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New York: Exempt Salary Threshold Increased

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All Employers with NY Employees December 31, 2016 Contact your OneDigital Representative

Effective December 31, 2016, the New York State Department of Labor (“NYSDOL”) has adopted proposed amendments to the New York minimum wage orders that will increase the salary threshold for executive and administrative employees. Prior to the amendments, the executive/administrative salary exemption threshold was $675 per week ($35,100 annually).

The new exemption thresholds are scaled to employer size, and will gradually increase each year, per the table below:

Effective Date

New York City: Employers of 11 or more employees

New York City: Employers of 10 or fewer employees

Nassau, Suffolk, and Westchester Counties

Employers outside of New York City and Nassau, Suffolk and Westchester Counties

12/31/2016 $825/week, $42,900/year $787.50/week,
$40,950/year
$750/week, $39,000/year $727.50/week, $37,380/year
12/31/2017 $975/week,
$50,700/year
$900/week,
$46,800/year
$825/week, $42,900/year $780/week, $40,560/year
12/31/2018 $1,125/week,
$58,500/year
$1,012.50/week,
$52,650/year
$900/week, $46,800/year $832/week, $43,264/year
12/31/2019 $1,125/week,
$58,500/year
$975/week, $50,700/year $885/week, $46,020/year
12/31/2020 $1,050/week, $54,600/year $937.50/week, $48,750/year
12/31/2021 $1,125/week, $58,500/year

The NYSDOL’s website includes a FAQ addressing some salary exemption threshold questions, but does not clarify how employers should calculate a salary basis for employees who work in multiple locations. Additionally, New York employers should be prepared to review salary levels each year, as the federal overtime exemption rule may apply in locations where the federal salary test is higher than the statewide thresholds.

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