EmploymentThe new year’s ball will be dropping before we know it. As we finish out 2025, New York employers must be “checking their lists” to prepare for changes to employment laws that will take effect in the new year.
Increases to New York Minimum Wage and Minimum Salaries
–Non-Exempt Employees
Starting on January 1, 2026, the minimum wage will increase by fifty cents, to $17.00 per hour in New York City, Westchester, and Long Island (“downstate”), and to $16.00 per hour in the rest of the state. This increase also means that overtime rates will rise accordingly for non-exempt employees, to $25.50 for every hour worked over 40 in a week for those working downstate, and to $24.00 per overtime hour for those working in the rest of the state.
Employers should ensure that their payroll providers timely update pay rates to appropriately reflect these changes. Employees in the hospitality industry must also receive an updated Notice of Pay, pursuant to the New York Wage Theft Prevention Act. For employees in other industries, the updated pay rates may simply be noted on the employee’s pay stubs.
–Exempt Employees
In addition, the minimum salary for exempt employees, i.e., those whose pay and job duties exempt them from earning overtime, will increase in the new year for those working downstate to $1,275.00 per week ($66,300.00 per year) and for employees in the rest of the state will increase to $1,199.10 per week ($62,353.20 per year). If an exempt employee’s salary is below these rates, the employer must either increase the minimum base salary to meet the exempt minimum salary or convert the employee to non-exempt status.
