19 January 2017 New York businesses reminded of minimum wage increase, change in salary basis for exempt employees As we previously reported, legislation was enacted last year that gradually increases the minimum wage for many New York employees to $15 per hour by January 1, 2019 (for businesses with 11 or more employees) and by January 1, 2020 (for businesses with 10 more). For the first time, varying minimum wage rates will apply to several regions in the state. The first phase-in of the minimum wage applies effective December 31, 2016, with the basic minimum wage rising to $9.70 per hour in most of the state. Employers are required to post a Minimum Wage Information poster in their establishment. A lookup table is now available to find the minimum wage rate that applies based on the year, industry and New York regional location of your employees.The general minimum wage rate schedule is shown below.(New York Department of Labor website; New York minimum wage fact sheet.)
* Annual increases for the rest of the state will continue until the rate reaches $15 minimum wage (and $10 tipped wage). Starting 2021, the annual increases will be published by the Commissioner of Labor on or before October 1. They will be based on percentage increases determined by the Director of the Division of Budget, based on economic indices, including the Consumer Price Index. In its list of frequently asked questions (FAQs), the New York Department of Labor confirmed that the minimum weekly salary for overtime exempt administrative and executive employees also increased on December 31, 2016. The Department states that each time the state's minimum wage increases, the state's minimum salary required for executive and administrative employees increases proportionately. Accordingly, effective December 31, 2016, the state minimum weekly salary for administrative and executive employees will range from $727.50 per week for employees outside of New York City and Nassau, Suffolk and Westchester counties and $825.00 per week for employees who work in New York City for large employers and fast food establishments. All of the FAQs pertaining to the increase in the minimum wage are available here.
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