New York state is poised to hike its overtime thresholds for certain salaried employees starting on New Year’s Day.
Under the new guidelines, employees working in New York City, Long Island and Westchester County must earn at least $1,275 a week, or $66,300 annually, to be exempt from overtime, according to the state Department of Labor. That’s up from $1,237.50 a week, or $64,350 annually.
Across the rest of the state, including the Hudson Valley and Catskills regions, the overtime threshold will increase to $1,199.10 per week, or $62,353.20 annually. The threshold was previously set at $1,161.65 per week, or $60,405.80 a year.
Workers whose earnings come in below these thresholds are typically entitled to overtime pay at one and a half times their regular rate of pay for any hours worked over 40 in a workweek.
The increases – which the state Department of Labor releases annually – raise the threshold for an employee to receive overtime pay, making more people with higher salaries exempt.
The new exemptions will largely apply to employees who work in an executive or administrative capacity.
Professional employees will follow the same threshold as federal law, which is currently set at $684 a week or $35,568 annually after a federal judge blocked the Biden administration’s attempts to raise the level.
An executive employee is defined as someone whose main job is typically management, regularly directs the work of two or more other employees, and has the authority to hire and fire workers or make suggestions as to the hiring and firing of workers.
Administrative employees are defined as those whose primary duty is office or nonmanual field work related to management policies or general operations. These workers regularly assist an employer or an employee in an executive role.
A professional employee, meanwhile, is defined as someone whose main duty is the performance of work requiring knowledge in a special field specialized training or study, or a field of artistic endeavor.
The New York State requirements exist alongside federal thresholds. While some occupations might be exempt from overtime under federal law, they could be entitled to overtime under the New York thresholds.
