Increases to the New York State minimum hourly wage for non-exempt employees and increases in the minimum salary for exempt administrative and executive employees take effect on December 31, 2019. The required minimum rate and salary depends on the employee's location and number of employees. Here's what New York employers need to know.
Non-Exempt Minimum Hourly Wage Rate
The New York State minimum hourly wage rate will increase as follows:
Minimum Salary for Exempt Administrative and Executive Employees
The minimum weekly and annual salary that exempt administrative and executive employees in New York State must receive in order to be exempt from overtime will also increase effective December 31, 2019, as follows:
Minimum Salary for Exempt Professional Employees
New York State does not mandate a minimum salary that professional employees must receive in order to remain exempt from overtime, and for such employees New York State employers must comply with the standards of the federal Fair Labor Standards Act, which required a minimum exempt salary of $455.00/week.
New York State employers should take note that the U.S. Department of Labor has published its final rule raising the federal salary threshold for all executive, administrative and professional exemptions to $684.00/week ($35,568.00 annually). This amount allows employers to use nondiscretionary bonuses and incentive payments to satisfy up to 10% of this threshold. The new salary threshold will take effect on January 1, 2020.
New York State employers of exempt "professional" employees will want to review all such workers' salaries and craft a plan for either providing a salary increase or converting workers to non-exempt status (including tracking hours and paying overtime).
Note on 2020 Changes in New York Paid Family Leave
Next year will also see some new changes in New York Paid Family Leave (NYPFL). This will include an increase in employee benefits under the NYPFL to 60% of their average weekly wage with a cap of $840.70 per week. A new employee contribution rate of 0.27% of an employee's gross wages (with a maximum annual contribution of $196.72) will also be introduced.
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