NY and CA Salary Threshold Exemptions

NEW YORK

Despite the recent court decision to delay the implementation of the new national FLSA overtime rule, New York state employers may still have to comply with the state’s salary threshold increase if proposed changes are adopted by the NY Department of Labor. Specific requirements will depend on the number of employees and the “geographic location within New York State”. If adopted, the changes will go into effect on December 31, 2016. Employers should review the proposed changes and evaluate the potential costs of paying employees overtime if their current salary does not meet the new increased salary threshold.

Please click here to learn more about the proposed new salary thresholds.

CALIFORNIA

As the California minimum wage increases on January 1st, CA employers will also have to comply with the state’s increased exempt salary threshold. Under California law, in order for employees to be classified as exempt, they must earn at least double the minimum wage for full time employment, meaning the salary threshold for exempt employees will increase from $41,600 annually to $43,680 annually as of 1/1/2017. The threshold and minimum wage will continue to increase annually until 2022. In addition to preparing for these changes, employers should continue to monitor potential changes to the federal overtime rule. While the new rule is currently on hold, if it does go into effect, the federal threshold will be greater than the California state threshold, and employers will need to adjust accordingly.

For more information, please click here.