New York Labor and Employment Law Report

Employers in New York will be required to comply with the new state minimum wage rates and the new state salary thresholds to qualify for the executive and administrative exemptions, effective December 31, 2020.

Read More >> Reminder: New York Minimum Wage Rates and Salary Thresholds for the Executive and Administrative Exemptions Will Increase on December 31, 2020

Last week, the New York State Department of Labor formally adopted an amendment to the Minimum Wage Order for Miscellaneous Industries and Occupations that cuts the tip credit for all miscellaneous industry workers in half effective June 30, 2020. The amendment also eliminates the tip credit completely for miscellaneous industry workers effective December 31, 2020. As we previously reported on this blog, the NYSDOL recommended the elimination of the tip credit for miscellaneous industry workers after holding multiple hearings across the state regarding the impact of tip credits and Gov. Cuomo announced in January that the NYSDOL's recommendation would be implemented in two phases.

Read More >> Reminder: The Tip Credit for Employees Outside the Hospitality Industry Has Been Cut in Half Effective Today

The New York State Department of Labor, after holding multiple hearings across the state regarding the impact of tip credits for employees covered by the Minimum Wage Order for Miscellaneous Industries and Occupations, issued a report recommending the elimination of the tip credit for all miscellaneous industry workers.  Governor Cuomo recently announced that this recommendation will be implemented in two phases.  Effective June 30, 2020, the tip credit will be cut in half.  Effective December 31, 2020, the tip credit will be eliminated entirely.  This will affect an estimated 70,000 employees, in occupations such as car wash attendants, nail and hair salon workers, tow truck drivers, dog groomers, wedding planners, tour guides, and valet parking attendants.  This will not affect employees covered by the Hospitality Industry Wage Order, such as service employees and food service workers in hotels and restaurants.

Read More >> Governor Cuomo Announces Plan to Eliminate Tip Credit for Employees Outside the Hospitality Industry

Although the minimum wage rate under the Fair Labor Standards Act remains $7.25 per hour and the U.S. Department of Labor has not issued any new proposed regulations to raise the minimum salary to qualify for a white-collar exemption under federal law, employers in New York will be required to comply with the new state minimum wage rate and the new state salary threshold to qualify for the executive and administrative exemptions, effective December 31, 2018.

Read More >> Reminder: New York Minimum Wage Rates and Salary Thresholds for the Executive and Administrative Exemptions Will Increase on December 31, 2018

Although the minimum wage rate under the Fair Labor Standards Act remains $7.25 per hour and the U.S. Department of Labor’s efforts to raise the minimum salary to qualify for a white-collar exemption under federal law have stalled, employers in New York should be aware that the state minimum wage rate and the state salary threshold to qualify for the executive and administrative exemptions will increase effective December 31, 2017.

The increases to the state minimum wage effective December 31, 2017, are as follows:

• Employers outside of New York City, Nassau, Suffolk, and Westchester counties:  $10.40 per hour
• Employers in Nassau, Suffolk, and Westchester counties:  $11.00 per hour
• Employers in New York City with 10 or fewer employees:  $12.00 per hour
• Employers in New York City with 11 or more employees:  $13.00 per hour

Fast food employees will be entitled to an even higher wage rate effective December 31, 2017, as follows:

• Fast food employees outside of New York City:  $11.75 per hour
• Fast food employees in New York City:  $13.50 per hour

The salary threshold to qualify for the executive and administrative exemptions effective December 31, 2017, are as follows:

• Employers outside of New York City, Nassau, Suffolk, and Westchester counties:  $780.00 per week
• Employers in Nassau, Suffolk, and Westchester counties:  $825.00 per week
• Employers in New York City with 10 or fewer employees:  $900.00 per week
• Employers in New York City with 11 or more employees:  $975.00 per week

New York does not set a salary threshold to qualify for the professional exemption, so employees must meet the current federal salary threshold of $455.00 per week to qualify for the professional exemption.  For all of the white-collar exemptions, employees must also meet the applicable duties requirements.

A chart summarizing the minimum wage rates, tip credits, uniform maintenance allowances, meal and lodging credits, and exempt salary thresholds under the Miscellaneous Industries Wage Order can be found here.  A chart summarizing this same information under the Hospitality Industry Wage Order can be found here.