Tag: salary basis

November 23, 2018

2019 New York Minimum Wage

Do you know the 2019 New York minimum wage? Employers must be ready before the end of the year to meet the new requirements.

The 2019 New York minimum wage rates are shaded in blue in the tables below. Note that the changes take effect on the last day of the year, not January 1st.

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Standard New York Minimum Wage

The 2019 New York minimum wage varies by geographic location, employer size (where applicable), and sometimes by industry.

For most private employers, the 2019 New York minimum wage in the following chart applies. This chart also applies for non-teaching employees of public school districts or a BOCES. However, there is no New York minimum wage for other employees of public (governmental) employers (but the federal minimum wage of $7.25 does apply).

**General Minimum Wage Rate Schedule**
Location	12/31/17	12/31/18	12/31/19	12/31/20	2021
NYC – Large Employers (of 11 or more)	$13.00	$15.00
NYC – Small Employers (10 or less)	$12.00	$13.50	$15.00
Long Island & Westchester	$11.00	$12.00	$13.00	$14.00	$15.00
Remainder of New York State	$10.40	$11.10	$11.80	$12.50	TBD*

* Annual increases for the rest of the state will continue until the rate reaches a $15 minimum wage. Starting 2021, the annual increases will be published by the Commissioner of Labor by October 1. They will be based on percentage increases determined by the Director of the Division of Budget, based on economic indices, including the Consumer Price Index.

Minimum Wage for Tipped Employees in the Hospitality Industry

New York State has separate minimum wage rules for employees in the hospitality industry. These rules apply to businesses running a restaurant or hotel.

The minimum wage rates for most non-tipped employees in the hospitality industry are set as per the schedule above. However, employers may count a portion of certain tipped employees’ gratuities toward the minimum wage requirements. This is known as a “tip credit.”

New York State has two separate cash wage and tip credit schedules for tipped hospitality employees who qualify as “food service workers” and “service employees.”

Food Service Workers

A food service worker is any employee who is primarily engaged in serving food or beverages to guests, patrons, or customers in the hospitality industry who regularly receive tips. This includes wait staff, bartenders, captains, and busing personnel. It does not include delivery workers.

**Hospitality Industry Tipped Minimum Wage Rate Schedule (Food Service Workers)**
Location	12/31/17	12/31/18	12/31/19	12/31/20	2021
NYC – Large Employers (of 11 or more)	$8.65 Cash $4.35 Tip	$10.00 Cash $5.00 Tip
NYC – Small Employers (10 or less)	$8.00 Cash $4.00 Tip	$9.00 Cash $4.50 Tip	$10.00 Cash $5.00 Tip
Long Island & Westchester	$7.50 Cash $3.50 Tip	$8.00 Cash $4.00 Tip	$8.65 Cash $4.35 Tip	$9.35 Cash $4.65 Tip	$10.00 Cash $5.00 Tip
Remainder of New York State	$7.50 Cash $2.90 Tip	$7.50 Cash $3.60 Tip	$7.85 Cash $3.95 Tip	$8.35 Cash $4.15 Tip

Service Employees

The next schedule applies to other service employees. A service employee is one who is not a food service worker or fast food employee who customarily receives tips above an applicable tip threshold (which also follows schedules, not shown here).

**Hospitality Industry Tipped Minimum Wage Rate Schedule (Service Employees)**
Location	12/31/17	12/31/18	12/31/19	12/31/20	2021
NYC – Large Employers (of 11 or more)	$10.85 Cash $2.15 Tip	$12.50 Cash $2.50 Tip
NYC – Small Employers (10 or less)	$10.00 Cash $2.00 Tip	$11.25 Cash $2.25 Tip	$12.50 Cash $2.50 Tip
Long Island & Westchester	$9.15 Cash $1.85 Tip	$10.00 Cash $2.00 Tip	$10.85 Cash $2.15 Tip	$11.65 Cash $2.35 Tip	$12.50 Cash $2.50 Tip
Remainder of New York State	$8.65 Cash $1.75 Tip	$9.25 Cash $1.85 Tip	$9.85 Cash $1.95 Tip	$10.40 Cash $2.10 Tip

Fast Food Minimum Wage

Non-exempt employees at some “fast food” restaurants are subject to an alternative minimum wage schedule.

This schedule applies to employees who work in covered fast food restaurants whose job duties include at least one of the following: customer service, cooking, food or drink preparation, delivery, security, stocking supplies or equipment, cleaning, or routine maintenance.

These special New York minimum wage rates only apply to fast food restaurants that are part of a chain with at least 30 restaurants nationally.

**Fast Food Minimum Wage Rate Schedule**
Location	12/31/17	12/31/18	12/31/19	12/31/20	7/1/2021
New York City	$13.50	$15.00
Outside of New York City	$11.75	$12.75	$13.75	$14.50	$15.00

Note: No tip credit is available for fast food employees.

