Prepare Now for New York State Minimum Wage and Salary Threshold Updates

Effective December 31, 2020, the minimum wage for non-exempt employees will increase in NewYork. The following reflects the new minimum wage, effective December 31, 2020, for all employees in New York (with the exception of fast food workers):

NYC – Large Employers (of 11 or more)            $15.00           $15.00            
NYC – Small Employers (10 or less)            $15.00            $15.00              
Long Island & Westchester            $13.00           $14.00            $15.00
Remainder of New York State            $11.80           $12.50            TBD

In addition, the minimum salary that can be paid to those classified as exempt pursuant to the administrative and executive exemptions under New York state law will increase. The changes in salary threshold for administrative and executive exemptions depend on the location of the employer and the number of employees. The following reflect the changes in salary thresholds.

Employers in New York City
• $1,125.00 per week on and after 12/31/19

Employers in Nassau, Suffolk, and Westchester Counties
• $1,050.00 per week on and after 12/31/20

Employers Outside of NYC, Nassau, Suffolk, and Westchester Counties
• $937.50 per week on and after 12/31/20

New York employers should review employees’ compensation levels and make any necessary changes by December 31, 2020. Employers should be aware that the updates might result in increasing an employee’s hourly wage or salary or reclassifying exempt employees to non-exempt if they will no longer meet the exemption salary requirement. Should you have any questions about the updates, please contact ALG.