New York state will be increasing its minimum wage for hourly employees as well as its minimum salary for exempt employees beginning on December 31, 2017. Here’s what you need to know:
New Minimum Wage
Governor Cuomo signed into law a statewide $15 minimum wage plan that will take the form of a series of wage increases that are scheduled to occur over the next few years, reaching its goal in 2021.
The mandatory wage increases for 2018 are as follows:
- In New York City,
- 10 or fewer employees: From $10.50 to $12.
- 11 or more employees: From $11 to $13.
- Nassau, Suffolk, and Westchester Counties: From $10 to $11.
- The rest of the state: From $9.70 to $10.40
Employers must inform employees about the minimum wage increase and provide notice by posting the applicable minimum wage poster. These rates will take effect on December 31, 2017, and will remain in effect until December 31, 2018.
New Minimum Salary
New York employers also need to be aware of changes that spell out salary threshold increases for salaried employees. Salaried employees with administrative and executive duties need to make above the minimum salary in order for them to be exempt from the minimum wage and overtime rules. If an employer in New York state pays a salaried employee less than the state minimum salary requirement, they will need to pay overtime for that employee.
The mandatory minimum salary increases for 2018 are as follows:
- New York City
- 10 or fewer employees: $46,800
- 11 or more employees: $50,700
- Nassau, Suffolk & Westchester counties: $42,900
- All other parts of the state: $40,560
Employers must notify employees about the minimum salary increase. These rates will also take effect on December 31, 2017, and will remain in effect until December 31, 2018.