NYS Increases Overtime Salary Exemption Effective 12/31/2016

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The New York State Department of Labor has updated their overtime regulations.
Read on to determine if your business will be affected.


On December 29, 2016, the NYS DOL announced that the overtime exempt salary threshold will increase for Administrative and Executive exempt employees effective December 31, 2016.

Key Elements of the new regulations:

The overtime exempt salary threshold is determined by the employer’s location.

Location 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 2021
NYC – Large (11 or more) $825.00 $975.00 $1,125.00
NYC – Small (10 or less) $787.50 $900.00 $1,012.50 $1,125.00
Nassau, Suffolk & Westchester $750.00 $825.00 $900.00 $975.00 $1,050.00 $1,125.00
Greater New York State $727.50 $780.00 $832.00 $885.00 $937.50

In response to the new rules, employers have the following options:

  1. Pay time-and-a-half for overtime work.
  2. Raise employee’s salary above the new threshold (see table above).
  3. Limit an employee’s hours to 40 hours per week.
  4. Some combination of the above.

How do I know if my employee should be paid overtime?

If an employee has worked more than 40 hours in a pay week, then the employee must be paid an overtime rate for all hours over 40. However, some employees may be exempt from the overtime pay provisions, such as employees employed as bona fide executive, administrative, professional, outside sales employees and certain computer employees.  To qualify for exemption, employees must meet certain tests regarding their job duties and be paid on a salary basis at not less than amount listed in the table above.

Please refer to the following FAQ’s or call NYS DOL with any questions at 457-9000.