New York Raises Overtime Salary Threshold

New York Raises Overtime Salary Threshold

The fate of the US Labor Department’s controversial new overtime rule, which would raise the salary threshold at which employees are exempt from overtime pay from $23,660 to $47,476, remains uncertain after a federal judge blocked it from coming into effect in December. In New York State, however, which has an overtime rule of its own, the overtime salary threshold increased at the turn of the new year, Rosa Goldensohn reports at Crain’s:

New York employers had been required to pay overtime to employees making up to $675 a week, or roughly $35,000 a year, rules that do not apply to farm laborers, babysitters and many white-collar workers, among others. But on Dec. 28—and with very little fanfare—the state Department of Labor hiked that ceiling to $787.50 a week, or around $40,000 a year, for businesses with 10 or fewer workers, and $825 weekly or $42,000 annually for those with more than 10, a new threshold that went into effect Dec. 31.

The change in the state rule drew little attention because it was expected to be overshadowed by a change in the federal overtime threshold[.]

SHRM’s Lisa Nagele-Piazza breaks down what the new rules, which vary based on geography and business size, mean for New York employers. The Business Council of New York State tells Goldensohn that the Texas court decision enjoining the federal regulation could open the way to a legal challenge of the state’s as well. Alternatively, New York and other “blue states” may choose to push forward with their own overtime rules, so along with rising wage floors, this could be another example of labor regulation going local.