November 20, 2023
This Legal Alert has been updated as of January 2nd, 2024. View the updated alert here.
Legal Alert: NY Minimum Wage Will Increase on January 1, 2024; Minimum Weekly Salaries for Executive and Administrative Exemptions May Increase As Well
Minimum Wage Increase
On January 1, 2024, the New York minimum wage will increase to:
- $16/hour in New York City and Nassau, Suffolk and Westchester Counties; and
- $15/hour in all other counties in New York State.
As before, employers must pay the applicable rate based on where an employee performs work for the employer. If an employee works in two regions, the employer is permitted to pay the employee at the applicable rate for any hour worked in that particular region.
Proposed Increase to Executive and Administrative Exemptions Minimum Weekly Salary Requirement
Typically, when the minimum wage increases, the minimum weekly salary required for an employee to be classified as exempt under the executive or administrative exemptions also increases. As of the date of this publication, changes to the minimum weekly salary thresholds for the executive and administrative exemptions have been proposed, but have not yet been adopted.
If adopted, the minimum weekly salary thresholds for the executive and administrative exemptions will increase to:
- $1,200/week ($62,400 annually) in New York City and Nassau, Suffolk and Westchester Counties; and
- $1,124.20/week ($58,458.40 annually) in all other counties in New York State.
Pro Bono Partnership will monitor developments and update this legal alert on our website should the minimum weekly salary for the executive and administrative exemptions increase.
Note that under New York law, there is no minimum weekly salary requirement for employees classified as exempt under the professional exemption, though such employees must perform specific duties and attain certain educational requirements in order to meet the qualifications for this exemption. In addition, employers must comply with the federal Fair Labor Standards Act, which requires that all exempt employees (including those classified as exempt under the professional exemption) receive a minimum weekly salary of $684/week.
What Employers Should Do Now:
- Review payroll records to ensure that all employees are paid at least the new minimum wage rates for the applicable region of New York State.
- Review payroll records of all employees categorized as exempt under the administrative or executive exemptions to determine if they would meet the proposed minimum weekly salary thresholds for the applicable region of New York State. If they do not and the proposed changes are adopted, employers must either increase employees’ weekly salaries to the new minimum weekly thresholds or convert the employees at issue to non-exempt status by January 1, 2024.
Please contact the White Plains Office of Pro Bono Partnership at 914-328-0674 if you have questions.
This document is provided as a general informational service to volunteers, clients, and friends of Pro Bono Partnership. It should not be construed as, and does not constitute, legal advice on any specific matter, nor does distribution of this document create an attorney-client relationship.