It is exceptionally important to maintain compliance with overtime laws in New York, and with that in mind, businesses should ensure they have adjusted payroll and wages to reflect the changes to New York State’s exempt salary threshold for 2024, for executive and administrative classifications.
New York State Exempt Salary Threshold for 2024
With New York State Labor Laws maintaining a higher salary threshold than what is required in the federal Fair Labor Standards Act (FLSA), maintaining compliance is crucial. It is also critical to understand how to properly classify employees.
Updated New York Salary Threshold
UPDATE 12.27.23: The New York State Department of Labor finalized the minimum salary threshold for 2024.
Employers should adjust their minimum exempt salary to $58,458.40 annually ($1,124.20 weekly) to reflect the increase that took effect January 1, 2024 in areas outside of New York City, Westchester County, and Long Island.
While in 2023 there was no salary threshold increase for businesses under local legislation, for 2024 businesses located within New York City, Westchester County, and Long Island, the minimum salary threshold did increase to $62,400 annually (approximately $1,200 weekly).
Previous Threshold
In 2023, the exempt salary threshold was $55,341 annually ($1,064.25 weekly).
In 2023, there was no increase for NYC, Long Island, and Westchester which have their own minimum salary threshold.
New York State Future Salary Thresholds
The NYDOL has scheduled increases for the exempt salary threshold for the next three years starting in 2024.
2025 Update
In 2025, the New York Exempt Salary Threshold will increase to $60,405.80 annually ($1,161.65 weekly) in areas outside of New York City, Westchester County, and Long Island.
Within New York City, Westchester County, and Long Island, the minimum salary threshold will increase to $64,350 annually (approximately $1,237.50 weekly).
2026 Update
In 2026, the New York Exempt Salary Threshold will increase to $62,353.20 annually ($1,199.10 weekly) in areas outside of New York City, Westchester County, and Long Island.
Within New York City, Westchester County, and Long Island, the minimum salary threshold will increase to $66,300 annually (approximately $1,275 weekly).
How to Handle the Update Salary Threshold Updates
In order to continue to maintain compliance with New York Overtime Law, any employers that have employees who met the salary threshold in 2023 but no longer meet the requirements in 2024, have two options:
- Employers can increase the salary or wages of the employee to keep them above the new threshold, or...
- Must begin paying said employees for overtime
Get Help with New York Overtime Requirements
Managers who are having trouble managing the new salary threshold, and ensuring the proper employees get paid for overtime should consider reaching out to a New York State Payroll and HR Company.
If you'd like to learn more about the New York State and New York City minimum wage for 2024, you can click here.
To learn more about how EBC is helping businesses with compliance management through payroll software solutions or our latest HR Service Offerings, contact us today.
