New York Minimum Wage and Exempt Salary Requirements Scheduled to Increase on December 31, 2018

In what could almost be considered a holiday tradition — but not one employers look forward to — the New York State minimum wage rates and minimum salary levels for overtime-exempt employees will increase yet again on December 31, 2018, as detailed below. Employers should review the changes and make the necessary adjustments to  be in compliance as of December 31, 2018.

Minimum Wage Increases

The State’s minimum hourly wage rates will increase on December 31, 2018, as follows:

  • New York City Large Employers (11 or more employees): $13.00 to $15.00 per hour
  • New York City Small Employers (10 or fewer employees): $12.00 to $13.50 per hour
  • Nassau, Suffolk and Westchester Counties: $11.00 to $12.00 per hour
  • Remainder of the State: $10.40 to $11.10 per hour

Minimum Salary Increases

The State’s minimum salary levels for exempt executive and administrative employees will increase on
December 31, 2018, as follows:

  • New York City Large Employers (11 or more employees): $1,125.00 per week ($58,500 annually)
  • New York City Small Employers (10 or fewer employees): $1,012.50 per week ($52,650 annually)
  • Nassau, Suffolk and Westchester Counties: $900.00 per week ($46,800 annually)
  • Remainder of the State: $832.00 per week ($43,264 annually)

There are different hourly rates for workers in the fast food industry and corresponding increases to the allowances for tips, meals, lodging, utilities and uniform maintenance that also take effect on December 31, 2018.

Employers currently paying their hourly employees below the above-mentioned minimum wage rates must start paying these increased minimum wage rates on December 31, 2018. New York State does not have a minimum salary level for “professional” employees, but most of them are still subject to the federal minimum salary of $455 per week ($23,660 annually). In the case of exempt administrative and executive employees, because the overtime exemption applies on a workweek-by-workweek basis, employers must implement the required salary increases on the first day of the workweek in which December 31, 2018 falls, or start paying the affected employees overtime for hours worked over 40 in a workweek. Additionally, the salaries of non-exempt employees will have to be adjusted to ensure that they receive the required minimum wage for all hours worked in the workweek in which December 31, 2018 falls.

Additional Assistance

For questions regarding increases to New York minimum wage and exempt salary requirements, please contact any of the attorneys on our Labor & Employment Practice Team.