Tag Archives: New York

Is The Minimum Required Salary For Exempt Employees Increasing In Your State In 2019?

While the FLSA minimum salary requirements for “white collar” employees (executive, administrative, or professional employees) is not changing in 2019 (at least not until/unless the Department of Labor announces a new Overtime Rule), there are several states where the minimum salary requirements for exempt employees is increasing in 2019 (December 31, 2018 for New York employers).

These increases (i.e. in Alaska, California, Colorado, Maine, New York, and Oregon) are occurring because the minimum exempt salary rates for these employees (as established under state law) are scheduled to increase in 2018 (December 31st for New York employers).

Under the Fair Labor Standards Act (FLSA), the minimum salary requirements for white collar employees is as follows:

Payment Schedule Minimum Salary
Weekly $455
Bi-Weekly $910
Semi-Monthly $985.83
Monthly $1,971.66
Annual $23,660

The below table sets forth the changes to the minimum salary requirements for exempt employees in these states.  In those instances where the state minimum salary requirements are lower than the above-listed FLSA requirements, the higher salary threshold applies for employers who are subject to FLSA in order for employees to qualify for an exemption under the FLSA.

Alaska
Applicable Law: An individual employed in a bona fide executive, administrative, or professional capacity shall be compensated on a salary or fee basis at a rate of not less than two times the state minimum wage for the first 40 hours of employment each week, exclusive of board or lodging that is furnished by the individual’s employer. Alaska Stat. § 23.10.055(b).

 Since Alaska’s minimum wage is increasing to $9.89 per hour starting January 1, 2019, the minimum salary for exempt employees is increasing as follows:

Payment Schedule 2018 Minimum Salary 2019 Minimum Salary
Weekly $787.20 $791.20
Bi-Weekly $1,574.40 $1,582.40
Semi-Monthly $1,705.60 $1,714.27
Monthly $3,411.20 $3,428.53
Annual $40,768 $41,142.40
California
Applicable Law: Overtime-exempt executive, administrative and professional employees must earn a monthly salary equivalent to at least two times the state minimum wage for full-time employment. IWC Wage Orders.

 Since California’s minimum wage is increasing to $11.00 per hour (for employers with 25 or less employees) and $12.00 per hour (for employers with 26 or more employees) starting January 1, 2019, the minimum salary for exempt employees is increasing as follows:

Small Employers (25 or less employees)
Payment Schedule 2018 Minimum Salary 2019 Minimum Salary
Weekly $840 $880
Bi-Weekly $1,680 $1,760
Semi-Monthly $1,820 $1,906.67
Monthly $3,640 $3, 813.34
Annual $43,680 $45,760
Large Employers (26 or more employees)
Payment Schedule 2018 Minimum Salary 2019 Minimum Salary
Weekly $880 $960
Bi-Weekly $1,760 $1,920
Semi-Monthly $1,906.67 $2,080
Monthly $3,813.34 $4,160
Annual $45,760 $49,920
Colorado**
Applicable Law: Exempt executive/supervisory employees must be a salaried employee earning in excess of the equivalent of the minimum wage for all hours the employee worked in a workweek. Colorado Minimum Wage Order.

Note: The administrative and professional exemptions only require that an employee be a “salaried individual” and does not provide a minimum salary requirement.

 Since Colorado’s minimum wage is increasing to $11.10 per hour starting January 1, 2019, the minimum salary for exempt executive/supervisory employees is increasing as follows:

Payment Schedule 2018 Minimum Salary* 2019 Minimum Salary*
Weekly $408 $444
Bi-Weekly $816 $888
Semi-Monthly $884 $962
Monthly $1,768 $1,924
Annual $21,216 $23,088
* These numbers are based on the employee working 40 hours per week.  If the employee works more than 40 hours per week, the required pay will be greater.
** In order for an executive employee to meet the minimum salary requirement under the FLSA, the employee will need to be paid the FLSA minimum salary.  However, once that employee works over 41 hours in a week, the state minimum wage salary requirement will apply.
Maine
Applicable Law: The minimum salary requirement to qualify for an executive, professional or administrative exemption is 3,000 times the Maine minimum hourly wage or the minimum salary required by the federal Fair Labor Standards Act, whichever is higher. 26 M.R.S 663(3)(K).

