2017 ushered in new employment rules for New York employers. Increases to the minimum wage and overtime exemption rules went into effect on December 31, 2016. The following is a summary of the changes to these wage and hour rules.
MINIMUM WAGE
The schedule of minimum wage increases is as follows:
|
Effective Date
|
Workers Employed in New York City by Businesses with 11 or More Employees
|
Workers Employed in New York City by Businesses with 10 or Fewer Employees
|
Workers Employed in Nassau, Suffolk and Westchester Counties
|
Workers in the Remainder of New York State
("Upstate")
|
|
December 31, 2016
|
$11.00 per hour
|
$10.50
|
$10.00
|
$9.70
|
|
December 31, 2017
|
$13.00 per hour
|
$12.00
|
$11.00
|
$10.40
|
|
December 31, 2018
|
$15.00 per hour
|
$13.50
|
$12.00
|
$11.10
|
|
December 31, 2019
|
$15.00 per hour
|
$15.00
|
$13.00
|
$11.80
|
|
December 31, 2020
|
$15.00 per hour
|
$15.00
|
$14.00
|
$12.50
|
|
December 31, 2021
|
$15.00 per hour
|
$15.00
|
$15.00
|
To be determined
|
Download the new minimum wage poster at labor.ny.gov/formsdocs/wp/LS207.pdf.
OVERTIME EXEMPTIONS
Last month we reported that a federal court judge held up changes to the "white color" overtime exemptions under the Fair Labor Standards Act ("FLSA") scheduled to go into effect on December 1, 2016. While the changes to the federal law remain on hold,
New York has enacted its own changes to its overtime exemption rules.
As of December 31, 2016, the New York State Department of Labor ("NYSDOL") has increased the overtime exemption salary thresholds for New York employees. The increases will continue over the course of the next few years. The new thresholds are as follows.
|
New York City: Large Employer (11 or more) |
New York City: Small Employer (10 for fewer) |
Nassau, Suffolk, Westchester Counties |
Other New York counties |
| Effective Date |
Overtime Exempt Salary Threshold (salary/week) |
| 12/31/16 |
$825.00 |
$787.00 |
$750.00 |
$727.50 |
| 12/31/17 |
$975.00 |
$900.00 |
$825.00 |
$780.00 |
| 12/31/18 |
$1,125.00 |
$1,012.50 |
$900.00 |
$832.00 |
| 12/31/19 |
|
$1,125.00 |
$975.00 |
$885.00 |
| 12/31/20 |
|
|
$1,050.00 |
$937.50 |
| 12/31/21 |
|
|
$1,125.00 |
|
To qualify for an overtime exemption, employees must meet certain tests regarding their job duties and be paid on a salary basis at not less than the amount noted in the chart. Job titles do not determine exempt status. In order for an exemption to apply, an employee's specific job duties and salary must meet all the following requirements.
Executive Exemption
To qualify for the executive employee exemption, all of the following tests must be met:
- The employee must be compensated on a salary basis at a rate not less than the threshold amount in the chart;
- The employee's primary duty must be managing the business, or managing a customarily recognized department or subdivision;
- The employee must customarily and regularly direct the work of at least two (2) or more other full-time employees; and
- The employee must have the authority to hire or fire other employees, or the employee's suggestions and recommendations as to the hiring, firing, advancement, promotion or any other change of status of other employees must be given particular weight.
Administrative Exemption
To qualify for the administrative exemption, all of the following tests must be met:
- The employee must be compensated on a salary or fee basis at a rate not less than the threshold amount in the chart;
- The employee's primary duty must be the performance of office or non-manual work directly related to the management or general business operations; and
- The employee's primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.
For more information on the overtime rules, the status of the injunction on the changes to the federal rules or any other employment related matters contact Stevan LaBonte at 516-280-8580.
