Fashion Counsel with Anthony V. Lupo

Arent Fox's fashion law blog offers news, analysis, and insights for the industry from fashion attorney Anthony Lupo.

Fashion Counsel with Anthony V. Lupo

New York Exemption Threshold Set to Increase on Dec. 31

alert

New York Exemption Threshold Set to Increase on Dec. 31

On December 31, 2016, at 12:01am (i.e. not January 1, 2017), the New York State Department of Labor will implement regulations increasing the salary threshold exempting employees from overtime-pay requirements for most private employers. Although implementation of the federal regulations has been delayed, as noted in this Arent Fox alert, New York State is continuing with its regulation. This means that, regardless of the outcome at the federal level, more New York State employees will become eligible for overtime pay throughout the state.

The NYS DOL salary threshold will be raised to different levels in different areas of the state, as explained in the chart below. The State’s goal is to have many more employees become eligible for overtime pay over the next five years. 

Location

NYC, 11+ employees

NYC, <11 employees

Nassau, Suffolk, Westchester Counties

Remainder of the State

Eff. Dec. 31, 2016

$825*

$787.50
 

$750
 

$727.50

Eff. Dec. 31, 2017

$975

$900

$825

$780

Eff. Dec. 31, 2018

$1,125

$1,012.50

$900

$832

Eff. Dec. 31, 2019

--

$1,125

$975

$885

Eff. Dec. 31, 2020

--

--

$1,050

$937.50

Eff. Dec. 31, 2021

--

--

$1,125

--

* All numbers are expressed as weekly salaries. To determine the equivalent annual salary, multiply the weekly figure by 52.

On December 23, 2016, the DOL clarified how to treat employees whose employers conduct business throughout the state. In order to maintain exempt status, employees’ salaries will need to change during periods in which they work in higher-threshold jurisdictions. For example, an exempt employee at a large company, making $730/week at his main office in Ulster County, who is sent on a one-week assignment to the employer’s New York City office, will need to receive $825 that week to remain exempt for the time worked in New York City.
 
Arent Fox will continue to monitor any information released by the Department that could affect the operations of our clients. If you have any questions about the new regulations, please contact the authors, any other members of the Arent Fox Labor & Employment Group, or the Arent Fox professional who regularly handles your matters.

SUBSCRIBE

Add the Arent Fox Fashion Law blog to your RSS feed reader.

Arent Fox In Your Inbox
To subscribe to Arent Fox Alerts and other news, click here.

ABOUT ARENT FOX LLP

Arent Fox LLP, founded in 1942, is internationally recognized in core practice areas where business and government intersect. With more than 350 lawyers, the firm provides strategic legal counsel and multidisciplinary solutions to clients that range from Fortune 500 corporations to trade associations. The firm has offices in Los Angeles, New York, San Francisco, and Washington, DC.