New York State Minimum Wage and New York State and Federal Overtime-Exempt Salary Levels Scheduled to Increase

As detailed below, the New York State minimum wage rates and minimum salary levels for overtime-exempt employees will increase yet again on December 31, 2019, and the federal minimum salary level for overtime-exempt employees will increase on January 1, 2020. Employers should review the changes and make the necessary adjustments to ensure they are in compliance with the new requirements when they become effective.

New York State Minimum Wage Increases (Non-Fast Food Workers)

The State’s minimum hourly wage rates for non-fast food workers will increase on December 31, 2019, as follows:

  • New York City Small Employers (10 or fewer employees): $13.50 to $15.00 per hour
  • Nassau, Suffolk and Westchester Counties: $12.00 to $13.00 per hour
  • Remainder of the State: $11.10 to $11.80 per hour

The hourly rate for New York City Large Employers (11 or more employees) will remain unchanged at $15.00 per hour.

New York State Minimum Wage Increase (Fast Food Workers)

The State’s minimum hourly wage rate for fast food workers outside of New York City will increase from $12.75 to $13.75 per hour on December 31, 2019. The minimum wage for fast food workers in New York City will remain unchanged at $15 per hour.

New York State Minimum Salary Increases for Overtime-Exempt Employees

The State’s minimum salary levels for overtime-exempt executive and administrative employees will increase on December 31, 2019, as follows:

  • New York City Small Employers (10 or fewer employees): $1,012.50 to $1,125 per week ($58,500 annually)
  • Nassau, Suffolk and Westchester Counties: $900 to $975 per week ($50,700 annually)
  • Remainder of the State: $832 to $885 per week ($46,020 annually)

The minimum salary level for overtime-exempt employees for New York City Large Employers (11 or more employees) will remain unchanged at $1,125 per week ($58,500 annually).

Federal Minimum Salary Increase for Overtime-Exempt Employees

On January 1, 2020, the federal minimum salary level for overtime-exempt executive, administrative and professional employees will increase from $455 to $684 per week ($35,568 annually), and the minimum salary level for overtime-exempt highly compensated employees will increase from $100,000 to $107,432 per year.

Because the minimum salary level for overtime-exempt executive and administrative employees under New York State law is higher than the minimum salary level under federal law, employers must meet the higher New York State salary level if they wish to treat executive and administrative employees as exempt from overtime. New York State does not have a minimum salary level for professional employees, so employers who wish to treat such employees as exempt from overtime will have to comply with the federal minimum salary level where it otherwise applies.

Additional Assistance

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