NYSDOL New Wage Orders, Effective December 31, 2016

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On December 29, 2016, the New York State Department of Labor (“NYSDOL”) adopted its proposed rule increasing overtime exempt salary thresholds for New York employees. The new rule went into effect on December 31, 2016. The NYSDOL made no changes to the version of the proposed rule published on October 19, 2016. Employers in New York should plan to comply with the new overtime salary thresholds as outlined below on January 1, 2017.

 

The New Rule

 

The NYSDOL New Wage Order not only increased the minimum wage but also raised the thresholds for executive and administrative employees under the NYLL. Previously, the minimum salary threshold for the executive and administrative employee exemptions (from overtime pay) was $675.00 per week ($35,100.00 per year). As of December 31, 2016, increases (based on employer size and location) will go into effect that will raise the minimum salary threshold to as high as $825.00 per week ($42,900.00 per year) for employers of 11 or more employees in New York City.

 

What Employers Need to Do

 

Employers throughout New York State must increase their exempt executive and administrative employees' salaries by December 31, 2016 to meet the requirements of the newly adopted Final Rules, or pay overtime to employees earning less than the new threshold. New York State employers will also need to decide whether to increase such salaries each year to match the annual increases required each December 31, 2016, outlined in the chart below.

 

Summary of the New Wage Order 

 

Executive and Administrative Exemptions Salaries, as of December 31, 2016

 

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

 

Minimum Wage, as of December 31, 2016

 

 

 

If you have any questions regarding the NYSDOL New Wage Order and how it effects your business & employees please feel free to call our office 

 

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