Effective March 13, 2024, the salary threshold for certain exemptions under Article 6 of the New York Labor Law (NYLL) will increase from $900 to $1,300 per week. By way of background, Article 6 of the NYLL sets forth employer obligations with respect to pay practices in New York, many of which afford certain wage protections to employees. Currently, employers are exempt from the following requirements with respect to individuals employed in a bona fide executive, administrative, or professional capacity whose earnings exceed $900 per week:
- Paying clerical or other workers “not less frequently than semi-monthly” (NYLL §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).
Therefore, beginning March 13, 2024, employers will be exempt from the above requirements with respect to individuals employed in a bona fide executive, administrative, or professional capacity whose earnings exceed $1,300 per week.
It is critical to note that the modified salary threshold for the above wage protections is separate and distinct from those pertaining to minimum wage and overtime exemptions under the NYLL, which remain at their current levels, i.e., $1,125 per week in New York City, Nassau, Suffolk, and Westchester, and $1,064.25 per week in the rest of the state.
Employers should review their current payroll practices and make any necessary updates to account for these changes (e.g., increase employee compensation to meet the new threshold or ensure that employees below the threshold are no longer exempt from the above-detailed employer obligations).