New York State Department of Labor Updates to Minimum Weekly Salary Threshold, Minimum Wage, and Hour Tip Credit
Effective January 1, 2024.
Minimum Weekly Salary Threshold Increases:
On Dec. 27, 2023, the New York State Department of Labor (NYSDOL) published a Notice of Adoption of its proposed regulations in the State Register, which means the minimum weekly salary to qualify for the executive and administrative exemptions will officially increase effective Jan. 1, 2024. The NYSDOL did not make any changes to its proposed regulations, so the following increases will occur:
For New York City, Nassau, Suffolk, and Westchester counties:
- 2024 – $1,200.00/week ($62,400.00 per year)
- 2025 – $1,237.50/week ($64,350.00 per year)
- 2026 – $1,275.00/week ($66,300.00 per year)
For the rest of New York:
- 2024 – $1,124.20/week ($58,458.40 per year)
- 2025 – $1,161.65/week ($60,405.80 per year)
- 2026 – $1,199.10/week ($62,353.20 per year)
There is no minimum weekly salary under New York law to qualify for the professional exemption. However, with a few exceptions (such as for teachers, doctors, and lawyers), employers still must comply with the federal minimum weekly salary in order to classify employees as exempt under the professional exemption. The federal minimum weekly salary is currently $684, but the U.S. Department of Labor has issued proposed regulations to increase that amount.
As a reminder, the classification of exempt or non-exempt is particularly important for determining which employees are (1) exempt from the overtime laws, meaning that such employees are not eligible to receive overtime pay, and (2) exempt from certain wage payment laws under New York Labor Law Article 6.
Hourly Tip Credit Increases:
The NYSDOL’s final regulations also include the following increases to the hourly tip credits that employers in the hospitality industry may use for the compensation of food service workers and service employees effective Jan. 1, 2024:
- Food service workers – $5.35 tip credit/$10.65 minimum wage in downstate New York and $5.00 tip credit/$10.00 minimum wage in upstate New York; and
- Service employees – $2.65 tip credit/$13.35 minimum wage in downstate New York and $2.50 tip credit/$12.50 minimum wage in upstate New York.
The NYSDOL’s final regulations also provide for increases to the hourly tip credits in the hospitality industry when the minimum wage increases in 2025 and 2026. In all regions of New York, the tip credit for food service workers will increase by $0.15 per hour on Jan. 1, 2025, and Jan. 1, 2026, and the tip credit for service employees will increase by $0.10 per hour on Jan. 1, 2025, and Jan. 1, 2026.
New York Minimum Wage Increases Effective January 1, 2024:
Also, as a reminder for employers, New York’s minimum wage increased January 1, 2024 and will continue to increase over the next couple years to the following rates:
For New York City, Nassau, Suffolk, and Westchester counties
- 2024 – $16/hr
- 2025 – $16.50/hr
- 2026 – $17/hr
For the rest of New York:
- 2024 – $15/hr
- 2025 – $15.50/hr
- 2026 – $16/hr
Notably, New York has a separate minimum wage for home care aides. Effective January 1, 2024, the minimum wage for home care aides increased to $18.55 an hour in New York City, Nassau, Suffolk, and Westchester counties, and $17.55 for the remainder of the state.
Employers should also make sure they have the most up-to-date wage notices posted at their workplace or job site.
Related Resources:
NYS Minimum Wage Proposed Regulatory Text October 2023
Minimum Wage | Department of Labor (ny.gov)
FLSA Compliance Assistance Toolkit
For support on this or other HR topics, please reach out to the OneGroup HR Consulting team at HRConsulting@OneGroup.com.
Sources: bsk.com, natlawreview.com, dol.ny.gov
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Published Date: January 2024