Whenever discussing the law governing the payment of overtime to non-exempt employees, we must also discuss federal and state laws. Nowhere is this more important than when examining the minimum salary to be paid to various categories of employees for them to be exempt from overtime pay. The minimum annual salary administrative and executive employees are to be paid to be overtime exempt in the New York City area is $58,500 and $51,480 in the remainder of the state, which is greater than the current federal minimum of $35,568. Because New York has no separate minimum salary for professionals the $35,568 federal minimum rate governs. Accordingly, word from Washington D.C. is that the federal minimum salary for exemptions may change soon but it will not affect New York administrative and executive employees unless it rises above $51,480 (or above $58,500 for NYC area employees), which is not expected, any new federal minimum salary will apply to professional employees.
Separately, employees must also have the applicable duties of the exemption category to be exempt from overtime. While less likely, it is possible that the duties tests will be modified. Citing the original intent of the overtime exemption rules, those pressing for modification of the exempt duties tests believe there has been too much emphasis on the minimum salaries. As always, employers should monitor the salaries and duties of their exempt employees while considering current law.
If you have any questions regarding this article, please contact the Underberg & Kessler attorney who regularly handles your legal matters or Paul F. Keneally, the author of this piece, here, or at (585) 258-2882.
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