The New York State Department of Labor has released the new minimum salary for exempt employees beginning in 2021. The new minimum salary will be $56,000, with an additional $1,800 per year for every year beyond 2020.

This means that if you have a full-time exempt employee who has worked with your company for more than one year, and they make less than $56,000 per year as of December 31, 2020, they will need to receive a raise to meet the new minimum salary requirement.

In order for you to avoid having to give raises to employees who already make more than $56,000 per year (and therefore can’t be considered exempt), but who will fall below that amount in 2021 when the new minimum salary kicks in, it’s important that you update your company’s policies now.

If you need help updating your company policies or ensuring that all employees are meeting all requirements before December 31st 2020, please don’t hesitate to reach out!

Nys Minimum Salary For Exempt Employees 2021

As of this writing, NYS Department of Labor has not yet published the revised wage orders and summaries for most industries with the exception of the Building Service Industry for which the summary of wage order rates has been published. These documents are what employers typically reference for the NYS minimum wage and salary thresholds each year.

Long Island & Westchester moved to $15 per hour as of December 31, 2021 as well as a corresponding salary threshold of $1,125. New York City (both small and large employers) was already at the salary threshold that equates to a $15 per hour minimum wage so had no changes as of December 31.

For the remainder of NYS, the Building Services summary of wage order rates does include a chart of the minimum wage history back to 2016 and shows the $13.20 per hour minimum wage effective December 31, 2021. It also has other rate info as well as a chart of the salary thresholds for the executive and administrative exemptions. This includes the new salary threshold of $990 per week ($51,480 when annualized) in effect as of December 31, 2021. A reminder that the professional exemption is not covered by the NYS salary threshold and would therefore defer to the federal FLSA salary threshold, currently $684 per week ($35,568 when annualized).

Since the Building Service Industry summary does show the anticipated $990 per week salary threshold, it would be prudent for NYS employers in other industries subject to this threshold to ensure their exempt executive and administrative employees are at or above the threshold even though the wage orders for all the other industries have yet to be published. Keep in mind that employers may certainly choose not to move those exempt employees to the higher salary threshold and instead change their status to nonexempt to avoid further NYS  mandated salary increases going forward. We recommend discussing such changes and any related employee communications with your employment law attorney to ensure proper compliance.

Greater Rochester Chamber members with questions on this or other HR-related issues may contact the following HR Helpline staff for assistance: Kathy Richmond at (585) 256-4618 and Jennifer Suppé at (585) 256-4608.

The New York State minimum wage rates and minimum overtime-exempt salary levels for employees working outside of New York City will increase on December 31, 2021. New York State employers with employees working in the State and outside of New York City should review the changes and make the necessary adjustments to ensure they are in compliance with the new requirements when they become effective.

MINIMUM WAGE INCREASES

New York State’s minimum hourly wage rates for non-fast-food workers outside of New York City will increase on December 31, 2021, as follows:

• Nassau, Suffolk and Westchester counties: $14.00 to $15.00 per hour;
• Remainder of the State outside of New York City: $12.50 to $13.20 per hour.

As of July 1, 2021, the minimum hourly wage rate for fast-food workers statewide is $15.00 per hour.

MINIMUM WAGE INCREASES FOR TIPPED EMPLOYEES

New York State’s minimum hourly wage rates for “tipped employees” in the hospitality industry (food service workers and service employees) in Nassau, Suffolk and Westchester counties will increase on December 31, 2021, as follows:

• Food service workers: $9.35 cash with $4.65 tip credit to $10.00 cash with $5.00 tip credit per hour;
• Service employees: $11.65 cash with $2.35 tip credit to $12.50 cash with $2.50 tip credit per hour ($3.25 tip threshold for non-resort hotel employees) ($8.40 tip threshold for resort hotel employees).

MINIMUM SALARY INCREASES FOR OVERTIME-EXEMPT EXECUTIVE AND ADMINISTRATIVE EMPLOYEES

New York State’s minimum salary levels for overtime-exempt executive and administrative employees will increase on December 31, 2021, as follows:

• Nassau, Suffolk and Westchester counties: $1,050 to $1,125 per week ($58,500 annually);
• Remainder of the State outside of New York City: $937.50 to $990 per week ($51,480 annually).

New York State does not have a minimum salary level for professional employees. Therefore, employers that wish to treat such employees as exempt from overtime must pay the federal minimum salary level of $684 per week ($35,568 annually), unless an exemption from the minimum salary level otherwise applies.

Additional Assistance

For further assistance, please contact any of the attorneys on our Labor & Employment Practice Team or the Phillips Lytle attorney with whom you have a relationship.