On December 27, 2023, New York issued a notice that the New York Department of Labor (DOL) adopted the regulations that will increase the salary thresholds for minimum wage and overtime exemptions for “executive” or “administrative” employees under the New York Labor Law. By way of background, both federal law (Fair Labor Standards Act or FLSA) and state law (New York Minimum Wage Act and applicable regulations) generally require the payment of overtime wages for work performed after 40 hours per week. The FLSA and the State Minimum Wage Act exempt employees who work in a bona fide administrative, executive, or professional capacity from the minimum wage and overtime laws. To qualify for exempt executive, administrative, or professional status, the employee must be paid on a salary basis and meet the salary level threshold. This requirement is in addition to meeting the duties prong, which is different for each exemption status.
Effective January 1, 2024, the salary threshold for exempt executive and administrative* employees in NYS will increase as follows:
Year | New York City, Westchester, and Long Island | The Rest of New York State |
| 2024 | $1,200.00/week ($62,400.00/year) | $1,124.20/week ($58,458.40/year) |
| 2025 | $1,237.50/week ($64,350.00/year) | $1,161.65/week ($60,405.80/year) |
| 2026 | $1,275.00/week ($66,300.00/year) | $1,199.10/week ($62,353.20/year) |
*We note that New York has no salary threshold for exempt professional employees. The federal salary threshold for professional employees remains unchanged, so far. Some professional employees (in education, law and medicine) have no salary basis requirement.
Employers should review their current payroll practices and policies and make any necessary updates to account for these changes. Employers should consider increasing employee compensation to meet the new threshold or ensure that employees below the threshold are paid according to overtime and minimum wage requirements.
If you have questions or concerns about these new regulations affecting salary thresholds for exempt employees, please contact Chaim Book at CBook@booklawllp.com, Sheryl Galler at SGaller@booklawllp.com, or Nadav Zamir at NZamir@booklawllp.com.
Disclaimer: The information provided in this blog post is for general knowledge purposes only and should not be considered legal advice. For specific guidance tailored to your situation, it is advisable to consult with a qualified employment law professional.
