Effective December 31, 2018 the minimum wage will rise across New York. The new minimum wage will vary depending on the location and, in New York City, the size of the business. In order for exempt employees to remain exempt into the new year, employers will need to ensure that their annual salaries meet the new required minimum salary threshold.
Beginning December 31, 2018, the following minimum wages are in effect:
|Employers outside of Nassau, Suffolk and Westchester counties or NYC||$11.10 per hour|
|Nassau, Suffolk and Westchester employers||$12.00 per hour|
|New York City employers with 10 or fewer employees||$13.50 per hour|
|New York City employers with 11 or more employees||$15.00 per hour|
|Employers outside of Nassau, Suffolk and Westchester counties or NYC|| |
$832 per week
|Nassau, Suffolk and Westchester employers|| |
$900 per week
|New York City employers with 10 or fewer employees|| |
$1,012.50 per week
|New York City employers with 11 or more employees|| |
$1,125 per week
Because overtime exemption is analyzed on the basis of workweeks, rather than years, salary increases must conform to the new requirements by the first day of the workweek in which December 31, 2018 falls. Non-compliant employers risk losing the exemption for that workweek, and may be subject to penalties from local, state or federal authorities. Employers may not count an employee’s nondiscretionary bonuses, incentive payments, or commissions towards their salary to reach the minimum.
Remember, under New York’s Wage Theft Prevention Act (“WTPA”), employers are required to give written notices to each new hire with the following information:
- Rate or rates of pay, including overtime rate of pay if applicable;
- How the employee is paid (hourly, per shift, daily, weekly, by commission, etc.);
- Regular payday;
- Official name of the employer and any other names used for business;
- Address and phone number of the employer’s main office or principal location;
- Allowances taken as part of the minimum wage (tip, meal, and lodging deductions); and
- The notice must be in English and in the employee’s primary language if the Department of Labor offers a translation
If any of the above data changes, employers must give the employee a week’s notice, unless the employee’s new paystub carries the notice. However, employers must notify an employee in writing before reducing his or her wage rate. Employers in the hospitality industry must give notice every time an employee’s wage rate changes.