Increases to New York Minimum Wage and Salary Thresholds

Increases to New York Minimum Wage and Salary Thresholds

While the Department of Labor may have stayed any national increases to the minimum exemption salary thresholds for the time being, New York employers have not been granted the same reprieve. Effective December 31, 2016, the New York Department of Labor announced incremental increases to its minimum wage laws. With the increased minimum wages, increases were also made to the corresponding salary thresholds applicable to the executive and administrative exemptions to New York’s overtime laws. In New York, the exemption for professional employees has no salary threshold.

As described below, the increases to the minimum wage and minimum salary thresholds differ, and are dependent upon geographical location and, in some circumstances, size and type of employer. It should also be noted that employers are entitled to take tip credits against the minimum wage rates of tipped employees, excluding fast food workers. Those tip credit amounts were also adjusted on December 31, 2016, and can be found in each industry’s specific wage order. All employers with employees subject to New York’s wage and hour laws should carefully review the adjustments to ensure both that their employees are being paid no less than the applicable minimum wage, but also that all executive and administrative exempt employees are earning sufficient wages to meet the exemption threshold.

EMPLOYERS IN NEW YORK CITY

Increased Exemption Salary Thresholds
Small Employers

(10 Employees or Less)

Large Employers

(11 Employees or More)

December 31, 2016 $787.50 $825.00
December 31, 2017 $900.00 $975.00
December 31, 2018 $1,012.50 $1,250.00
December 31, 2019 $1,125.00

 

Minimum Wage Increase
Small Employers

(10 Employees or Less)

Large Employers

(11 Employees or More)

Fast Food Employers
December 31, 2016 $10.50 $11.00 $12.00
December 31, 2017 $12.00 $13.00 $13.50
December 31, 2018 $13.50 $15.00 $15.00
December 31, 2019 $15.00


EMPLOYERS IN NASSAU, SUFFOLK, WESTCHESTER COUNTIES
 

Increased Exemption Salary Thresholds
December 31, 2016 $750.00
December 31, 2017 $825.00
December 31, 2018 $900.00
December 31, 2019 $975.00
December 31, 2020 $1,050300
December 31, 2021 $1,125.00

 

Minimum Wage Increase
Employers of All Sizes Fast Food Employers
December 31, 2016 $10.00 $10.75
December 31, 2017 $11.00 $11.75
December 31, 2018 $12.00 $12.75
December 31, 2019 $13.00 $13.75
December 31, 2020 $14.00 $14.50
December 31, 2021 $15.00 $15.00

 

EMPLOYERS IN ALL OTHER NEW YORK COUNTIES 

Increased Exemption Salary Thresholds
December 31, 2016 $727.50
December 31, 2017 $780.00
December 31, 2018 $832.00
December 31, 2019 $885.00
December 31, 2020 $937.50

 

Minimum Wage Increase
Employers of All Sizes Fast Food Employers
December 31, 2016 $9.70 $10.75
December 31, 2017 $10.40 $11.75
December 31, 2018 $11.10 $12.75
December 31, 2019 $11.80 $13.75
December 31, 2020 $12.50 $14.50
December 31, 2021 The minimum wage is scheduled to continue to rise until it reaches $15.00, on a schedule which will be released at a later date.

 

$15.00

Contributor:  Meagan D. Bainbridge, Attorney at Law  |  Weintraub Tobin