 Currently, the state threshold is higher than the FLSA threshold; therefore, the state threshold applies.

Since Maine’s minimum wage is increasing to $11.00 per hour starting January 1, 2019, the minimum salary for exempt employees is increasing as follows:

Payment Schedule 2018 Minimum Salary 2019 Minimum Salary
Weekly $576.92 $634.61
Bi-Weekly $1,153.84 $1, 269.23
Semi-Monthly $1,250 $1,375
Monthly $2,500 $2,750
Annual $30,000 $33,000
New York – INCREASES 12/31/2018
Applicable Law: Exempt executive and administrative employees must be paid at least the minimum salary set forth in the applicable New York Wage Orders.

 Note: There is no salary basis test for professional employees under New York law.

Under the amendments to the New York Wage Orders, the minimum salary for exempt executive and administrative employees is increasing on December 31, 2018 as follows:

New York City (11 or More Employees)
Payment Schedule Current Minimum Salary Minimum Salary On 12/31/18
Weekly $975 $1,125
Bi-Weekly $1,950 $2,250
Semi-Monthly $2,112.50 $2,437.50
Monthly $4,225 $4,875
Annual $50,700 $58,500
New York City (10 or Fewer Employees)
Payment Schedule Current Minimum Salary Minimum Salary On 12/31/18
Weekly $900 $1,012.50
Bi-Weekly $1,800 $2,025
Semi-Monthly $1,950 $2,193.75
Monthly $3,900 $4,387.50
Annual $46,800 $52,650
Nassau, Suffolk & Westchester Counties
Payment Schedule Current Minimum Salary Minimum Salary On 12/31/18
Weekly $825 $900
Bi-Weekly $1,650 $1,800
Semi-Monthly $1,787.50 $1,950
Monthly $3,575 $3,900
Annual $42,900 $46,800
Remainder of State
Payment Schedule Current Minimum Salary Minimum Salary On 12/31/18
Weekly $780 $832
Bi-Weekly $1,560 $1,664
Semi-Monthly $1,690 $1,802.67
Monthly $3,380 $3,605.34
Annual $40,560 $43,264
Oregon*  – INCREASES 7/1/2019
Applicable Law: The minimum salary requirement to qualify for an executive, professional or administrative exemption is the applicable minimum wage multiplied by 2,080 hours per year and then divided by 12 months. Or. Rev. Stat. § 653.010(9).

 Since Oregon’s minimum wage is increasing to $11.00 per hour (for employers in “nonurban counties”), $12.50 per hour (for employers in the Portland metropolitan area), and $11.25 per hour (for the remainder of the state) starting July 1, 2019, the minimum salary for exempt employees will be increasing as follows:

Nonurban Counties (Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties)
Payment Schedule Current Minimum Salary Minimum Salary On 7/1/19
Weekly $420 $440
Bi-Weekly $840 $880
Semi-Monthly $910 $953.34
Monthly $1,820 $1,906.67
Annual $21,840 $22,880
Portland Metropolitan Area
Payment Schedule Current Minimum Salary Minimum Salary On 7/1/19
Weekly $450 $500
Bi-Weekly $900 $1,000
Semi-Monthly $975 $1, 083.34
Monthly $1,950 $2, 166.67
Annual $23,400 $26,000
Remainder of the State
Payment Schedule Current Minimum Salary Minimum Salary On 7/1/19
Weekly $430 $450
Bi-Weekly $860 $900
Semi-Monthly $931.67 $975
Monthly $1,863.33 $1,950
Annual $22,360 $23,400
NOTE:  Currently, only employers in the Portland metropolitan area must pay the state salary in order for to qualify for an executive, professional or administrative exemption.  All other employers in Oregon must pay the FLSA minimum salary in order for to qualify for an executive, professional or administrative exemption.

