New York Adopts Changes to Overtime Thresholds for Certain Employees

On Dec. 28, 2016, the New York State Department of Labor posted its Notice of Final Adoption (see page 29) in the State Register of regulations that not only officially increase the state’s minimum wage, but also increase the income thresholds that allow employers to classify employees as “exempt” from receiving overtime pay. The adopted changes to New York’s regulations on overtime were originally proposed on Oct. 19, 2016, adopted without amendment, and became effective Dec. 31, 2016. A memo prepared by Hinman Straub, LeadingAge NY’s general counsel, summarizes the final regulations.

These state regulations were adopted shortly after changes were made to the federal regulations governing the application of the “White Collar” exemptions under the Fair Labor Standards Act (“FLSA”), which were scheduled to take effect Dec. 1, 2016. However, the federal regulations were stayed nationwide pursuant to a Nov. 22, 2016 preliminary injunction issued by the U.S. District Court for the Eastern District of Texas.

Prior to this latest change, New York’s regulations required that executive and administrative employees needed to earn a minimum weekly income of $675 to be exempt. The revised regulations impose a series of annual increases to the weekly income threshold depending on the location of the employer within New York State. These increases are detailed in the Hinman Straub memo. LeadingAge NY had commented on the proposed New York regulations, arguing that the state should delay moving forward until the challenge to the federal regulations is resolved.

Contact: Dan Heim, dheim@leadingageny.org, 518-867-8866