USA - New York increase in Exempt Employee Salary Threshold

 

New York has recently increased the required salary basis threshold for executive and administrative employees to be classified as exempt from minimum wage and overtime purposes.  To remain exempt, in addition to meeting the duties test for their applicable exempt category, their base salaries must meet the applicable new salary basis threshold by the end of this year:

 

Employers in New York City

Large employers (11 or more employees)

• $1,125.00 per week ($58,500 annually) on and after 31 Dec 2018

 

Small employers (10 or fewer employees)

• $1,012.50 per week ($52,650 annually) on and after 31 Dec 2018
• $1,125.00 per week ($58,500 annually) on and after 31 Dec 2019

 

Employers in Nassau, Suffolk and Westchester Counties

• $900.00 per week ($46,800 annually) on and after 31 Dec 2018
• $975.00 per week ($50,700 annually) on and after 31 Dec 2019
• $1,050.00 per week ($54,600 annually) on and after 31 Dec 2020
• $1,125.00 per week ($58,500 annually) on and after 31 Dec 2021

 

Employers outside New York City and Nassau, Suffolk and Westchester Counties

• $832.00 per week ($43,264 annually) on and after 31 Dec 2018
• $885.00 per week ($46,020 annually) on and after 31 Dec 2019
• $937.50 per week ($48,750 annually) on and after 31 Dec 2020

 

By 31 December 2018, New York Employers should:

• Take this opportunity to review all positions and make adjustments as necessary.
• Ensure that salaries for exempt positions will meet the new thresholds as of 1 Jan 2019.
• Reclassify exempt employees to nonexempt if their duties or base salary does not qualify them for exempt status.
• Ensure that employees who are reclassified to non-exempt understand the importance of properly tracking their work time.

 

Morningstar Law Group is available to help you adjust to these changes.  

For further information, please contact:

Amie Flowers Carmack, Partner

Morningstar Law Group, Raleigh, NC

e: acarmack@morningstarlawgroup.com  

t: +1 919 590 0394

 

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