Effective January 1, 2024, the New York State salary threshold for exempt executive and administrative employees is as follows:

• New York City, Westchester, Nassau and Suffolk Counties

$1,200.00/week ($62,400.00/year)

• The Rest of New York State

$1,124.20/week ($58,458.40/year)

Employers will have to increase the salary of executive and administrative employees accordingly to continue to treat them as exempt from overtime under New York State law.

Note, professional employees are not subject to the New York State salary threshold requirements, but these employees remain subject to the federal exempt salary threshold (currently $684.00/week ($35,568.00/year)). 

Different Salary Threshold for Other Exceptions Under the New York Labor Law – Effective March 13, 2024

In addition to establishing a salary threshold for the executive and administrative employee overtime exemption, the New York Labor Law establishes a separate salary threshold for employees to be excluded from Article 6 of the New York Labor Law, which governs specific pay practices.  Specifically, as of March 13, 2024, executive, administrative, and professional employees who meet this separate salary threshold of $1,300 per week are excused from the following New York Labor Law requirements:

• Paying clerical and other workers “not less frequently than semi-monthly” § 191(d).
•  Obtaining the advance written consent of employees before paying wages via direct deposit (NYLL § 192).
• The employer being guilty of a misdemeanor if it fails to provide benefits or wage supplements within 30 days after they are due (NYLL § 198(c)).

Based on these two laws, an employee may be considered exempt for overtime purposes but still subject to the other Article 6 requirements.

Employers should review the salaries of exempt administrative and executive employee to ensure they meet the 2024 threshold, and should review the payroll practices regarding those exempt employees making less than $1,300 a week to ensure they are in compliance with the requirements of Article 6.

Should you have any questions or need assistance with submission process, please contact Ali Law Group.