While not increasing, the minimum salary requirements to qualify for an executive, professional or administrative exemption is higher than the FLSA threshold in the following states:

Connecticut
Applicable Law: The minimum salary requirement to qualify for an executive, professional or administrative exemption is $475 per week. Regs., Conn. State Agencies § 31-60-14.
Payment Schedule Current Minimum Salary
Weekly $475
Bi-Weekly $950
Semi-Monthly $1,029.17
Monthly $2,058.33
Annual $24,700
Iowa
Applicable Law: The minimum salary requirement to qualify as a “high-salaried” executive, professional or administrative employee (and qualify for an exemption from overtime if the duties test is also met) is $500 per week. 875 Iowa Admin. Code 218.1-218.3.
Payment Schedule Current Minimum Salary
Weekly $500
Bi-Weekly $1,000
Semi-Monthly $1,083.34
Monthly $2,166.67
Annual $26,000

Recommendation for Employers

It is recommended that employers in these states verify that their exempt employees are receiving at least the minimum salary requirement to qualify for the exemption.

Also, please remember that meeting the salary requirement is just one element needed to qualify for an exemption from overtime.  The employee in question must also meet the duties test and the salary basis test.

Good News For New York Employers – The Deadline To Provide Employees With Sexual Harassment Training Has Been Extended

On October 1, 2018, the New York State Division of Human Rights and Department of Labor published the final versions of the model anti-harassment training program and a model sexual harassment policy.  See our previous article (NEW GUIDANCE:  New York State Final Sexual Harassment Model Policy & Sexual Harassment Training Programs Released) for information about the final materials.

Employers are required to adopt and provide a copy of their sexual harassment prevention policy to all employees by October 9, 2018.  In addition, employers are required to display the new sexual harassment prevention policy poster in a prominent location in the workplace no later than October 9, 2018.

It is recommended that New York employers take immediate steps to comply with these new requirements.

The good news for employers, the deadlines to provide sexual harassment training have changed.

With respect to providing sexual harassment training to new hires, the final guidance materials remove the proposed  30-day deadline by which newly-hired employees must complete their first mandatory anti-harassment training.  Instead, there is not any set deadline and the State “encourages training of of new hires as soon as possible.”  (NOTE:  New York City employers will be required to train new hires in New York City within the first 90 days of employment).

With respect to providing sexual harassment training to existing employees, the final guidance materials postpone the deadline by which all employees in New York State must complete their first annual mandatory anti-harassment training to October 9, 2019.

NEW GUIDANCE: New York State Final Sexual Harassment Model Policy & Sexual Harassment Training Programs Released

As reported earlier (NEW GUIDANCE: New York State Publishes DRAFT Model Sexual Harassment Policy and Training), in late August, the New York State Division of Human Rights and Department of Labor published draft versions of model anti-harassment training program and a model sexual harassment policy.   The publication of these materials was in compliance with these agencies’ obligations under New York State’s new anti-harassment law. As a reminder, this law:

  • Prohibits employers from using a mandatory arbitration provision in an employment contract in relation to sexual harassment;
  • Requires that nondisclosure agreements can only be used when the condition of confidentiality is the explicit preference of the victim; and
  • Amends the Human Rights Law to protect contractors, subcontractors, vendors, consultants, or others providing services in the workplace from sexual harassment in the workplace.
  • Establishes minimum standards for sexual harassment prevention policies and sexual harassment training. All employers operating in New York State must either adopt and use the State’s model policy and training as-is or use the models as a basis to establish their own policy and training.

Continue reading NEW GUIDANCE: New York State Final Sexual Harassment Model Policy & Sexual Harassment Training Programs Released

NEW LAW – New York Requires Human Trafficking Informational Cards Be Posted In Hotels

New York State hotel operators are you ready for the new posting requirement?

Starting October 14, 2018, all hotels in New York with at least five rooms will be required to post human trafficking “informational cards” throughout each hotel’s premises.

There are three options for the type of card that can be posted:

  1. The hotel can create its own informational card
  2. The hotel can use a card created by the New York State Office of Temporary and Disability Assistance (OTDA) in conjunction with the New York State Interagency Task Force on Human Trafficking (which is not yet available)
  3. Use a card created by the United States Department of Homeland Security

Should a hotel operator choose to create its own card, it must contain the following:

  • the National Human Trafficking Hotline number (1-888-373-7888) and
  • only information regarding services for human trafficking victims.

