NY'S CHANGING EXECUTIVE AND ADMINISTRATIVE EXEMPTION SALARY THRESHOLD

New York’s proposed salary threshold requirement for executive and administrative employees, if adopted, is set to out-pace the currently stalled federal EAP salary exemption. As discussed HERE, a federal court in Texas has issued an injunction preventing the increase in federal EAP salary threshold from taking effect. New York provides a salary based exemption for executive and administrative employees. New York’s threshold is set to increase as follows:

For employers of eleven or more employees in NYC:

  • $825.00 per week on and after December 31, 2016

  • $975.00 per week on and after December 31, 2017

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

For employers of ten or fewer employees in NYC

  • $787.50 per week on and after December 31, 2016

  • $900.00 per week on and after December 31, 2017

  • $1,012.50 per week on and after December 31, 2018

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

(2) For employers in Nassau, Suffolk and Westchester counties:

  • $750.00 per week on and after December 31, 2016

  • $825.00 per week on and after December 31, 2017

  • $900.00 per week on and after December 31, 2018

  • $975.00 per week on and after December 31, 2019

  • $1,050.00 per week on and after December 31, 2020

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

(3) For all other areas of New York State

  • $727.50 per week on and after December 31, 2016

  • $780.00 per week on and after December 31, 2017

  • $832.00 per week on and after December 31, 2018

  • $885.00 per week on and after December 31, 2019

  • $937.50 per week on and after December 31, 2020

Therefore, for NYC employers of eleven or more employees, the state thershold outpaces the federal threshold on December 31, 2017. For small NYC employers, the state threshold outpaces the federal threshold on December 31, 2018. For Nassau, Suffolk and Westchester employees, the state threshold outpaces the federal exemption on December 31, 2019. For the remainder of New York State employers, the state threshold outpaces the federal threshold on December 31, 2020. These changes are something that employers should consider when deciding how to deal with the current injunction on the DOL's EAP regulations taking effect, as discussed here. The NY DOL will take public comment on December 3, 2016, after which these proposals will likely take effect. Make sure to check this blog as we follow this legislation for updates on future developments.

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