As we previously reported on this blog, the NYSDOL recommended the elimination of the tip credit for miscellaneous industry workers after holding multiple hearings across the state regarding the impact of tip credits and Gov. Cuomo announced in January that the NYSDOL's recommendation would be implemented in two phases.
The New York State Department of Labor, after holding multiple hearings across the state regarding the impact of tip credits for employees covered by the Minimum Wage Order for Miscellaneous Industries and Occupations, issued a report recommending the elimination of the tip credit for all miscellaneous industry workers. Governor Cuomo recently announced that this recommendation will be implemented in two phases. Effective June 30, 2020, the tip credit will be cut in half. Effective December 31, 2020, the tip credit will be eliminated entirely. This will affect an estimated 70,000 employees, in occupations such as car wash attendants, nail and hair salon workers, tow truck drivers, dog groomers, wedding planners, tour guides, and valet parking attendants. This will not affect employees covered by the Hospitality Industry Wage Order, such as service employees and food service workers in hotels and restaurants.
Although the minimum wage rate under the Fair Labor Standards Act remains $7.25 per hour and the U.S. Department of Labor has not issued any new proposed regulations to raise the minimum salary to qualify for a white-collar exemption under federal law, employers in New York will be required to comply with the new state minimum wage rate and the new state salary threshold to qualify for the executive and administrative exemptions, effective December 31, 2018.
Although the minimum wage rate under the Fair Labor Standards Act remains $7.25 per hour and the U.S. Department of Labor’s efforts to raise the minimum salary to qualify for a white-collar exemption under federal law have stalled, employers in New York should be aware that the state minimum wage rate and the state salary threshold to qualify for the executive and administrative exemptions will increase effective December 31, 2017.
The increases to the state minimum wage effective December 31, 2017, are as follows:
Employers outside of New York City, Nassau, Suffolk, and Westchester counties: $10.40 per hour
Employers in Nassau, Suffolk, and Westchester counties: $11.00 per hour
Employers in New York City with 10 or fewer employees: $12.00 per hour
Employers in New York City with 11 or more employees: $13.00 per hour
Fast food employees will be entitled to an even higher wage rate effective December 31, 2017, as follows:
Fast food employees outside of New York City: $11.75 per hour
Fast food employees in New York City: $13.50 per hour
The salary threshold to qualify for the executive and administrative exemptions effective December 31, 2017, are as follows:
Employers outside of New York City, Nassau, Suffolk, and Westchester counties: $780.00 per week
Employers in Nassau, Suffolk, and Westchester counties: $825.00 per week
Employers in New York City with 10 or fewer employees: $900.00 per week
Employers in New York City with 11 or more employees: $975.00 per week
New York does not set a salary threshold to qualify for the professional exemption, so employees must meet the current federal salary threshold of $455.00 per week to qualify for the professional exemption. For all of the white-collar exemptions, employees must also meet the applicable duties requirements.
A chart summarizing the minimum wage rates, tip credits, uniform maintenance allowances, meal and lodging credits, and exempt salary thresholds under the Miscellaneous Industries Wage Order can be found here. A chart summarizing this same information under the Hospitality Industry Wage Order can be found here.