There are no other specific requirements for the content of these cards.  In addition, there are not any specific size requirements for the cards.

Hotel operators are required to place the cards in the hotel

  • in plain view and in a conspicuous location in public rest rooms,
  • in guest rooms, and
  • near the public entrance to the hotel (or another conspicuous location in clear view of the public and its employees where similar information is customarily displayed)

Aside from the above location requirement, there is no requirement that the cards to be affixed in any particular location; therefore, a hotel may choose to stack informational cards in the required locations.

NEW GUIDANCE: New York State Publishes DRAFT Model Sexual Harassment Policy and Training

As reported in a previous article (New York State and New York City Amend Sexual Harassment Laws), earlier this year, New York State passed a stringent new sexual harassment law.

As a part of this law, the New York State Division of Human Rights and Department of Labor were required to publish a model anti-harassment training program and a model sexual harassment policy.  Once available, employers can choose whether to adopt the models prepared by the state or develop their own, so long as their policies and training meet or exceed the standards contained in the models.

On August 23, 2018, New York State released the following new materials designed to help New York employers comply with the new law:

Continue reading NEW GUIDANCE: New York State Publishes DRAFT Model Sexual Harassment Policy and Training

NEW POSTER:  NYC Publishes New Sexual Harassment Poster

Earlier this year, New York City enacted new laws requiring NYC employers to educate their employees about workplace harassment and sexual harassment.

Under the new law, the NYC Commission on Human Rights is required to provide employers with certain tools to help NYC employers comply with the new law.  These tools include:

  • Creating a workplace poster addressing the new law (in both English and Spanish)
  • Develop a model anti-harassment policy
  • Develop a model standard complaint form
  • Develop a model anti-harassment training program.

Workplace Poster

The NYC Commission on Human Rights recently published the English version of the new workplace poster (the Spanish version is still forthcoming).  Starting September 6, 2018, all NYC employers are required to display this poster (and the Spanish version) in a prominent location in the workplace.

We recommend that employers post this poster as soon as possible.

Workplace Notice

In addition to the poster, the NYC Commission on Human Rights has also released a “Stop Sexual Harassment Act Factsheet”.  This factsheet is intended to help employers meet the requirement of providing all employees (and new hires) with notice of the anti-harassment law.  Employers may either distribute this factsheet to all existing employees and new hires and/or they can incorporate the information in the factsheet into an anti-harassment policy in the employee handbook or a free-standing policy.

We recommend that employers provide this factsheet to all current employees and new hires. Continue reading NEW POSTER:  NYC Publishes New Sexual Harassment Poster

Is The Minimum Pay Required For Commissioned Employees To Qualify For An Overtime Exemption Increasing In Your State In 2018?

While the minimum pay required for commissioned employees to qualify for an overtime exemption is not changing in 2018, there are several states where the minimum pay requirements for a “commissioned employee overtime exemption” are increasing.

These increases (i.e. in California, Colorado, Minnesota, Oregon, Washington, and Washington DC) are occurring because the pay an inside or commissioned salesperson must receive to qualify for the inside or “commissioned” sales exemption (as established under state law) are scheduled to increase in 2018 (December 31st for New York employers).

Under the Fair Labor Standards Act (FLSA), in order for a commissioned salesperson to qualify for the FLSA’s 7(i) overtime exception (Commissioned Salesperson Exemption), the following three conditions must be met:

  1. The employee must be employed by a retail or service establishment, and
  2. The employee’s regular rate of pay must exceed one and one-half times the applicable minimum wage for every hour worked in a workweek in which overtime hours are worked, and
  3. More than half the employee’s total earnings in a representative period must consist of commissions.

Unless all three conditions are met, the Commissioned Salesperson Exemption is not applicable, and overtime premium pay must be paid for all hours worked over 40 in a workweek at time and one-half the regular rate of pay.

The below table sets forth the changes to the minimum salary requirements for exempt employees in these states.  In those instances where the state minimum salary requirements are lower than the above-listed FLSA requirements, the higher salary threshold applies for employers who are subject to FLSA in order for employees to qualify for an exemption under the FLSA. Continue reading Is The Minimum Pay Required For Commissioned Employees To Qualify For An Overtime Exemption Increasing In Your State In 2018?