Overtime Threshold

Along with increases to the 2019 New York minimum wage, the salary requirement to maintain some overtime exemptions will also increase.

The salary threshold for New York’s executive and administrative exemptions go up on December 31st. These amounts are all higher than the federal Fair Labor Standards Act (FLSA) threshold, which remains at $455/week. But most New York employers (other than governmental entities) must satisfy the higher New York threshold to ensure full overtime exemption.

There is no salary requirement for New York’s professional exemption. But employers must also satisfy the $455/week FLSA threshold for most professional employees. Doctors, lawyers, and teachers do not have a salary requirement for exemption.

**Executive & Administrative Exemption Weekly Salary Threshold Schedule**
Location	12/31/17	12/31/18	12/31/19	12/31/20	2021
NYC – Large Employers (of 11 or more)	$975.00	$1,125.00
NYC – Small Employers (10 or less)	$900.00	$1,012.50	$1,125.00
Long Island & Westchester	$825.00	$900.00	$975.00	$1,050.00	$1,125.00
Remainder of New York State	$780.00	$832.00	$885.00	$937.50	TBD*

Prepare Now for the 2019 New York Minimum Wage

New York employers should review their compensation levels and make necessary changes by December 31, 2018. This might result in increasing an employee’s hourly wage or salary or reclassifying exempt employees to non-exempt if they will no longer meet the exemption salary requirement.

And, remember, the 2019 New York minimum wage rates only last one year in most cases. Companies will have to review this again next year.

To keep up on New York and federal wage and hour requirements and other employment law topics, you can sign up for the Horton Law email newsletter here!

December 6, 2017

New York Minimum Wage Increases on 12/31/17

Don’t forget that the New York minimum wage will increase for most employers on December 31, 2018.

Note that the change takes effect on the last day of 2017, not the first day of 2018.

Standard New York Minimum Wage

The chart below shows the current minimum wage and scheduled increases, by geographic location and employer size (where applicable), for most New York private employers. These also apply for non-teaching employees of public school districts or a BOCES. There is no New York minimum wage for other employees of public (governmental) employers (but the federal minimum wage of $7.25 does apply).

**General Minimum Wage Rate Schedule**
Location	12/31/16	12/31/17	12/31/18	12/31/19	12/31/20	2021
NYC – Large Employers (of 11 or more)	$11.00	$13.00	$15.00
NYC – Small Employers (10 or less)	$10.50	$12.00	$13.50	$15.00
Long Island & Westchester	$10.00	$11.00	$12.00	$13.00	$14.00	$15.00
Remainder of New York State	$9.70	$10.40	$11.10	$11.80	$12.50	TBD*

New York Minimum Wage for Tipped Employees in the Hospitality Industry

New York State has separate minimum wage rules for employees in the hospitality industry.

The hospitality industry includes any restaurant or hotel.

The minimum wage for most non-tipped employees in the hospitality industry are set as per the schedule above. However, employers may count a portion of certain tipped employees’ gratuities toward the minimum wage requirements. This is known as a “tip credit.”

New York State has two separate cash wage and tip credit schedules for tipped hospitality employees who qualify as “food service workers” and “service employees.”

Food Service Workers

**Hospitality Industry Tipped Minimum Wage Rate Schedule (Food Service Workers)**
Location	12/31/16	12/31/17	12/31/18	12/31/19	12/31/20	2021
NYC – Large Employers (of 11 or more)	$7.50 Cash $3.50 Tip	$8.65 Cash $4.35 Tip	$10.00 Cash $5.00 Tip
NYC – Small Employers (10 or less)	$7.50 Cash $3.00 Tip	$8.00 Cash $4.00 Tip	$9.00 Cash $4.50 Tip	$10.00 Cash $5.00 Tip
Long Island & Westchester	$7.50 Cash $2.50 Tip	$7.50 Cash $3.50 Tip	$8.00 Cash $4.00 Tip	$8.65 Cash $4.35 Tip	$9.35 Cash $4.65 Tip	$10.00 Cash $5.00 Tip
Remainder of New York State	$7.50 Cash $2.20 Tip	$7.50 Cash $2.90 Tip	$7.50 Cash $3.60 Tip	$7.85 Cash $3.95 Tip	$8.35 Cash $4.15 Tip

Service Employees

**Hospitality Industry Tipped Minimum Wage Rate Schedule (Service Employees)**
Location	12/31/16	12/31/17	12/31/18	12/31/19	12/31/20	2021
NYC – Large Employers (of 11 or more)	$9.15 Cash $1.85 Tip	$10.85 Cash $2.15 Tip	$12.50 Cash $2.50 Tip
NYC – Small Employers (10 or less)	$8.75 Cash $1.75 Tip	$10.00 Cash $2.00 Tip	$11.25 Cash $2.25 Tip	$12.50 Cash $2.50 Tip
Long Island & Westchester	$8.35 Cash $1.65 Tip	$9.15 Cash $1.85 Tip	$10.00 Cash $2.00 Tip	$10.85 Cash $2.15 Tip	$11.65 Cash $2.35 Tip	$12.50 Cash $2.50 Tip
Remainder of New York State	$8.10 Cash $1.60 Tip	$8.65 Cash $1.75 Tip	$9.25 Cash $1.85 Tip	$9.85 Cash $1.95 Tip	$10.40 Cash $2.10 Tip

Fast Food Minimum Wage

Non-exempt employees at some “fast food” restaurants are subject to an alternative minimum wage schedule.

