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Changes to Salary Thresholds for New York Overtime Exemptions Still Expected, Despite Injunction Hal

Although the changes to federal overtime regulations that were expected to become effective on December 1, 2016 have been halted by a preliminary injunction (see our article on this at http://wp.clientsolution.com/pmphr/2016/12/01/new-overtime-rules-halted/), New York employers are not off the hook yet. As we reported previously (see http://wp.clientsolution.com/pmphr/2016/11/10/think-you-are-prepared-for-the-new-overtime-changes-think-again/) the New York Department of Labor has announced proposed changes to overtime exemption salary thresholds applicable to New York employees. The period for public comments on the proposed changes ended on December 3, 2016, with a final rule likely to be issued this month.

Under the proposed changes, the salary thresholds for the administrative and executive exemptions to New York’s overtime requirements would be updated as follows:

For employees working for “large” employers (11 or more employees) in New York City:

  1. $825.00 per week on and after December 31, 2016;

  2. $975.00 per week on and after December 31, 2017;

  3. $1,125.00 per week on and after December 31, 2018.

For employees working for “small” employers (fewer than 11 employees) in New York City:

  1. $787.50 per week on and after December 31, 2016;

  2. $900.00 per week on and after December 31, 2017;

  3. $1,012.50 per week on and after December 31, 2018;

  4. $1,125.00 per week on and after December 31, 2019.

For employees working in Nassau, Suffolk and Westchester Counties:

  1. $750.00 per week on and after December 31, 2016;

  2. $825.00 per week on and after December 31, 2017;

  3. $900.00 per week on and after December 31, 2018;

  4. $975.00 per week on and after December 31, 2019;

  5. $1,050.00 per week on and after December 31, 2020;

  6. $1,125.00 per week on and after December 31, 2021.

For upstate employees –i.e., those working anywhere other than New York City or Nassau, Suffolk, or Westchester County:

  1. $727.50 per week on and after December 31, 2016;

  2. $780.00 per week on and after December 31, 2017;

  3. $832.00 per week on and after December 31, 2018;

  4. $885.00 per week on and after December 31, 2019;

  5. $937.50 per week on and after December 31, 2020.

Thus, while the changes to federal exemption salary thresholds may never come to pass, in view of the preliminary injunction recently issued by a federal judge in Texas, employers in New York should prepare themselves for changes to salary exemptions under New York law. Employers who have employees in different parts of the state should pay close attention to the differing requirements base on location.

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Portnoy, Messinger, Pearl & Associates, Inc. is here to answer any questions you have regarding this matter.  Please keep in mind that in addition to our staff of seasoned HR professionals, we also have a staff of experienced employment lawyers on hand to address any questions you may have regarding compliance.

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