Overtime Exempt Salary Threshold Increases Take Effect

Despite the nationwide preliminary injunction enjoining the U.S. Department of Labor (“DOL”) from implementing new white collar overtime exemption regulations, the New York State Department of Labor (“NYSDOL”) adopted its own regulations increasing overtime exempt salary thresholds for New York white collar employees. (The Federal District Court in Texas issuing the injunction is scheduled to make a determination on the DOL’s regulations in the first half of 2017.)  White collar employees are defined as those who fill executive, administrative, and professional roles.

The new State regulations took effect on December 31, 2016 and increased overtime exempt salary thresholds based on the size and location of the employer within the State.  The new regulations mark the first time salary thresholds for employees subject to overtime exemptions will vary throughout the state.

According to the regulations, large employers are defined as those with 11 or more employees, while small employers are those with 10 or fewer employees.  Furthermore, the regulations split New York into three regions: (i) New York City; (ii) “Downstate” (Westchester, Nassau, and Suffolk Counties); and (iii) “Upstate” (the remainder of New York State).  Salary thresholds for larger employers located in and around New York City will experience the greatest increase and are slated to surpass the salary threshold proposed under the Fair Labor Standards Act (“FLSA”) by December 31, 2017.  The salary threshold will increase until 2021 for “Downstate” counties, but will cap earlier in New York City at $1,125.00 per week as well as in the remaining “Upstate” counties at $937.50 per week.

Effective Date Overtime Exempt Salary Threshold (salary/week)
NYC: Large
(11 or more)
NYC: Small
(10 for fewer)
Long Island & Westchester Remainder of
NY State
12/31/2016 $825.00 $787.00 $750.00 $727.50
12/31/2017 $975.00 $900.00 $825.00 $780.00
12/31/2018 $1,125.00 $1,012.50 $900.00 $832.00
12/31/2019 $1,125.00 $975.00 $885.00
12/31/2020 $1,050.00 $937.50
12/31/2021 $1,125.00

If you have any questions about employment decisions or application to your business, please contact the Justin Vogel at jvogel@garfunkelwild.com or 516.393.2570.

Categories: Employment Law