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 employers.
- 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 firstname.lastname@example.org.