The U.S. workforce continues to adjust following the unprecedented impacts of the COVID-19 pandemic. By the end of the year, all New York State employers with employees working outside of New York City should be on alert as minimum wage and overtime-exempt salary levels will rise.

The change applies to businesses of all sizes. The following data was announced in a report from the New York State Division of Budget on September 22, 2021.

As of December 31, 2021, both the New York State minimum wage rates and exempt salary levels for employees working outside of New York City will increase as follows:

• Minimum wage for non-fast food workers
  • Nassau, Suffolk, and Westchester counties: $15.00 per hour
  • Remainder of the state: $13.50 per hour

• Tipped employees in the hospitality industry
  • Nassau, Suffolk, and Westchester counties:
    • Food Service: $10.00 cash with $5.00 tip credit per hour
    • Service Employees: $12.50 cash with $2.50 tip credit per hour (NOTE: $3.25 tip threshold for non-resort hotel employees; $8.40 tip threshold for resort hotel employees)

• Minimum salary levels for overtime-exempt executive and administrative employees
  • Nassau, Suffolk, and Westchester counties: $1,125 per week ($58,500 annually)
• Remainder of the state: $990 per week ($51,480 annually)

Please be sure to carefully assess the current annual salaries of your overtime-exempt employees to assess whether they are, or will remain, classified correctly. Your HRBP can assist you with any questions you may have in this matter.