NYDOL could increase overtime threshold beyond new FLSA rules
- If New York’s Department of Labor has its way, salaries for exempt employees could go higher than the increases the new overtime regulations have set, according to a report from Littler. NYDOL’s proposal raises the salary minimum thresholds that make workers ineligible for overtime, substantially increasing their earnings in some cases
- Minimum thresholds will differ based on a company’s size and location. This means that exempt salaries under the NYDOL’s Wage Orders will vary across the state. For exempt employees, those classified as executive or administrative, at large companies, minimum salaries are projected to reach $1,125 a week by 2019, exceeding the new FLSA exemption by $200. For smaller companies with 10 or fewer employees, minimum salaries could reach $975 by 2019. Minimum thresholds for white-collar workers in upstate New York won’t exceed those set by the overtime rule.
- The hospitality industry has yearly wage order increases for uniform maintenance. Increased allowances for uniform maintenance begin Dec. 31, and are based on company size and location, as well as the total number of hours an employee works a week. The new overtime rule under FLSA becomes effective on Dec.1, 2016.
Although these minimum thresholds are specific to New York state, they’re one example of how the new overtime rule is affecting the workplace. Employers have filed emergency injunctions and summary judgments to stop the newest FLSA regulation before its Dec. 1 enactment, but the consensus among industry observers seems to be that employers should prepare as if the law will be successfully enacted.
Companies likely to be affected by the salary threshold proposal should start reviewing these projected increases before deciding on raises or job reclassifications. Organizations across the country should note the examples of competitors who have already acted to comply successfully with the changes.