Minimum Wage and Overtime Exemption Threshold Updates for NY and NJ Employers
Employers in New York and New Jersey should take note of upcoming increases to the minimum wage and overtime exemption thresholds, effective January 1, 2025.
Minimum Wage Increases as of January 1, 2025
The hourly minimum wage for employees in New York City, Westchester, and Long Island will increase from $16 to $16.50. For employees in the rest of New York State, the minimum wage will increase from $15 to $15.50.
The hourly minimum wage for employees in New Jersey will increase by $0.36 to $15.49.
Overtime Exemption Salary Threshold Increases as of January 1, 2025
Starting January 1, 2025, employees in New York City, Long Island, and Westchester may qualify for exemption from overtime pay under the executive or administrative exemptions only if their weekly salary is at least $1,237.50, or $62,400 annually. This is up from $1,200 per week, or $64,350 annually, in 2023.
For employees in the rest of New York State, the executive and administrative overtime exemption threshold will increase to $1,161.65 per week or $60,405.80 annually. This is up from $1,124.20 per week, or $58,458.40 annually, in 2023.
New Jersey does not have state specific overtime exemption thresholds but employers there should continue to monitor updates at the federal level.
