On December 27, 2023, New York adopted the proposed updated minimum wage rates and salary levels for New York workers that included increases in the minimum wage by $.50 each year through 2026 in addition to increases to the salary level for certain exempt workers.
Effective January 1, 2026, the following key changes are expected to take effect:
Minimum Wage Increase
- New York City, Long Island, and Westchester County: $17 per hour
- Rest of New York State: $16 per hour
Salary Level Increase for Administrative and Executive Exemptions
- New York City, Long Island, and Westchester County: $1,275 per week ($66,300 per year)
- Rest of New York State: $1,199.10 per week ($62,353.20 per year)
Notably, the salary level for professional and computer employee exemptions follows federal law.
Posters and Notices
The NY Department of Labor (DOL) has not yet published updated minimum wage posters and wage orders reflecting these increases. However, as in previous years, it would be expected that these would be made available closer to the effective date or shortly after.
Next Steps for Employers
Employers should be prepared to adjust their payroll practices and procedures before January 1, 2026, including increases to any impacted employee’s hourly wage or salary or reclassification of any exempt employees that no longer meet the minimum salary level to non-exempt. If an employee is reclassified as non-exempt, comply with the New York Wage Theft Prevention Act by providing an updated pay notice.
Employers should also update their minimum wage posters and ensure they are posted in a prominent, accessible location in the workplace. In addition, state law requires employers to provide an electronic version of the poster by including it on the organization’s website, the intranet, or emailing it to employees. Employers must also provide employees with a notice that advises them of the electronic availability of the poster; it is recommended that this notice explains how/where to locate the electronic version of the poster.
As a reminder, minimum wage rates may also differ based on industry such as fast-food workers and home care aids. Additional information on the state’s minimum wage is available from the DOL.
HR Works Can Help
Current HR Works’ Virtual HR Helpline subscribers have unlimited access to answers to questions about the proposed FLSA exempt salary increase, as well as other HR and employment law topics, and 24/7 access to HR Works’ attorney-reviewed online compliance resource center (Comply), which offers human resources tools, forms, and other compliance resources. Additionally, Virtual HR Helpline subscribers receive two free FLSA Assessments each year (with the option to purchase additional assessments for a fee). The HR Helpline can be reached at hrhelp@hrworks-inc.com or by calling 888-668-1271.
HR Strategic Services clients may contact their dedicated HR Consultant.
