Minimum Wage Increased in New York and New Jersey; Salary Basis Requirements Increased in New York
All employers operating in either New York or New Jersey should take note that — effective immediately — the minimum hourly wage for non-exempt employees has increased. In New York, the minimum wage is now $8.00 per hour. In New Jersey, the minimum wage is now $8.25 per hour. In these states, employers must pay at least the new minimum hourly wage to non-exempt employees for each hour worked. Other than raising the hourly minimum wage, the changes do not alter the way that overtime is calculated.
Employers operating in New York should further note that the weekly salary needed to satisfy the salary basis requirements of the administrative and executive overtime exemptions has also increased. Pursuant to recently amended Minimum Wage Orders issued by the New York State Department of Labor, employees classified as exempt from overtime under either the executive or administrative overtime exemptions must be paid at least $600 per week (up from $ 543.75 per week), inclusive of board, lodging, and other allowances and facilities. This increase in weekly salary is effective immediately and employees paid less than $600 per week will no longer meet the salary basis requirements under New York law. Consequently, such employees would no longer be exempt from overtime or minimum wage under the administrative or executive exemptions.
Given these developments, now is a good time for all employers with operations in New York or New Jersey to communicate with experienced wage and hour counsel regarding strategies to avoid litigation and to ensure compliance with applicable wage and hour laws. If you have any questions, please feel free to contact any of the attorneys in the Gibbons Employment & Labor Law Department.