On November 22, 2016, a federal district court judge in Texas halted temporarily implementation of proposed changes to federal wage and hour laws (set to take effect December 1, 2016). The proposed changes would have increased the minimum salary for three categories of employees (professional, administrative & executive) exempt under federal law from the right to receive overtime compensation. For more information about this issue, check out http://modicalawfirm.com/changes-to-federal-wage-hour-laws-what-you-need-to-know/
Although proposed changes under federal law are on hold for now, employers in New York have to comply with an increase in the minimum salary for two categories of employees (administrative & executive) exempt under state law from the right to receive overtime compensation.
On December 28, 2016, the New York State Department of Labor (“NYSDOL”) approved an increase to the minimum salary for executive and administrative employees under the state’s wage and hour laws (New York does not impose a minimum salary threshold for exempt professional employees). The current minimum salary for the administrative and executive exemptions under state law is $675/week ($35,100/year) throughout the state.
The minimum salary for executive and administrative exempt employees in Upstate New York is increasing as follows:
- On and after December 31, 2016–$727.50/week ($37,830/year)
- On and after December 31, 2017–$780.00/week ($40,560/year)
- On and after December 31, 2018–$832.00/week ($43,264/year)
- On and after December 31, 2019–$885.00/week ($46,020/year)
- On and after December 31, 2020–$937.50/week ($48,750/year)
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