As a reminder, effective Dec. 31, 2022, the minimum wage for all industries in upstate New York will increase from $13.20 to $14.20 per hour. The minimum wage for employees working in New York City, Nassau, Suffolk and Westchester counties remains unchanged at $15.00 per hour. An increase to the salary threshold for employees who are classified as exempt under New York’s executive and administrative exemptions will also increase from $990 to $1064.25 per week (inclusive of board, lodging and other allowances and facilities) in upstate New York effective Dec. 31, 2022. Historically, the exempt salary threshold has been 75 times the minimum wage rate. There is no proposed increase to the salary threshold for exempt executive and administrative employees working in New York City, Nassau, Suffolk and Westchester counties, whose threshold is currently at $1,125 per week. As a reminder, New York State does not establish a minimum salary threshold to qualify for the professional exemption. Thus, the federal threshold of $684.00 per week remains applicable for the professional exemption across New York State, and into 2023.
Employers with exempt employees under the administrative or professional exemption, whose salaries will not satisfy these minimum salary thresholds after December 30th are reminded that, to preserve the overtime exemption for these employees, they will need to increase the salary as of December 31, 2023.
If you have any questions about these changes, please do not hesitate to reach out.