VIEWPOINT: New York’s salary threshold for executive and administrative exemptions has increased

On Dec. 28, the New York State Department of Labor published its final rule increasing the salary threshold applicable to exempt executive and administrative employees in New York State.

While the ultimate fate of the U.S. Department of Labor’s regulations on the matter remains unclear, the salary threshold applicable to exempt executive and administrative employees in this state increased effective Dec. 31.

In 2016, New York’s Labor Law imposed a salary threshold for executive and administrative employees (New  York law does not set a salary threshold for professional employees and thus the federal salary of $455 applies) of $675 per week, which is 1.875 times the weekly wage that would be earned at the minimum wage of $9 per hour. With the state’s minimum wage set to gradually increase in coming years (at different rates depending on geography), the New York State Department of Labor has implemented corresponding increases in the applicable salary threshold. The first of these increases took effect on Dec. 31.

Specifically, the increases to New York’s salary threshold for executive and administrative employees are as follows:

Employers outside of New York City, Nassau, Suffolk, and Westchester counties

• 727.50 per week on and after 12/31/16;

• 780 per week on and after 12/31/17;

• 832.50 per week on and after 12/31/18;

• 885 per week on and after 12/31/19;

• 937.50 per week on and after 12/31/20

Employers in New York City

“Large” employers (11 or more employees)

• 825 per week on and after 12/31/16;

• 975 per week on and after 12/31/17;

• 1,125 per week on and after 12/31/18

“Small” employers (10 or fewer employees)

• 787.50 per week on and after 12/31/16;

• 900 per week on and after 12/31/17;

• 1,012.50 per week on and after 12/31/18;

• 1,125 per week on and after 12/31/19

Employers in Nassau, Suffolk, and Westchester Counties 

• 750 per week on and after 12/31/16;

• 825 per week on and after 12/31/17;

• 900 per week on and after 12/31/18;

• 975 per week on and after 12/31/19;

• 1,050 per week on and after 12/31/20

• 1,125 per week on and after 12/31/21

What does this mean? It means that if an employer has any exempt executive or administrative employees who are currently paid less than the applicable salary threshold, they must increase their salary to at or above that threshold or reclassify them as nonexempt. They should also be prepared to implement additional pay increases in future years.         

John M. Bagyi is a member (partner) in the Albany office of the Syracuse–based law firm Bond, Schoeneck & King PLLC. Bagyi counsels and represents employers on labor and employment issues. Contact him at jbagyi@bsk.com. This viewpoint is drawn from Bond, Schoeneck & King’s New York Labor & Employment Law Report.