NEW YORK STATE DEPARTMENT OF LABOR REVISES MINIMUM WAGE & OVERTIME RULES

New York labor laws were amended on December 31, 2016, and the changes could potentially affect all employers operating in the state.  Review the details of the amendments below to determine how your business will be impacted.

 

Minimum Wage
The minimum wages in New York have been updated according to legislation passed in the spring.  Staggered over the next five years, the minimum wages vary by location and/or company size:

  • New York City “large employers” (11 employees or more) – $11 per hour, increasing $2 per year to reach $15 on December 31, 2018.
  • New York City small businesses (10 employees or less) – $10.50 per hour, increasing $1.50 per year to reach $15 on December 31, 2019.
  • Nassau, Suffolk and Westchester Counties – $10 per hour, increasing $1 per year to reach $15 on December 31, 2021.
  • All other areas of New York – $9.70 per hour, increasing $.70 per year to reach $12.50 by December 31, 2020.

Changes in Exempt Employees
While the federal rules related to overtime and exempt employees are on hold, certain New York state wage orders were proposed in October and became final on December 28, 2016.  These changes involve the minimum salary for exempt executive and administrative employees, which was $675 per week.

The final wage orders substantially increase this amount, depending on region, and stagger additional increases for as many as five years.  Specifically the changes are:

Large Employers in NYC (11 employees or more):

  • $825.00/week, as of December 31, 2016
  • $975.00/week, as of December 31, 2017
  • $1,125.00/week as of December 31, 2018

Small Employers in NYC (10 employees or less):

  • $787.50/week as of December 31, 2016
  • $900.00/week as of December 31, 2017
  • $1,012.50/week as of December 31, 2018
  • $1,125.00/week as of December 31, 2019

Employers in Nassau, Suffolk and Westchester Counties:

  • $750.00/week as of December 31, 2016
  • $825.00/week as of December 31, 2017
  • $900.00/week as of December 31, 2018
  • $975.00/week as of December 31, 2019
  • $1,050.00/week as of December 31, 2020
  • $1,125.00/week as of December 31, 2021

All Other Employers in New York State:

  • $727.50/week as of December 31, 2016
  • $780.00/week as of December 31, 2017
  • $832.00/week as of December 31, 2018
  • $885.00/week as of December 31, 2019
  • $937.50/week as of December 31, 2020

For additional information, refer to the New York Department of Labor’s Minimum Wage page or contact Alan S. Isaacs, CPA, MBA at [email protected].



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