Check to See if the Minimum Required Salary For Exempt Employees is Increasing In Your State

While the minimum salary requirements for “white collar” employees (executive, administrative, or professional employees) is not changing in 2018 (at least not until/unless the Department of Labor announces a new Overtime Rule), there are several states where the minimum salary requirements for exempt employees is increasing in 2018 (December 31st for New York employers).

These increases (i.e. in Alaska, California, Colorado, Maine, New York, and Oregon) are occurring because the minimum exempt salary rates for these employees (as established under state law) are scheduled to increase in 2018 (December 31st for New York employers).

Under the Fair Labor Standards Act (FLSA), the minimum salary requirements for white collar employees is as follows:

Payment Schedule Minimum Salary
Weekly $455
Bi-Weekly $910
Semi-Monthly $985.83
Monthly $1,971.66
Annual $23,660

Continue reading Check to See if the Minimum Required Salary For Exempt Employees is Increasing In Your State

NEW FORM – New York Releases Model Paid Family Leave Policy and Paid Family Leave Statement of Rights

As all New York employers are undoubtedly aware, the New York State Paid Family Leave Law goes into effect on January 1, 2018.

In addition to a requirement that employers provide eligible employees with Paid Family Leave (see New York Employers – Are You Ready for Paid Family Leave? for an explanation of the New York State Paid Family Leave Law), employers are also required to give all of their employees information regarding their Paid Family Leave rights.  This information may be provided in an Employee Handbook or separate materials distributed to employees.  To assist employers in developing these materials, the New York State Workers’ Compensation Board has released a manual (entitled “Model Language for Employees Materials”) that identifies the topics that must be included in employee materials.  The manual also provides model language that employers can incorporate in such materials.

Employers are also required to provide an employee with a “Statement of Rights” whenever an employee takes Paid Family Leave and when an employee takes time off from work for a Paid Family Leave qualifying event but has not requested paid family leave.  To help employers meet this obligation, the New York State Workers’ Compensation Board has released a Statement of Rights for Paid Family Leave that employers can provide to an employee to meet this obligation.

It is recommended that all New York employers review these materials prior to the start of the new year.

New York Employers — Don’t Forget About These Other New Year’s Eve Wage Increases …

As New York employers are undoubtedly aware, New York’s minimum wage is increasing on December 31, 2017 as follows:

Size/Location of Employer Minimum Wage as of 12/31/17
“Upstate” employers (excluding fast food employees) $10.40 per hour
“Downstate” employers (excluding fast food employees) $11.00 per hour
“Small” NYC employers (excluding fast food employees) $12.00 per hour
Fast food employees outside NYC $11.75 per hour
“Large” NYC employers (excluding fast food employees) $13.00 per hour
Fast food employees inside NYC $13.50 per hour
·         “Upstate” = employers in all counties “upstate” from the greater NYC area

·         “Downstate” = employers in Nassau, Suffolk, and Westchester Counties

·         “Small” NYC employers = employers with 10 or fewer employees

·         “Large” NYC employers = employers with 11 or more employees

 

However, New York employers may be surprised to learn about the other types of wages that are accompanying the increase in minimum wage – specifically:

  • An increase to the salary threshold for exempt employees; and
  • An adjustment to the amounts employers can deduct from employees’ wages for items such as tip credits, uniform allowances and meals

New Salary Threshold for Exempt Employees

Effective December 31, 2017, the salary threshold for exempt employees will increase as follows:

Size/Location of Employer Salary Threshold as of 12/31/17
“Upstate” employers $780 per week
“Downstate” employers $825 per week
“Small” NYC employers $900 per week
“Large” NYC employers $975 per week

 

Adjustment to Permissible Deductions

Under the New York wage orders (those applicable to hospitality employers, employers in “miscellaneous industries,” and employers in the “building service industry”), employers are permitted to make deduct from employees’ wages for items such as tip credits, uniform allowances and meals.  Starting December 31, 2017, those amounts have been adjusted dependent on employer location and size.  It is recommended that all employers review these summaries to determine how much they can deduct for a uniform allowance and claim as a meal, lodging and tip credits.