On December 28, 2016, the New York State Department of Labor published its final regulation that affects the ability of certain workers to be classified as exempt from overtime. The salary amount that employers must pay to administrative and executive employees to obtain an exemption from overtime pay will now vary depending on the employer's location within the state and the size of the employer.

Although New York State's salary threshold of $675 per week ($35,100 annually) was greater than the federal rule of $455 ($23,660 annually) per week, most employers had been preparing for a new federal rule that would have raised the exemption from overtime pay for professional, executive and administrative employees to $913 per week ($47,476 annually).  However, a nationwide preliminary injunction was issued in State of Nevada v. U.S. Department of Labor that prevented the federal rule change.  Now, New York employers must abide by the state's salary threshold changes for administrative and executive employees regardless of the uncertainty around the federal rule.  It is important to note that New York State has no minimum salary threshold for those categorized as "professional employees" to be considered exempt from overtime pay.

The increases based on geographic area and employer size are as follows:

Please contact Amy Habib Rittling or Vincent Miranda to discuss how to properly classify employees as exempt under the white collar exemptions or to learn about the status of State of Nevada v. U.S. Department of Labor. 

Click here to read other developments in labor and employment law at the New York Employment Law Update.