Member Alert: NYS Exempt Threshold Increase

While a judge has put a freeze on the Obama administration’s federal exempt threshold increase – at least in the short term – employers need to now direct their attention to New York State.

The New York State Department of Labor is expected to move forward with its plan to increase the exempt threshold under state labor law effective December 31, 2016.  New York’s plan would adjust the salary threshold for executive and administration exemptions only.  This proposal does not apply to the professional exemption.

Under the state’s plan, employers in Upstate New York must comply with an increase to $727.50 per week, up from the current $675 per week.  This change is far more modest than the federal plan currently caught in legal limbo, but is specific by region and does include an automatic accelerator tied to New York rising minimum wage schedule.

While the Labor Department has not made the new thresholds official as of this alert, it is widely expected the department will do so before the end of the year with compliance beginning December 31, 2016.

Below are the statewide requirements through 2021:

statewide requirements

 
You can find full detail on the proposal here starting on page 27.

 

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About Grant Loomis

Vice President, Government Affairs