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On Sept. 15, 2023, New York amended its Labor Code to increase the salary threshold executive, administrative, and professional (EAP) employees must meet to qualify for the state’s wage payment exemptions. Beginning March 13, 2024, EAP employees who earn less than $1,300 per week will be subject to the same wage payment protections as other nonexempt employees.
Frequency of Payment
Clerical and other workers in New York – including EAP employees – must be paid at least semimonthly, on regular paydays designated in advice by their employers.
Direct Deposit
State law requires employers to obtain advance, written consent before directly paying or depositing employee net wages or salary in a bank or other financial institution. Beginning March 13, 2024, EAP employees are exempt from the advance, written consent request if they make at least $1,300 per week.
Benefits and Wage Supplements
Under state law “benefits or wage supplements” include expense reimbursements, health, welfare and retirement benefits, and vacation, separation, or holiday pay. Employees must receive these benefits within 30 days of when they accrue unless they qualify for an exemption, such as the EAP exemption mentioned above.
Impact on Employers
Employers in New York should review their employee’s classification status and determine which exempt employees will be affected when the salary threshold increases from $900 to $1,300 per week. Employers must be ready to comply with state wage payment requirements for nonexempt employees.
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