The New York State Department of Labor finalized a wage order on Wednesday, December 28, that increases the weekly salary thresholds for administrative and executive work (the so-called “white collar exemptions”) effective Saturday, December 31, 2016. This wage order will increase the number of workers who qualify for overtime pay.
The new salary thresholds will increase on a yearly basis as follows:
- Employers in New York City
- Large employers (11 or more employees)
- $825.00 per week ($42,900 annually) on and after 12/31/16
- $975.00 per week ($50,700 annually) on and after 12/31/17
- $1,125.00 per week ($58,500 annually) on and after 12/31/18
- Small employers (10 or fewer employees)
- $787.50 per week ($40,950 annually) on and after 12/31/16
- $900.00 per week ($46,800 annually) on and after 12/31/17
- $1,012.50 per week ($52,650 annually) on and after 12/31/18
- $1,125.00 per week ($58,500 annually) on and after 12/31/19
- Employers in Nassau, Suffolk, and Westchester Counties
- $750.00 per week ($39,000 annually) on and after 12/31/16
- $825.00 per week ($42,900 annually) on and after 12/31/17
- $900.00 per week ($46,800 annually) on and after 12/31/18
- $975.00 per week ($50,700 annually) on and after 12/31/19
- $1,050.00 per week ($54,600 annually) on and after 12/31/20
- $1,125.00 per week ($58,500 annually) on and after 12/31/21
- Employers Outside of New York City, Nassau, Suffolk, and Westchester Counties
- $727.50 per week ($37,830 annually) on and after 12/31/16
- $780.00 per week ($40,560 annually) on and after 12/31/17
- $832.00 per week ($43,264 annually) on and after 12/31/18
- $885.00 per week ($46,020 annually) on and after 12/31/19
- $937.50 per week ($48,750 annually) on and after 12/31/20
- Large employers (11 or more employees)
The Department of Labor’s summary of the order can be found here. The final rule can be viewed here (see § 141-3.2(c) on pages 141-14 through 141-16). Employers should seek counsel and take immediate steps to comply with the mandate.
As you know, these changes will have a significant impact on the nonprofit sector, which is why we submitted a public comment on the rule. We continue to reach out to DOL staff and other relevant State officials and will keep you updated on our efforts. We are also monitoring the federal Fair Labor Standards Act rule, which was enjoined (suspended) by a federal district court in Texas on November 22 and remains under court review.
As a reminder, the minimum wage will increase on December 31 as well. For certain New York City human services workers under City contract, the minimum hourly wage will increase to $12.00. The floor will increase to $13.50 on December 31, 2017, and $15.00 on December 31, 2018. This human services wage floor is fully funded.
In addition, the minimum wage will increase across the state. Beginning on the 31st, the minimum hourly wage for each region will be:
- NYC – Large Employers (11 employees or more): $11.00
- NYC – Small Employers (10 employees or fewer): $10.50
- Long Island & Westchester: $10.00
- Remainder of New York State: $9.70
The minimum wage will increase annually as follows.
|General Statewide Minimum Wage Rate Schedule|
|NYC – Large Employers (of 11 or more)||$11.00||$13.00||$15.00|
|NYC – Small Employers (10 or less)||$10.50||$12.00||$13.50||$15.00|
|Long Island & Westchester||$10.00||$11.00||$12.00||$13.00||$14.00||$15.00|
|Remainder of New York State||$9.70||$10.40||$11.10||$11.80||$12.50||**|
Source: NYS Dept. of Labor
* Beginning in 2021, annual increases will be based on percentage increases determined by the Director of the Division of Budget, based on economic indices including the Consumer Price Index.
** Annual increases for regions outside of New York City, Westchester, and Long Island will continue until the rate reaches $15 (or $10 for tipped wages).
HSC continues to press for adjustments to human services contracts to cover the cost of these increases. For more details, visit the New York State Department of Labor website.
-Tracie Robinson, Senior Policy Analyst