Friendly Reminder: NYS Minimum Wage Rate and Minimum Salary Level for Exempt Employees Increase on December 31, 2018

In 2016, New York State Department of Labor adopted a schedule of increases to both the minimum wage rate for hourly workers and the minimum salary level for exempt executive and administrative employees.  The increases are scheduled to take effect each year on New Year ’s Eve and are specific to the employer’s geographic location and size.

This year’s updates, which will take effect on December 31, 2018, are as follows:

  • The minimum wage outside of New York City (NYC) will increase to $11.10; in Nassau, Suffolk, and Westchester Counties it will increase to $12.00; for small NYC employers, it will increase to $13.50; and for large NYC employers, it will increase to $15.00.
  • The minimum salary level for exempt executive and administrative employees outside of the NYC area will increase to $832.00; in Nassau, Suffolk, and Westchester Counties, it will increase to $900.00; for small NYC employers, it will increase to $1,012.50; and for large NYC employers, it will increase to $1,125.50.

The following charts outline the additional increases planned over the coming years: 

Hourly Minimum Wage Rate Increases
Effective Date Outside NYC Area Nassau, Suffolk, and Westchester Counties NYC: Small Employers (10 or fewer employees) NYC: Large Employers (11 or more employees)
December 31, 2018 $11.10/hour $12.00/hour $13.50/hour $15.00/hour
December 31, 2019 $11.80/hour $13.00/hour $15.00/hour
December 31, 2020 $12.50/hour $14.00/hour

December 31, 2021

DOB to use indices to
determine any increase
$15.00/hour

 

Increases to Minimum Salary Level for Exempt Executive and Administrative Employees*
Effective Date Outside NYC Area Nassau, Suffolk, and Westchester Counties NYC: Small Employers (10 or fewer employees) NYC: Large Employers (11 or more employees)
December 31, 2018 $832.00 $900.00 $1,012.50 $1,125.00
December 31, 2019 $885.00 $975.00 $1,125.00
December 31, 2020 $937.00 $1,050.00
December 31, 2021 $1,125.00

 

* Note, the increases do not apply to the professional exemption, for which there is no salary requirement under New York law.

An in depth discussion of the correct regional rates, overtime rates, and calculation of employer size can be found in our previous post.

Please feel free to contact any member of our Labor and Employment practice group if you have questions about the minimum wage increases or minimum salary level increases and how they might affect your workplace.

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