NY Increases Salary Threshold for Exempt Employees

On December 28th, the New York State DOL finalized regulations that will increase the salary threshold statewide for exempt executive and administrative employees, set to take effect December 31, 2016. The federal FLSA minimum salary threshold was delayed by a Texas court judge. The new thresholds for 2017 across New York State are as follows, effective December 31, 2016:

  • Large Employers (11 or more employees) in NYC: $825.00 per week
  • Small Employers (10 or fewer employees) in NYC: $787.50 per week
  • Employers in Nassau, Suffolk, and Westchester Counties: $750.00 per week
  • Employers Outside of New York City, Nassau, Suffolk, and Westchester Counties: $727.50 per week

What do you need to do now?
Employers must assess who falls under the executive and administrative exemptions and whether the current salaries of their executive and administrative employees are equal to or greater than the new salary threshold. If they fall below the threshold, but meet the duties test, employers must decide whether to raise their salary to meet it or reclassify them to non-exempt. If an employee meets the salary threshold but does not meet the requirements of the duties test, they are considered non-exempt and must be paid overtime.