The New York Department of Labor (NY DOL) has published its proposed increases to the salary level for administrative and executive exempt employees, as well as, the minimum wage for non-exempt employees.
In our prior post, it was projected that the salary level would increase statewide at a rate of 75 times the applicable minimum wage. In an interesting turn, the salary level increase for downstate is reflective of this projected calculation; however, the salary level for upstate is slightly less than the projected percentage increase. The increases are to take effect on January 1, 2024, as follows:
- NYC, Long Island, and Westchester County
$1,200 per week ($62,400 per year) - Remainder of the State
$1,124.20 per week ($58,458.40 per year)
It is unclear when the proposed rates will be finalized by the NY DOL, but it is projected that they will be finalized by the end of the month, so employers should not delay in preparing to make adjustments if needed.
Next Steps
Employers will need to review and adjust their payroll and budgets to accommodate the higher wages. Employers should prepare to make any necessary changes for 2024 by December 31, 2023. Updates might result in increasing an employee’s hourly wage or salary or reclassifying exempt employees to non-exempt if they will no longer meet the exemption salary requirement.
To comply with the New York Wage Theft Prevention Act, updated pay notices may need to be provided to employees who are being reclassified from exempt to non-exempt.
HR Works will continue to monitor this topic and provide updates as they become available.
