Voice of Business Blog

*Updated - 11/15/24 Federal Court Strikes Down Rule Raising Exempt Salary Threshold 

New York State employers have been busy preparing for the next round of state and federal compensation-related changes. The next NYS minimum wage increase is effective January 1, 2025, and increases to $16.50 per hour in NYC, Long Island, and Westchester County and $15.50 per hour for employers in the rest of the state. With that change will come a new poster as well. Below is a chart of scheduled increases across NYS for this year and the next several years.

Effective Date          NYC, Long Island, Westchester County       Rest of New York State
January 1, 2025                      $16.50/hour                                                $15.50/hour
January 1, 2026                      $17.00/hour                                                $16.00/hour
January 1, 2027                      $17.00 + annual increase                           $16.00 + annual increase

In addition to the minimum wage increase, the NYS salary thresholds for the executive and administrative overtime exemptions also increase January 1, 2025 and again in 2026 as noted below.

Exempt salary thresholds for NYC, Long Island, and Westchester County:
- $1,237.50 per week ($64,350 per year) on January 1, 2025
- $1,275 per week ($66,300 per year) on January 1, 2026

Exempt salary thresholds for the rest of New York State:
- $1,161.65 per week ($60,405.80 per year) on January 1, 2025
- $1,199.10 per week ($62,353.20 per year) on January 1, 2026

While the NYS exempt salary threshold does not apply to the professional exemption, the federal Fair Labor Standards Act (FLSA) exempt salary threshold applies to most jobs that fall under the professional exemption category. Jobs such as teachers, doctors, lawyers, and outside sales employees do not have a salary requirement.

The federal salary threshold had increased July 1, 2024 from $684 per week ($35,568 annualized) to $844 per week ($43,888 annualized) and was scheduled to increase again to $1,128 per week ($58,656 annualized) effective January 1, 2025. However, on November 15th, the U.S. District Court for the Eastern District of Texas struck down the rule so the January increase will not go into effect and the July increase was nullified.  Employers wishing to rescind any increases made in July to comply with this rule should discuss next steps with their employment law attorney. The US DOL has filed a notice of appeal.

Then going back a little for those that missed it, effective March 13, 2024, NYS also increased salary thresholds from $900 to $1,300 per week for employees working in a bona fide executive, administrative, or professional capacity for purposes of wage protections under Article 6 of the NYLL. The purpose of these thresholds, which are different from the above overtime exemption thresholds, is to create an exemption from the Article 6 requirements regarding pay frequency, consent for direct deposit, and the timing of other benefits and wage supplements for executives and administrative and professional employees.

Once we see the new NYS minimum wage poster, we'll notify members. Those ordering 'all in one' posters from a vendor should confirm whether the new version is on the poster you order. It generally takes a few weeks for vendors to update their posters since they receive updates when employers do.

Our poster vendor partner, GovDocs, will be working to update their posters once NYS releases the new versions. A reminder that chamber members receive a 10% discount on labor law and other posters ordered through GovDocs. Here is the site to order from (or check out prices): http://shop.govdocs.com/. Once in your shopping cart, enter promotion code GN-RBA to apply the 10% discount. They also have an electronic poster package to help comply with the NYS electronic poster requirement.

Greater Rochester Chamber members with questions on these or other HR topics can contact the HR Helpline staff for assistance: Jennifer Suppé, Manager, Organizational Culture and HR Services, MSHRD, PHR, SHRM-CP at (585) 256-4608, Cindy Miller, HR Services Partner at (585) 256-4606, or Kathy Richmond, Sr. Director, HR Services at (585) 256-4618. HR Helpline access varies by Membership tier.