It is that time of the year again. 2020 is here and New York State has once again increased the minimum wage and the overtime exempt salary threshold effective December 31, 2019.
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. There are different hourly rates for workers in the fast food industry and those who receive tips. The table below outlines New York’s 2020 minimum wage:
|Geographic Location||2020 Rate|
|NYC (11 or more employees)||$15.00 per hour (no change from 2019)|
|NYC (10 or fewer employees)||$15.00 per hour|
|Nassau, Suffolk, and Westchester counties||$13.00 per hour|
|Remainder of NY||$11.80 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 for 2020. 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 salary thresholds in New York State:
|Geographic Location||2020 Salary Threshold*|
|NYC||$1,125.00 per week ($58,500.00 annually)|
|Nassau, Suffolk, and Westchester counties||$975.00 per week ($50,700.00 annually)|
|Remainder of NY||$885.00 per week ($46,020.00 annually)|
*Numbers provided are pursuant to New York State law and are higher than the federal FLSA thresholds. Employees must meet certain duties tests in addition to their earnings or they will otherwise be eligible for overtime pay.
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
If you have questions about minimum wage, overtime, or wage and hour exemptions, please contact us.