Minimum Wage Increase & Salary Exemption Threshold Update

Date: January 23, 2017

New York State Minimum Wage to Rise on December 31, 2016
As part of last year’s budget agreement, the state minimum wage is set to rise on December 31, 2016. The wage increase from the current $9.00/hr. depends on the location of the workplace and the size of the workforce.

New York City:
$11.00 / hr. for businesses with more than ten employees
$10.50 / hr. for businesses with ten or fewer employees

The minimum wage is set to increase each year until it hits $15.00 /hr. at the end of 2018 for employers with more than ten employees. The wage will hit $15.00 /hr. at the end of 2019 for employers with ten or fewer employees.

Westchester and Long Island:
$10.00 / hr.

Minimum wage is set to hit $15.00 /hr. by the end of 2021 in Westchester and Long Island.


Rest of the State:
$9.70 /hr.

Minimum wage is set to hit $12.50 /hr. by the end of 2020. 

**New Minimum Wage Posters should be posted by 12/31/16. Posters are available here for Miscellaneous Industries and here for the Hospitality and Fast Food Industry. **

Employers also should be aware that the Department of Labor has not made a final determination on the proposed rule raising minimum salaries for exemption from overtime

In light of the recent injunction on the overtime exemption issued by the federal  government, there is increased uncertainty among small businesses about New York’s proposed salary threshold increase to qualify for exemption from overtime, scheduled to take effect December 31, 2016. Employers should check the State Department of Labor website for updates on the pending regulation.

Last spring, the federal government put forth a salary rate increase threshold to exempt administrative employees from minimum wage, effective December 1, 2016. This proposed threshold would have more than doubled the salary threshold for overtime exempt classification. A federal court in Texas, however, issued a preliminary injunction on November 22 that temporarily bars the salary threshold from being implemented.

Meanwhile, in New York State, the State Department of Labor in October 2016 issued draft regulations that would raise the weekly salary exemption for an administrative employee from the current $675 per week ($35,100 per year) to $825 per week ($42,900 per year). The proposed new rules also would raise allowances for meals, lodging, tips, utilities and uniforms. These proposed increases could reach as much as $1,125 per week over the next few years.

NFIB/NY Opposed the Threshold Increase on Behalf of Small Businesses:
NFIB/NY submitted a letter to the State Department of Labor opposing the proposed salary level threshold. Read the letter

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