These special New York minimum wage rates only apply to fast food restaurants that are part of a chain with at least 30 restaurants nationally.

**Fast Food Minimum Wage Rate Schedule**
Location	12/31/16	12/31/17	12/31/18	12/31/19	12/31/20	7/1/2021
New York City	$12.00	$13.50	$15.00
Outside of New York City	$10.75	$11.75	$12.75	$13.75	$14.50	$15.00

Note: No tip credit is available for fast food employees.

Overtime Threshold

The salary threshold for New York’s executive and administrative exemptions will also increase on December 31st. These amounts are all higher than the federal Fair Labor Standards Act (FLSA) threshold, which remains at $455/week. But most New York employers (other than governmental entities) have to satisfy the higher New York threshold to ensure full overtime exemption.

There is no salary requirement for New York’s professional exemption. But employers must also satisfy the $455/week FLSA threshold for most professional employees. There is no federal salary requirement to exempt doctors, lawyers, and teachers.

(For more on the FLSA salary threshold, read How Much Should Exempt Employees Get Paid.)

**Executive & Administrative Exemption Weekly Salary Threshold Schedule**
Location	12/31/16	12/31/17	12/31/18	12/31/19	12/31/20	2021
NYC – Large Employers (of 11 or more)	$825.00	$975.00	$1,125.00
NYC – Small Employers (10 or less)	$787.50	$900.00	$1,012.50	$1,125.00
Long Island & Westchester	$750.00	$825.00	$900.00	$975.00	$1,050.00	$1,125.00
Remainder of New York State	$727.50	$780.00	$832.00	$885.00	$937.50	TBD*

Review and Revise Now

New York employers should review their compensation levels and make necessary changes by December 31, 2017. This may mean increasing an employee’s hourly wage or salary or reclassifying exempt employees to non-exempt if they will no longer meet the exemption salary requirement.

To keep up on New York and federal wage and hour requirements and other employment law topics, you can sign up for my email newsletter here!

July 17, 2017

Administrative Exemption – A Quick Guide for New York Employers

Most New York employers are subject to both federal and state minimum wage and overtime requirements. In most cases, this means the employer must pay its employees at least the minimum wage for all hours worked and time-and-a-half for hours over 40 in a week. There are, however, many exceptions to these requirements. This post addresses the administrative exemption under both the FLSA and New York law.

(Click here for A Quick Guide of the New York State and federal Professional exemptions.)

(Click here for A Quick Guide of the New York State and federal Executive exemptions.)

FLSA Administrative Exemption

Despite the name, the “administrative” exemption does not necessarily apply to administrative assistants or certain other employees with “administrative” roles. In fact, it more often applies to director and executive level employees.

Under the FLSA (the federal minimum wage/overtime law), employees may be exempt under the administrative exemption if:

They are compensated on a salary or fee basis of at least $684 per week;
Their primary duty is the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers; and
Their primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.

New York Administrative Exemption

Under New York State law, employees can be exempt from minimum wage and overtime requirements if:

Their primary duties consist of the performance of office or non-manual field work directly related to management policies or general operations of the employer;
They customarily and regularly exercise discretion and independent judgment;
They regularly and directly assists the employer or an executive employee, or perform, under only general supervision, work along technical or specialized lines that requires special training, experience or knowledge; and
They receive a sufficient weekly salary*.

*The weekly salary threshold now depends on geographic location within New York State. For more, see 2023 New York Minimum Wage.

Summary

Some of the areas in which employees eligible for the administrative exemption may work include: finance, accounting, purchasing, marketing, research, human resources, IT, and legal. But not all employees in these areas are eligible for exemption.

The administrative exemptions only apply to certain employees whose actual job situations meet the requirements. Job titles do not automatically determine exemption, nor does the fact that the employee receives a salary.

Employers should periodically review employees’ job duties to determine whether they qualify for exemption.

In addition, employers must consider whether an employee’s salary remains high enough to qualify for the exemption. Under New York law, the threshold is increasing annually, and at higher rates in some parts of the state. Remember that it is not enough to satisfy the federal salary threshold. When the New York threshold is higher, the employee would need to receive the higher salary level to be fully exempt (unless a different New York state exemption applies).

Read about the New York State and FLSA Professional Exemptions here.

Read about the New York State and FLSA Executive Exemptions here.

Check out my Employment Law Dictionary here!