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Minimum wage and overtime exemption thresholds to increase

Starting in 2019, employees in New York State will see increases in overtime exemption thresholds and minimum wage go into effect. 

Below, we examine the changes and what they mean for the people in New York City as well as those in Suffolk, Nassau and Westchester counties.

Changes to minimum wage

As noted in a recent National Law Review article, people who work at New York City companies with 11 or more employees will see an increase in the minimum wage to $15 per hour. Those at New York City companies with 10 or fewer employees must receive $13.50 per hour. Minimum wage for workers in Suffolk, Nassau and Westchester counties will increase to $12 per hour.

Keep in mind that the this change only affects minimum wages here in New York, not the federal minimum wage, which remains at $7.25 per hour.

Overtime exemption thresholds

Administrative and executive employees who earn a certain amount per week can be exempt from overtime requirements. That threshold is also set to increase in 2019. 

To be exempt from overtime, administrative or executive employees in New York City companies with 11 or more employees must earn $1,125 per week, up from the current $975 per week threshold. Administrative or executive employees in New York City companies with 10 or fewer employees must earn $1,012.50 per week, up from the current $900 per week threshold. 

If you are an administrative or executive employee in Suffolk, Nassau and Westchester counties, you must earn at least $900 per week to be exempt from overtime, which is up from the current $825 per week threshold.

Employers must make adjustments

Employers with employees who do not currently meet the new requirements must make changes to get in compliance within the next few months. This means employees currently earning less than the minimum wage should expect to see their regular wages increased.

Employees who are currently exempt from overtime based on 2018 thresholds should either see an increase in their wages to continue the exemption or start receiving overtime for hours worked over 40 in one week.

If these changes do not occur, employers could face serious penalties and employees have the option to pursue legal action seeking unpaid wages and damages.

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