Most employers know that the minimum wage in New York is increasing on
December 31, 2018.
- For employers in Long Island and Westchester, the new minimum wage is $12/hour.
- For New York City small employers (less than 11 employees), the minimum
wage is $13.50/hour/ For large employers (11 or more employees) it is $15/hour.
- For the remainder of New York State, the new minimum wage is $11.10/hour.
Less well known is that the minimum salary for "exempt" employees
also is increasing significantly.
- Currently, in order for an employee to be deemed exempt, they must receive
a minimum annual salary of $42,900 in Long Island and Westchester; $46,800
for small New York City employers; and $50,700 for large New York City
- These minimums will increase, respectively, to $46,800, $52,650 and $58,500.
Bonuses, even if non-discretionary, do not count toward the minimum salary.
If these salary requirements are not met, the employee is deemed non-exempt
and overtime must be paid.
- This means that, for example, if a salaried employee for a New York City
business with 11 employees is not paid at least $58,500 annually, the
employee must be paid overtime of 1.5 times his or her regular rate if
they work more 40 hours in a week. If this employee is paid an annual
salary of $52,000, his or her regular hourly rate is $25 an hour and the
overtime rate is $37.50. If the employee works 50 hours in a week, he
or she must be paid an additional $375 that week for ten hours of overtime.
Employers should review their employment practices and policies before
the New Year to ensure compliance and avoid liability.
If you have any questions on this or other employment-related matters,
please contact Mr. Gefen at 516.437.4385, ext. 119, or