New York Minimum Wage and Salary Threshold for Exempt Employees Set to Increase

Seyfarth Synopsis: As they have each year since 2016, the minimum wage and exempt salary threshold will increase for New York employers effective December 31, 2019.

Minimum Wage (2020)

In keeping with the gradual increase in the State’s minimum wage levels, the new tiered minimum wage rates across the State, effective December 31, 2019, are listed below. The increases depend on employer size and location. The minimum wage rate for large New York City employers, which hit $15 per hour last year, remains the same.

Size/Location of Employer	Minimum Wage as of December 31, 2019
New York City, 11 or more employees	$15.00
New York City, 10 or fewer employees	$15.00
Long Island and Westchester employers, regardless of size of employer	$13.00
Remainder of state, regardless of size of employer	$11.80

 Along with the increase to the minimum wage, the amounts that employers can deduct from employees’ wages for items such as tip credits, uniform allowances and meals are also set to change on December 31. The Department of Labor on its website has summarized the revisions applicable to hospitality employers, employers in “miscellaneous industries,” and employers in the “building service industry.” Employers should consult these summaries to determine how much they can deduct for a uniform allowance and claim for meal, lodging and tip credits.

Salary Threshold for Exempt Employees (2020)

The tiered salary thresholds across the state are also rising in-line with the minimum wage. The new thresholds will be effective December 31, 2019 and will depend on employer size and location. They are as follows:

 

Size/Location of Employer	Salary Threshold as of December 31, 2019
New York City, 11 or more employees	$1,125.00 per week ($58,500.00 per year)
New York City, 10 or fewer employees	$1,125.00 per week ($58,500.00 per year)
Nassau, Suffolk, and Westchester counties, regardless of size of employer	$975.00 per week ($50,700 per year)
Remainder of State, regardless of size of employer	$885.00 per week ($46,020 per year)

 FLSA Salary Threshold Increase Effective January 1, 2020

Employers with operations outside of New York should also remember that, effective January 1, 2020, the standard salary level threshold for exempt employees under the FLSA will increase from $455 to $684 per week. The new salary level is equivalent to $35,568 per year for a full-time worker. Additionally, the total annual compensation level required for the Highly Compensated exemption will increase from $100,000 to $107,432 per year. 

 Conclusion

Employers in New York should be sure to be on top of the upcoming changes to the minimum wage and salary thresholds for exempt employees as 2020 will be here before you know it!