CLIENT UPDATE

Putney, Twombly, Hall & Hirson LLP
521 Fifth Avenue
New York, NY 10175
Tel: (212) 682-0020

 

December 29, 2016

New York Department of Labor Formally Adopts New Wage Orders to Increase the State Minimum Wage and the Overtime Salary Threshold for Executive and Administrative Exempt Employees

On December 28, 2016, the New York State Department of Labor (“NYSDOL”) formally adopted the proposed wage orders originally set forth on October 19, 2016. The new wage orders will increase the State minimum wage and the salary threshold for exempt executive and administrative employees effective December 31, 2016.

Increases to Minimum Wage

The new wage orders increase the state minimum wage on December 31 of each year according to the following chart:



Location

12/31/16

12/31/17

12/31/18

12/31/19

12/31/20

2021*

NYC - Large Employers
(11 or more)

$11.00

$13.00

$15.00

-

-

-

NYC - Small Employers
(10 or less)

$10.50

$12.00

$13.50

$15.00

-

-

Nassau, Suffolk
& Westchester

$10.00

$11.00

$12.00

$13.00

$14.00

$15.00

Remainder of
New York State

$9.70

$10.40

$11.10

$11.80

$12.50

*

* Annual increases for the remainder of the state will continue until the rate reaches $15 minimum wage (and $10 tipped wage). Starting 2021, the annual increases will be published by the Commissioner of Labor on or before October 1.

New York employees are required to post notice of the new minimum wages in the workplace. A copy of this required posting is available at: https://labor.ny.gov/formsdocs/wp/LS207.pdf.

Increases to Salary Threshold
The new wage orders increase New York’s minimum salary requirement for exempt executive and administrative employees according to the following chart:



Location

12/31/16

12/31/17

12/31/18

NYC - Large Employers
(11 or more)

$825/week
($42,900 annually)

$975/week
($50,700 annually)

$1,125/week
($58,500 annually)

NYC - Small Employers
(10 or less)

$787.50/week ($40,950 annually)

$900/week
($46,800 annually)

$1,012.50/week ($52,650 annually)

Nassau, Suffolk & Westchester

$750/week
($39,000 annually)

$825/week
($42,900 annually)

$900/week
($46,800 annually)

Remainder of New York State

$727.50/week ($37,830 annually)

$780/week
($40,560 annually)

$832/week
($43,264 annually)

Other Provisions

The wage orders also separately address issues for employees in the hospitality industry (including fast food workers and tipped employees), building service industry, apparel industry, and farming.

The NYSDOL’s website provides additional guidance, as well as answers to “Frequently Asked Questions.” See the NYSDOL website at:
https://labor.ny.gov/workerprotection/laborstandards/workprot/minwage.shtm for additional information.

Takeaway for Employers

As discussed in our April 5, 2016 Client Update at http://putneylaw.com/cu_040516.html, effective December 31, 2016 (and thereafter) New York employers should be sure to comply with the increase in the minimum wage rates and the minimal salary threshold required for exempt executive and administrative employees.

* * *

If you have any questions regarding New York’s minimum wage law, the changes to the salary thresholds for certain exempt employees, or other wage and hour issues, please do not hesitate to contact us.