New York Wage Adjustments for 2025

As employers close out 2024 and prepare for 2025, they should be aware of forthcoming increases to the minimum salary thresholds that executive and administrative employees must be paid in order to maintain their exempt status, set to take effect January 1, 2025.  As a quick reminder, to qualify as exempt from minimum wage and overtime pay requirements under New York law under the executive and administrative exemptions, an employee must meet the relevant duties-related test for the exemption and be paid at least the minimum salary threshold on a salary basis.

Currently, exempt executive and administrative employees in New York City, Long Island, and Westchester County must be paid at least $1,200 per week (or $62,400 per year). On January 1, 2025, that is set to increase to $1,237.50 per week (or $64,350 per year). For the remainder of New York state, the current rate is $1,124.20 (or $58,458.40 per year) and will increase to $1,161.65 per week (or $60,405.80 per year) on January 1. New York also recognizes a “professional” exemption for employees who satisfy the duties-related test for that exemption. However, under New York law the professional exemption does not have an associated salary threshold that need be paid.

The upcoming increases are the result of regulations adopted by the New York State Department of Labor (“NYSDOL”) last year which established annual increases to the state minimum salary thresholds for the executive and administrative exemptions through January 1, 2026. You can read more about the regulations here and here.

Separately, employers may recall that the United States Department of Labor (“USDOL”) issued a final rule which, in part, increased the minimum salary thresholds for the executive, administrative, and professional exemptions under the Fair Labor Standards Act (“FLSA”) to $844 per week ($35,568 per year) as of July 1, 2024. Much like the NYSDOL regulations, the USDOL’s final rule established regular annual increases to the salary thresholds, the next of which was set to take effect on January 1, 2025.  Earlier this month, however, the final rule was struck down on a nationwide basis by the US District Court for the Eastern District of Texas. As such, the federal salary threshold for the executive, administrative, and professional exemptions has returned to $684 per week.

Finally, employers should be aware that the minimum wage in New York will also be increasing to $16.50 per hour for New York City and the downstate region and to $15.50 per hour for the remainder of the state.

Employers with questions about these updates, exemption classifications, or other wage and hour requirements should contact Kate Townley at ktownley@fglawllc.com or any other attorney at the Firm.

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