New York state will increase its overtime pay thresholds for specific salaried employees starting January 1, 2024. This change affects workers in New York City, Long Island, and Westchester County, who will now need to earn at least $1,275 per week, or $66,300 annually, to qualify as exempt from overtime pay. Previously, the threshold was set at $1,237.50 per week, or $64,350 annually, according to the New York State Department of Labor.
In other regions of the state, including the Hudson Valley and Catskills, the new overtime threshold will rise to $1,199.10 per week, or $62,353.20 annually. This represents an increase from the former threshold of $1,161.65 per week, or $60,405.80 annually. Employees earning below these thresholds are generally entitled to overtime pay at a rate of one and a half times their regular pay for any hours worked over 40 in a workweek.
Details of the New Overtime Regulations
The adjustments announced by the state Department of Labor are part of an annual review intended to reflect changes in the cost of living and wage standards. With these new thresholds, more employees will be exempt from receiving overtime pay, particularly those in executive or administrative roles.
An executive employee is defined as someone whose primary responsibility is management, who regularly directs the work of two or more other employees, and possesses the authority to hire and fire staff or make recommendations concerning such actions. Administrative employees are those whose main duties involve office or nonmanual work related to management policies or general operations, commonly assisting an employer or an executive employee.
Professional employees, whose work demands specialized knowledge or training, will continue to follow the same threshold as federal law, currently set at $684 per week or $35,568 annually. This remains unchanged following a federal court ruling that blocked attempts by the Biden administration to raise the federal threshold.
Implications for Workers and Employers
These new regulations coexist with federal requirements, meaning some occupations may be exempt from overtime under federal law but still entitled to it under New York state laws. This dual framework aims to protect workers while providing clarity for employers regarding their obligations.
The forthcoming changes are expected to impact thousands of salaried employees across New York State. As the cost of living continues to rise, these adjustments are seen as a necessary step to ensure fair compensation for workers. The increased thresholds aim to provide clarity and support for employees, particularly in high-cost areas, by allowing them to receive appropriate compensation for their labor.
With these new guidelines, New York State reaffirms its commitment to adapting labor laws to the evolving economic landscape, emphasizing the importance of fair wages for all workers.
