On December 31, 2017 the New York minimum wage, and the minimum weekly salary threshold for the executive and administrative exemptions under New York State wage and hour law, will each increase as follows:
Minimum Weekly Salary for Executive & Administrative Exemption (regardless of number of hours worked)
|Employers in NYC with 11 or more employees: $13/hour||Employers in NYC with 11 or more employees: $975/week|
|Employers in NYC with 10 or fewer employees: $12/hour||Employer in NYC with 10 or fewer employees: $900/week|
|Employers in Nassau, Suffolk and Westchester Counties: $11/hour||Employers in Nassau, Suffolk and Westchester Counties: $825/week|
|Employers in the Remaining Counties of New York State: $10.40/hour||Employers in the Remaining Counties of New York State: $780/week|
Employers must pay the applicable rate based on where an employee performs work for the employer. If an employee works in two regions, then the employer is permitted to pay the employee at the applicable rate for any hour worked in that particular region.
Please note that under New York law, there is no minimum weekly salary requirement for employees classified as exempt under the professional exemption, though such employees must perform specific duties and attain certain educational requirements. But employers must also comply with the federal Fair Labor Standards Act, which requires that all exempt employees (including those classified as exempt under the professional exemption) receive a minimum weekly salary of $455/week.
What Employers Should Do Now:
- Review payroll records to ensure that all employees are being paid at least the new minimum wage rates in the applicable region. If some employees are not, ensure that those employees receive a pay raise to at least the minimum wage by December 31, 2017.
- Review payroll records to ensure that all employees categorized as exempt because of their inclusion in the administrative exemption or the executive exemption are being paid at least the new minimum weekly salary for the applicable region. If an employee is not, then the employer will need to either increase the employee’s weekly salary or convert the employee to a non-exempt employee by December 31, 2017.
Please contact Pro Bono Partnership at (914) 328-0674 if you have questions or need further assistance.