New York Labor and Employment Law Report
Reminder: New York Minimum Wage Rates and Salary Thresholds for the Executive and Administrative Exemptions Will Increase on December 31, 2020
December 11, 2020
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.
Minimum Wage Rates
Effective December 31, 2020, the minimum wage rates for employees other than fast food employees will be:
- For employers outside of New York City, Nassau, Suffolk, and Westchester counties: $12.50 per hour (increase of $0.70 per hour);
- For employers in Nassau, Suffolk, and Westchester counties: $14.00 per hour (increase of $1.00 per hour); and
- For employers in New York City: $15.00 per hour (no increase).
The tip credit for all employees covered by the Minimum Wage Order for Miscellaneous Industries and Occupations has also been eliminated effective December 31, 2020, so the full minimum wage must be paid without considering the employee's receipt of tips. The elimination of the tip credit will not have any impact on food service workers and other employees of hotels and restaurants who customarily receive tips because those employees are covered by the Hospitality Industry Wage Order.
Effective December 31, 2020, the minimum wage rates for fast food employees will be:
- For fast food employees outside of New York City: $14.50 per hour (increase of $0.75 per hour); and
- For fast food employees in New York City: $15.00 per hour (no increase).
Employers in New York should keep in mind that any hours worked by non-exempt employees on New Year's Eve must be paid at the new minimum wage rates. It is not sufficient to put these new rates into effect beginning on New Year's Day.
Exempt Salary Thresholds
The salary thresholds to qualify for the executive and administrative exemptions effective December 31, 2020, will be:
- For employers outside of New York City, Nassau, Suffolk, and Westchester counties: $937.50 per week (increase of $52.50 per week);
- For employers in Nassau, Suffolk, and Westchester counties: $1,050.00 per week (increase of $75.00 per week); and
- For employers in New York City: $1,125.00 per week (no increase).
New York does not set a salary threshold to qualify for the professional exemption, but employees must meet the federal threshold of $684.00 per week that went into effect on January 1, 2020, in order to qualify for the professional exemption. For all of the white-collar exemptions, employees must also meet the applicable duties requirements.
New York's salary thresholds for the executive and administrative exemptions are "inclusive of board, lodging, or other allowances and facilities." The federal salary threshold of $684.00 per week to qualify for the white-collar exemptions must be "exclusive of board, lodging, or other facilities." So, the value of meals and/or housing provided to an employee can be taken into consideration in determining whether the employee meets the New York salary threshold to qualify for the executive or administrative exemption, but cannot be taken into consideration in determining whether the employee meets the federal salary threshold.
A chart summarizing the minimum wage rates, uniform maintenance allowances, meal and lodging credits, and exempt salary thresholds under the Miscellaneous Industries Wage Order can be found here. A chart summarizing the same information under the Hospitality Industry Wage Order can be found here.
