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Our attorneys stay on top of changes in legislation, agency regulations, case law, and industry trends—then craft timely legal alerts to keep clients up to date on legal developments important to their business.

December 29, 2016

New York State Department of Labor's Proposed Salary Basis Increases Become Final

On December 28, 2016, the New York State Department of Labor ("NYSDOL") adopted its previously proposed amendments to the administrative and executive exemption salary basis thresholds. The NYSDOL's adoption comes just three days before the amendments take effect on December 31, 2016. The final version of the amendments made no changes to the proposed version. As we previously reported in our November 23, 2016 alert, the new salary basis thresholds vary based on employer size and geographic region, as follows:

New York City Large Employers (11 or more employees)
$825.00 per week on and after December 31, 2016
$975.00 per week on and after December 31, 2017
$1,125.00 per week on and after December 31, 2018

New York City Small Employers (10 or fewer employees)
$787.50 per week on and after December 31, 2016
$900.00 per week on and after December 31, 2017
$1,012.50 per week on and after December 31, 2018
$1,125.00 per week on and after December 31, 2019

Remainder of Downstate (Nassau, Suffolk and Westchester Counties)
$750.00 per week on and after December 31, 2016
$825.00 per week on and after December 31, 2017
$900.00 per week on and after December 31, 2018
$975.00 per week on and after December 31, 2019
$1,050.00 per week on and after December 31, 2020
$1,125.00 per week on and after December 31, 2021

Remainder of State (outside of New York City, Nassau, Suffolk and Westchester Counties)
$727.50 per week on and after December 31, 2016
$780.00 per week on and after December 31, 2017
$832.00 per week on and after December 31, 2018
$885.00 per week on and after December 31, 2019
$937.50 per week on and after December 31, 2020

On the other hand, the United States Department of Labor's proposed rule increasing the federal salary basis thresholds remains temporarily blocked pursuant to the Texas federal court's November 22, 2016 decision and it is still unknown if, and when, the federal increases will take effect. However, separate and apart from the federal rules, New York employers will now need to ensure that their practices are in compliance with the NYSDOL's final amendments by December 31, 2016.


If you have any questions about compliance, or are unsure how this new enforcement initiative may impact your business, please contact the Labor & Employment attorney at Barclay Damon with whom you normally work or any attorney in our Labor & Employment Practice Area.

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