The following increases based on employer size and location will go into effect for most employers i. Identify the employees who are affected by these changes. Allan Bloom is an experienced trial lawyer who represents management in a broad range of employment and labor law matters. Employers who violate the Minimum Wage Law are subject to criminal prosecution and penalties. For non-residential employees in New York, this applies to all time in excess of 40 hours in a payroll week.
The 2019 New York minimum wage and exempt status salaries are set to increase, effective December 31, 2018. To some degree, my company benefits from the complexity of our environment. The amount of the increases are determined by location within the state and by employer size. Information on these increases can be found miscellaneous industries , hospitality industry , and building service industry. In preparation, businesses have, or are on the verge of, increasing the salary of employees who otherwise qualify as exempt, or are converting them to non-exempt status and making them overtime eligible. Earlier this year, the U. Labor Law § 650 et seq.
She regularly counsels clients on workplace policies, compliance and litigation prevention strategies. Of course, many employer groups dispute that number, pointing out that employers are as likely to cut hours, reduce headcount, or make other changes to avoid increased labor costs. The additional requirements are not noted in this article. On November 22, a federal district judge in Texas halted the increase, which was scheduled to take effect on December 1. So if, for example, your payroll workweek is Monday to Sunday e. In the last week of December, a Texas Federal Judge suspended the Federal rule changes that were intended to raise the salary basis for employees exempt from overtime that was slated to go into effect on January 1, 2017.
Corresponding increases to the allowances for tips, meals, lodging, utilities, and uniform maintenance also take effect on December 31, 2017. The Above Rates or Other Rates May Change Above we have discussed known pay increases that will occur at the state level in 2018. New Minimum Salary New York employers also need to be aware of changes that spell out salary threshold increases for salaried employees. For the full definition please refer to. Action may also be taken against the employer in civil court. Salaried employees with administrative and executive duties need to make above the minimum salary in order for them to be exempt from the minimum wage and overtime rules.
Bonuses and Commissions May Now Be Included: In a somewhat surprising concession to employers, the new rules will allow non-discretionary bonuses, incentive payments and commissions to count for up to 10% of the minimum salary, provided these amounts are paid at least quarterly. How it works Covered employees must be paid not less than the specified minimum wage per hour for all hours worked. Duties Tests: The new rule contains no changes to the existing duties tests. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. Remember that you can pay overtime-eligible employees on an hourly, salaried, or any other basis so long as you comply with both the minimum wage and overtime laws. See Footnotes 1 The pay-related requirements discussed in the article are one requirement — of many — that must be satisfied for an employee to be considered exempt under the executive, administrative, professional, or commissioned employee exemptions.
Of course, state minimum wage and overtime requirements must also still be met. The content and links on are intended for general information purposes only. However, it is unclear whether payment is based on the federal or state minimum wage. In fact, understanding, communicating, and summarizing these regulations is a key element of our value and service proposition to clients. Rachel has conducted large-scale workplace investigations in connection with defending clients against pending and potential claims involving misclassification, overtime and off-the-clock work. We also represent individuals in transactions and other matters. Kronos is the global leader in delivering workforce management solutions in the cloud.
Arizona, New Jersey, Rhode Island, South Dakota January 1 : In these states and others , the exemptions for executive, administrative, or professional employees do not exempt the employee from minimum wage. However, New York State Department of Labor on December 28 th, 2016 increased the salary basis to mirror the increase in the minimum wage. No attorney-client or confidential relationship is formed by the transmission of information between you and the National Law Review website or any of the law firms, attorneys or other professionals or organizations who include content on the National Law Review website. Related post: Explain the basics of exempt and non-exempt employees with this visual guide. Employers are required to classify employees as either exempt or non-exempt at the time of hire. This then begs the question, if the intent is for employers to remain aware of, understand, and follow the employment requirements, why do labor regulations need to be so complex? Department of Labor is considering revising the white collar employee pay requirements.
Our business at Compass is to understand, summarize, and communicate these requirements for our clients. If an employee works more than 60 hours per week, the required pay will be greater. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. For residential employees that is, live-in workers , this overtime rate applies to all time in excess of 44 hours in a payroll week. Generally, where federal, state, and local laws conflict, the law that is most beneficial to the employee prevails. For our Higher Ed and Non-profit clients and readers, this may not be what you were hoping for in a final rule. Information on these increases can be found miscellaneous industries , hospitality industry , and building service industry.
If you plan to reclassify currently-exempt employees who earn less than the new salary threshold to non-exempt i. The salary level will be pegged to the 40th percentile of full-time salaried workers in the lowest-wage Census region. If you enjoyed this blog post, be sure to follow us on , , and to stay in-the-know every time we publish a post. As employers wait to see whether — and to what extent — the U. If you have any questions or submit the form below.