The Fair Labor Standards Act and New York Labor Law include exemptions from overtime and minimum wage requirements for employees holding certain executive and administrative positions. In order to qualify for the executive or administrative exemption, an employee must, among other things, earn at least the minimum threshold salary. Under federal law, the current minimum threshold salary is $455 per week ($23,660 per year). However, the minimum threshold salary is higher under New York law and, as of December 31, 2018, is scheduled to rise even higher.
The new minimum thresholds vary depending on the size of the employer and the employee’s work location, as set forth below.
|New Minimum Threshold Salaries for NY Administrative and Executive Employees|
|New York City
For Employers with 11 or More Employees
|$1,125 per week ($58,500 annually)|
|New York City
For Employers with 1 to 10 Employees
|$1,012.50 per week ($52,650 annually)|
|Nassau, Suffolk, Westchester||$900 per week ($46,800 annually)|
|Other Parts of New York State||$832 per week ($43,264 annually)|
An employer that currently pays its New York “executive” and “administrative” exempt employees less than the new minimum thresholds must be sure to increase their salaries or convert their positions to non-exempt. If an employer raises their salaries, the increase must take effect by no later than the first day of the workweek in which December 31 falls. Likewise, any reclassification of currently-exempt employees must take effect on the first day of the workweek in which December 31 falls. Because each employer defines the start and end days of its workweek, the first day of the workweek in which December 31 falls may vary from one employer to another.