Welcome to 2024! On behalf of the entire HR Compliance Experts team, I wish you a year filled with good health and prosperity.
Let’s jump right in and look at what 2024 brings by way of new and updated regulations. [Are you really doing this? At least give the people who, for some reason, read your posts time to figure out what day of the week it is.] If you’re a new Frankly Speaking reader, the commentary in [brackets] is channeled from my snarky alter ego. [Snarky is so 2023; you need to find something new. Brilliantly witty seems more fitting.]
NY State Minimum Wage & Salary Threshold Increases
I’m sure most employers will agree that there’s nothing like starting the year with an increase in the minimum wage and minimum salary requirements! Well, several governors were happy to oblige.
In the “nothing like waiting until the last minute” category, Gov. Hochul and the NY State Department of Labor once again took first place. [You expected something different?] On December 27, 2023, the state issued a notice in the NY State Register that the NY DOL had adopted its previously proposed wage regulations. Effective January 1, 2024, the minimum hourly wage rates and minimum salary thresholds increased as follows:
| Area | Minimum Hourly Wage | Minimum Weekly & Annual Salary |
|---|---|---|
| NY City and Nassau, Suffolk, and Westchester Counties | $16.00 | $1,200.00 ($62,400.00) |
| Remainder of NY State | $15.00 | $1,124.20 ($58,458.40) |
The 2024 NY State Budget, and new NY DOL regulations, also include automatic wage increases for 2025 and 2026:
| Effective Date | Area | Minimum Hourly Wage | Minimum Weekly & Annual Salary |
|---|---|---|---|
| 01/01/2025 | NY City and Nassau, Suffolk, and Westchester Counties | $16.50 | $1,237.50 ($64,350.00) |
| 01/01/2025 | Remainder of NY State | $15.50 | $1,161.65 ($60,405.80) |
| 01/01/2026 | NY City and Nassau, Suffolk, and Westchester Counties | $17.00 | $1,275.00 ($66,300.00) |
| 01/01/2026 | Remainder of NY State | $16.00 | $1,199.10 ($62,353.20) |
Then, beginning on January 1, 2027, the NY minimum wage will be based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (“CPI-W”) for the Northeast Region. While this plan doesn’t necessarily guarantee an annual increase to the state’s minimum wage and salary thresholds in 2027 and beyond, [Right, and I’ve got a great deal for you on a bridge in Brooklyn!] the circumstances under which the DOL would temporarily suspend an automatic increase are very limited. The good news is [I can’t wait for this one!] the DOL will post the adjusted rate no later than October 1 each year, ensuring employers have at least three months to prepare for the new minimum wage to take effect.
Employers located outside NY State should note that these minimum hourly wage rates and minimum salary thresholds apply to all employees working in the state, including employees working “remotely” from their homes or other locations within NY State.
It’s also a good time for employers to review their compliance with the overtime exemption regulations – including the salary basis, minimum salary, and duties requirements. The minimum salary thresholds above apply to employees who qualify under the state’s Executive and Administrative exemptions. [Excuse me, Mr. Compliance Expert, but what about employees who qualify under the Professional exemption?] What many employers don’t realize is that NY does not have a state-specific Professional exemption for employees “employed in a bona fide professional capacity.” Therefore, employees in NY State who qualify under the federal Professional exemption are subject to the federal salary threshold, currently $684.00 per week ($35,568.00 annualized).
Employers with employees classified as exempt under the federal Professional exemption should know that the federal DOL has issued a proposed rule to increase the minimum weekly salary for the Executive, Administrative, and Professional exemptions to $1,059.00 per week ($55,068.00 annualized).
In addition, although the NY State minimum salary threshold for the Executive and Administrative exemptions is currently higher than the federal DOL’s proposed $1,059.00 per week, the state’s minimum salary threshold for the executive and administrative exemptions is “inclusive of board, lodging, or other allowances and facilities.” Conversely, the federal minimum salary threshold must be “exclusive of board, lodging, or other facilities.” So, if the proposed federal rule is adopted, employers that use housing or meal allowances to meet the NY State minimum salary threshold will need to remove the housing or meal allowances from the calculation to ensure they also meet the new federal minimum salary threshold. [I have no idea what you’re talking about, but OK.]
More States Increased Minimum Wage on Jan 1
New York is not the only state that increased its minimum wage on January 1, 2024. According to the National Employment Law Project, 22 states (including NY) hiked their minimum hourly wage on New Year’s Day, with six that reached or exceeded $15.00 per hour:
| AK $11.73 | AZ $14.35 | CA $16.00 | CO $14.42 |
| CT $15.69 | DE $13.25 | HI $14.00 | IL $14.00 |
| ME $14.15 | MD $15.00 | MI $10.33 | MN $8.85 sm./$10.85 lg. |
| MO $12.30 | MT $10.30 | NE $12.00 | NJ* $15.13 |
| NY** $15.00/$16.00 | OH $10.45 | RI $14.00 | SD $11.20 |
| VT $13.67 | WA $16.28 |
** NY Home Care Aide minimum wage wage increased to $17.55/$18.55.
The minimum hourly wage rate was also increased in 43 cities and counties in eight states: AZ (2), CA (28), CO (3), ME (2), MD (2), MN (2), NM (1), and WA (3) on January 1, 2024, with several others set to follow during the year. Of the 43 municipalities, 41 reached or exceeded $15.00 per hour, with 26 of the 41 reaching or exceeding $17.00 per hour. [Stop! You’re making my head hurt!]
We’re off to a busy start, with 2024 sure to be another active year for new and updated employment-related legislation, regulations, and even a Supreme Court decision or two. Through it all, my team and I will be here to assist you with all your HR and regulatory compliance needs.
Please email us at HRAnswers@hrcexperts.com for more information on the new minimum wage and salary threshold rates, or any other HR compliance-related topic. Remember, when you only have one chance to get it right, you need HR Compliance Experts. [Very punny. I’ll bet you came up with that.]
If you have questions about compliance with local, state, and federal regulations and mandates, or want information on any of the services HR Compliance Experts offers, call us at 585-565-3900 or email HRAnswers@hrcexperts.com.
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Posted by Frank Cania, president of HR Compliance Experts LLC.
© 2024 HR Compliance Experts LLC
Disclaimer: This content is for informational purposes only, does not constitute a legal opinion, and is not legal advice. The facts of each situation should be considered and analyzed individually. Therefore, you should always consult with competent employment counsel regarding any issues discussed here.
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