Joshua Zuckerberg

In the days leading up to December 1, 2016, employers across the United States prepared for new federal overtime rules to go into effect that would increase the salary threshold for exempt employees. It was, therefore, surprising when, days before the new rules were set to take effect, a Texas district court issued a nationwide injunction blocking them.

While some employers may have been relieved by the court’s intervention, several states, including New York, have enacted their own overtime and minimum wage regulations aimed at safeguarding employees.

“Although the Trump administration may in fact roll back federal protections for workers, many states have expressed a real intent to fill the void and make sure that labor protections continue, even in the absence of federal action,” wrote Pryor Cashman Labor + Employment Partner Joshua Zuckerberg and Associate LaKeisha Caton in a recent article for Law360.

New York state, for instance, independently raised the salary thresholds (or “white collar exemptions”) beyond what was originally planned at the federal level, and adopted legislation increasing the minimum wage on an incremental basis until it reaches $15 per hour statewide. 

Additionally, New York now limits the ability of employers to restrict employee discussion about their wages, requiring – among other things – that “such [restrictions] must be justified without reference to the content of the regulated speech, narrowly tailored to serve a significant interest, and leave open ample alternative channels for the communication of information.”

Increased Salary Thresholds in New York State

As of December 31, 2016, the salary thresholds increased to:

• $825 per week ($42,900 annually) for New York City employers of 11 or more employees;
• $787.50 per week ($40,950 annually) for New York City employers of 10 or fewer employees;
• $750 per week ($39,000 annually) for Long Island and Westchester County; and
• $727.50 per week ($37,830 annually) for the rest of New York state. 

“Notably, for the first time ever, there are different salary thresholds throughout the state of New York depending on the employer’s size and location,” Zuckerberg and Caton said.

The salary thresholds will continue to increase annually for the next five years. Exempt professionals under the Fair Labor Standards Act will be unaffected by the new salary thresholds, as no threshold currently exists for these workers under New York law.

Enforcing the New Minimum Wage Regulations

On December 31, 2016, New York state’s minimum wage underwent the first series of increases that will culminate with the minimum wage reaching $15 per hour in 2021.

And to ensure that the new minimum wage is implemented by New York employers, Governor Andrew Cuomo recently launched the Minimum Wage Enforcement and Outreach Unit, a first- of-its-kind taskforce, consisting of approximately 200 investigators from multiple state agencies, charged with enforcing the new wage regulations.

Investigators will be responsible for:

• Educating employees and businesses on the specific requirements of the new wage regulations;
• Responding to complaints by workers;
• Conducting proactive investigations;
• Auditing an employer’s workforce and the wages paid;
• Offering minimum wage regulation training sessions and webinars to help businesses identify pay rates for their employees; and
• Creating and distributing promotional and educational materials to workers and businesses to help them understand their rights and responsibilities under the new law.

For more information on New York’s new minimum wage and overtime regulations, read Zuckerberg and Caton’s full article in Law360.

More About Pryor Cashman’s Labor + Employment Practice

Pryor Cashman’s Labor + Employment attorneys help clients develop proactive measures to prevent conflicts and strive to resolve issues through mediation before relations deteriorate irreparably. Should litigation prove inevitable, we quickly get to the root of the dispute, providing zealous advocacy and a swift resolution.

Our group represents organizations and individuals across a variety of industries, including entertainment, hotel and hospitality, food and beverage, fashion, manufacturing and financial services. We advise clients on day-to-day business operations, human resources administration and management, executive compensation, employment agreements, ERISA and employee benefits, discrimination and sexual harassment claims, wage and hour matters, wrongful discharge cases and workplace misconduct charges, among many other issues.

To learn more about our work in this area, please visit our Labor + Employment practice page.