As a reminder, the New York State Department of Labor adopted proposed regulations that change the minimum wage rates and salary thresholds for certain “exempt” employees in New York State. A summary of the changes is below.
Minimum Wage Rates
The minimum wage increased on January 1, 2024 to $16.00 per hour in New York City, Westchester, and Long Island and to $15.00 per hour in all other counties in New York State. In addition, the legislation mandates minimum wage increases for 2025 and 2026 as noted below.
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New York City, Long Island and Westchester County
January 1, 2024: $16.00/hour
January 1, 2025: $16.50/hour
January 1, 2026: $17.00/hour
All Other New York State Counties
January 1, 2024: $15.00/hour
January 1, 2025: $15.50/hour
January 1, 2026: $16.00/hour
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Although the legislation has not specifically identified increases to the minimum wage in 2027 and beyond, the legislation authorizes the Commissioner of Labor to tie the minimum wage to data about inflation collected by the Federal Bureau of Labor Statistics commencing in 2027.
Separately, the New York State Department of Labor published proposed regulations that will amend existing industry-specific wage orders to reflect the increases to the minimum wage rates.
The proposed regulations contain increases to meal and lodging allowances, uniform maintenance allowances and tip credits, among other changes.
Salary Threshold Increases for “Executive” and “Administrative” Exemptions
The regulations also amend the salary thresholds necessary to be considered an exempt “executive” or “administrative” employee under New York law, in addition to meeting the duties required of the exemptions. The increases to the salary thresholds for “executive” or “administrative” employees are noted below.
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New York City, Long Island and Westchester County
January 1, 2024: $1,200.00/week ($62,400.00/year)
January 1, 2025: $1,237.50/week ($64,350.00/year)
January 1, 2026: $1,275.00/week ($66,300.00/year)
All Other New York State Counties
January 1, 2024: $1,124.20/week ($58,458.40/year)
January 1, 2025: $1,161.65/week ($60,405.80/year)
January 1, 2026: $1,199.10/week ($62,353.20/year)
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Though the salary thresholds for “executive” and “administrative” employees increased, the threshold for “professional” employees did not. New York State does not have a salary threshold for “professional” employees, but federal law does. Under federal law, “professional” employees must be paid on a salary basis at least $684 per week.
We recommend that employers review their current pay rates to ensure compliance with the minimum wage rates and salary thresholds. Please contact your attorney at Clifton Budd & DeMaria, LLP if you have any questions about these changes and their impact on your organization.