Insights

New York has recently increased the required salary basis threshold for executive and administrative employees to be classified as exempt from minimum wage and overtime purposes. To remain exempt, in addition to meeting the duties test for their applicable exempt category, their base salaries must meet the applicable new salary basis threshold by the end of this year:

• Employers in New York City
  • Large employers (11 or more employees)
    • $1,125.00 per week ($58,500 annually) on and after 12/31/18
  • Small employers (10 or fewer employees)
    • $1,012.50 per week ($52,650 annually) on and after 12/31/18
    • $1,125.00 per week ($58,500 annually) on and after 12/31/19

• Employers in Nassau, Suffolk, and Westchester Counties
  • $900.00 per week ($46,800 annually) on and after 12/31/18
  • $975.00 per week ($50,700 annually) on and after 12/31/19
  • $1,050.00 per week ($54,600 annually) on and after 12/31/20
  • $1,125.00 per week ($58,500 annually) on and after 12/31/21

• Employers Outside of New York City and Nassau, Suffolk, and Westchester Counties
  • $832.00 per week ($43,264  annually) on and after 12/31/18
  • $885.00 per week ($46,020 annually) on and after 12/31/19
  • $937.50 per week ($48,750 annually) on and after 12/31/20

By December 31,2018 New York Employers Should:

* Take this opportunity to review all positions and make adjustments as necessary.

* Ensure that salaries for exempt positions will meet the new thresholds as of 01/01/2019.

* Reclassify exempt employees to nonexempt if their duties or base salary does not qualify them for exempt status.

* Ensure that employees who are reclassified to non-exempt understand the importance of properly tracking their work time.

Morningstar Law Group is available to help you adjust to these changes.  Please contact Amie Flowers Carmack for assistance.