New York Exemption Threshold Set to Increase on Dec. 31

On December 31, 2016, at 12:01am (i.e. not January 1, 2017), the New York State Department of Labor will implement regulations increasing the salary threshold exempting employees from overtime-pay requirements for most private employers.

Although implementation of the federal regulations has been delayed, as noted in this Arent Fox alert, New York State is continuing with its regulation. This means that, regardless of the outcome at the federal level, more New York State employees will become eligible for overtime pay throughout the state.

The NYS DOL salary threshold will be raised to different levels in different areas of the state, as explained in the chart below. The State’s goal is to have many more employees become eligible for overtime pay over the next five years. 
 

Location

NYC, 11+ employees

NYC, <11 employees

Nassau, Suffolk, Westchester Counties

Remainder of the State

Eff. Dec. 31, 2016

$825*

$787.50
 

$750
 

$727.50

Eff. Dec. 31, 2017

$975

$900

$825

$780

Eff. Dec. 31, 2018

$1,125

$1,012.50

$900

$832

Eff. Dec. 31, 2019

—

$1,125

$975

$885

Eff. Dec. 31, 2020

—

—

$1,050

$937.50

Eff. Dec. 31, 2021

—

—

$1,125

—

* All numbers are expressed as weekly salaries. To determine the equivalent annual salary, multiply the weekly figure by 52.

On December 23, 2016, the DOL clarified how to treat employees whose employers conduct business throughout the state. In order to maintain exempt status, employees’ salaries will need to change during periods in which they work in higher-threshold jurisdictions. For example, an exempt employee at a large company, making $730/week at his main office in Ulster County, who is sent on a one-week assignment to the employer’s New York City office, will need to receive $825 that week to remain exempt for the time worked in New York City.

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