518-373-4111
UPDATE: The New York Department of Labor published this final rule on December 28, 2016, officially increasing the salary threshold applicable to exempt executive and administrative employees in New York State.
While most employers know about the preliminary injunction on the Department of Labor’s new FLSA overtime rules, which were slated to go into effect on December 1, 2016 and would increase the minimum salary requirement necessary for executive, administrative, and professional employees to be exempt from overtime, employers in New York State need to be on alert as the New York overtime exemption rule may still change.
On October 19, 2016, the New York Department of Labor published a proposed Wage Order that would increase the minimum salary requirements for executive and administrative employees to be exempt from overtime (the wage order does not set a minimum salary requirement for professional employees). A public comment period ended on December 3, 2016, and the state legislature can now enact the rules which could into effect as early as December 31, 2016.
If the new rule takes effect, the following salary levels will become the threshold for the executive and administrative exemptions:
Employers in New York City – Large employers (11 or more employees)
$825.00 per week ($42,900 annually) on and after 12/31/16
Employers in New York City – Small employers (10 or fewer employees)
$787.50 per week ($40,950 annually) on and after 12/31/16
Employers in Nassau, Suffolk, and Westchester Counties
$750.00 per week ($39,000 annually) on and after 12/31/16
Employers Outside of New York City, Nassau, Suffolk, and Westchester Counties
$727.50 per week ($37,830 annually) on and after 12/31/16
These thresholds will increase incrementally each year.
GTM will continue to monitor this issue and provide updates as necessary. Contact us for more information at (518) 373-4111.
