New York State Has Increased Minimum Wage for Executive and Administrative Exempt Positions Effect

Type:  General 

New York State Has Increased Minimum Wage

for Executive and Administrative Exempt Positions

Effective 12/31/16

 

Effective December 31, 2016, New York State has increased the minimum salary levels for exemption thresholds for executive (e.g., Managers, Supervisors, Directors) and administrative employees. The amount of the increase depends on the employer's size and its location.  Please note that the weekly wage will be increasing over the next few years.

 

This is a State-level increase and is not affected by the federal court injunction.   

 

The schedule of minimum salaries for Exectuive and Administrative Exempt positions effective 12/31/2016 is as follows:

 

New York City: Large Employers of 11 or more employees: $825.00 per week

New York City: Small Employers of 10 or fewer employees: $787.00 per week

Nassau, Suffolk, and Westchester Counties: $750.00 per week

Outside of Nassau, Suffolk, and Westchester Counties: $727.50 per week

 

FYI:

New York City has established different minimum wage levels for smaller employers until 12/31/19 when small employers will also need to pay these exempt classifications a minimum of $1,125.00 per week.

 

A "large" employer is defined as "any business that 1) employs one or more employees (including part-time personnel) in New York City and 2) has employed more than 10 employees at any time during the current or prior calendar year and among all worksites". This size is based on the highest total number of employees at any given time during the current or prior calendar year of the employer's worksites.  Therefore, an employer with only one employee in New York City could be considered a large New York City employer for purposes of the minimum wage and salary requirements.   

 

The minimum wage rate applies for any and all employees performing work in that county/city, regardless of where the employer is located. If employees work in two minimum wage regions (e.g., they perform work in New York City and Nassau County), an employer must either pay these employees the highest rate for all hours worked, or pay them for each hour worked in every region at the applicable minimum wage rate for that region. Please note that employers must keep track of employee hours worked, rates paid, and wages earned for hours worked in different regions.

 

Should an employer's workforce drop to below 11 employees at any given time, the employer must wait a full calendar year before becoming subject to the "small" employer rate. For example, a New York City employer that employed more than 15 employees at any time in 2016, but does not employ more than 10 persons throughout 2017, will be considered a small employer in 2018 as long as it continues to employ no more than 10 people.

 

Additionally, employees must be made aware of the pay rate applicable to the work they perform. This may be done by providing a separate Wage Theft Prevention Act notice for each region, job site, job title, and pay rate or they may provide a listing of all rates on a single employee pay notice. 

 

Any questions, please contact Lauren Brenner at 617-614-1271 or lbrenner@telamonins.com.