NEW YORK WHITE COLLAR EXEMPTION THRESHOLD WILL INCREASE (AGAIN) – ARE YOU READY?
New York employers take note! While the original federal white collar exemption threshold increase is dead in the water, and a new one may be far off, New York has its own set of scheduled increases which aren’t going away. As you may recall, for “executive” and “administrative” workers who are exempt from overtime, they must perform certain duties and they must receive a salary at a minimum threshold to be exempt from overtime. The first round of increases to these salary thresholds went into effect last December, with another set on the way in just over a month. In some parts of the state, these increases will continue annually until 2021. In others, they will increase drastically in just the next year or two!
Currently, the salary threshold for executive and administrative employees at large employers in New York City is $825.00. “Large” is defined as 11 or more employees. The threshold at small New York City employers is $787.50. On Long Island and in Westchester County, the threshold is $750.00. In the rest of New York State, the threshold is $727.50.
These amounts increased on December 31, 2016, and are all set to rise again this coming December 31. The pace will vary depending on the size and location of the employer. The threshold for large employers in New York City will be $975 per week – that’s more than the federal increase would have been! Small employers in New York City will rise to $900 per week. Long Island and Westchester will increase to $825 per week, and the rest of New York State will be at $780 per week.
The threshold will then continue increasing, in some cases dramatically! The threshold for large employers in New York City will reach $1,125 by December 31, 2018. Small New York City employers will reach this same threshold one year later. Employers in Long Island and Westchester will reach this level by the end of 2021. Perhaps in a nod to the lower cost of living in upstate New York, the rest of the state will not reach this threshold. It will cap out at $937.50 by the end of 2020.
New York has been aggressive in strengthening labor and employment legislation, rules, and regulations possibly in response to the regulatory rollback at the federal level. Fair workweek laws and the new Paid Family Leave statute are two more examples of New York’s active stance in leading the country on these issues. New York employers should brace themselves for this continued flurry of labor and employment laws. We will provide updates of further developments as they occur.
Brody and Associates regularly advises management on complying with state and federal employment laws including wage and hour laws. If we can be of assistance in this area, please contact us at email@example.com or 203.454.0560.