BETHLEHEM – Minimum wage increases effective January 1, 2024. In NYC, Long Island, and Westchester, minimum wage goes from $15.00 per hour to $16.00; the remainder of the state the minimum wage goes from $14.20 to $15.00 per hour.
Also, the minimum salary level for employees considered exempt under the Executive and Administrative exemption is increasing.
To be considered an employee exempt from the overtime provisions of New York State Labor Law, generally employees must pass three tests:
• Their duties – as defined by the law – must be Executive and Administrative in nature.
• They must be paid as an exempt employee – that is, their pay generally may not be changed week to week based on the quantity and quality of work.
• They must be paid a minimum weekly salary.
While the Federal government has a minimum salary level to be considered exempt, New York State has its own minimum salary level that is in excess of the federal minimum. The Federal minimum salary level is currently $684 per week – with a proposed change to $1,059 per week).
The proposed NYS minimum wage and minimum weekly salary levels for Executive and Administrative exemption will be a minimum of $1,125 weekly, ($58,500 annually), outside of Long Island, Westchester, and NYC.
It’s important to be sure that you have correctly classified employees as exempt or non-exempt from overtime provisions of state and federal labor law. Misclassification can result in significant fines and penalties.
This story was featured on page 5 of the December 27, 2023 print edition of the Spotlight.