It is exceptionally important to maintain compliance with overtime laws in New York, and with that in mind, businesses should ensure they have adjusted payroll and wages to reflect the changes to New York State’s exempt salary threshold for 2024, for executive and administrative classifications.
With New York State Labor Laws maintaining a higher salary threshold than what is required in the federal Fair Labor Standards Act (FLSA), maintaining compliance is crucial. It is also critical to understand how to properly classify employees.
UPDATE 12.27.23: The New York State Department of Labor finalized the minimum salary threshold for 2024.
Employers should adjust their minimum exempt salary to $1,124.20 weekly ($58,458.40 annually) to reflect the increase that took effect January 1, 2024 in areas outside of New York City, Westchester County, and Long Island.
While in 2023 there was no salary threshold increase for businesses under local legislation, for 2024 businesses located within New York City, Westchester County, and Long Island, the minimum salary threshold did increase to $1,200 weekly ($62,400 annually).
In 2023, the exempt salary threshold was $1,064.25 weekly ($55,341 annually).
In 2023, there was no increase for NYC, Long Island, and Westchester which have their own minimum salary threshold.
The NYDOL has scheduled increases for the exempt salary threshold for the next three years starting in 2024.
In 2025, the New York Exempt Salary Threshold will increase to $60,405.80 annually ($1,161.65 weekly) in areas outside of New York City, Nassau, Suffolk, and Westchester counties.
Within New York City, Nassau, Suffolk, and Westchester counties, the minimum salary threshold will increase to $64,350 annually (approximately $1,237.50 weekly).
In 2026, the New York Exempt Salary Threshold will increase to $62,353.20 annually ($1,199.10 weekly) in areas outside of New York City, Nassau, Suffolk, and Westchester counties.
Within New York City, Nassau, Suffolk, and Westchester counties, the minimum salary threshold will increase to $66,300 annually (approximately $1,275 weekly).
In order to continue to maintain compliance with New York Overtime Law, any employers that have employees who met the salary threshold in 2023 but no longer meet the requirements in 2024, have two options:
Managers who are having trouble managing the new salary threshold, and ensuring the proper employees get paid for overtime should consider reaching out to a New York State Payroll and HR Company.
If you'd like to learn more about the New York State and New York City minimum wage for 2024, you can click here.
To learn more about how EBC is helping businesses with compliance management through payroll software solutions or our latest HR Service Offerings, contact us today.