Another year has come and gone. As we usher in 2019, business owners should know that New York State has also ushered in changes to the minimum wage and the overtime exempt salary threshold effective December 31, 2018.
Minimum Wage Increase
Employers generally must pay nonexempt employees at least the minimum wage. Minimum wage throughout New York may vary based on the employer’s size, geographic location, or industry. With some exceptions for the hospitality industry (please contact us for any questions you may have), the table below outlines New York’s 2019 minimum wage:
|Geographic Location||2019 Rate||2019 Tipped Rate|
|NYC (11 or more employees)||$15.00 per hour||$10.00 per hour|
|NYC (10 or fewer employees)||$13.50 per hour||$10.00 per hour|
|Nassau, Suffolk, and Westchester counties||$12.00 per hour||$8.65 per hour|
|Remainder of NY||$11.10 per hour||$7.85 per hour|
The minimum wage is expected to increase annually until it reaches $15.00 per hour by the end of 2021 for all of New York State.
Increased Salary Threshold for Overtime Exemption
Both federal law (Fair Labor Standards Act (FLSA)) and state law (New York Minimum Wage Act and applicable regulations) generally require the payment of overtime wages for work performed after 40 hours per week. However, there are exemptions for certain salaried employees from federal and state minimum wage and overtime pay requirements. In addition to New York’s minimum wage increase, the minimum salary that must be paid to workers classified as exempt under New York State Labor Law’s administrative and executive exemptions increased as of December 31, 2018. As with minimum wage, the salary thresholds vary depending on the employer’s location and the number of employees. The table below outlines the revised thresholds in New York State:
|Geographic Location||2019 Salary Threshold*|
|NYC (11 or more employees)||$1,125.00 per week ($58,500.00 annually)|
|NYC (10 or fewer employees)||$1,012.50 per week ($52,650.00 annually)|
|Nassau, Suffolk, and Westchester counties||$900.00 per week ($46,800.00 annually)|
|Remainder of NY||$832.00 per week ($43,264.00 annually)|
*Numbers provided are pursuant to New York State law and are higher than the federal FLSA thresholds.
Employers should review their wage and hour practices annually to ensure that their employees are properly classified as exempt or non-exempt and that current minimum wage and overtime rates are being paid to qualified workers. Take advantage of the new year to give your practices a fresh look.
If you have questions about minimum wage, overtime, or wage and hour exemptions, please contact us.