Understanding Overtime Laws in New York
Are you unsure about your entitlement to overtime pay as a salaried employee in New York? Both federal and state laws have specific guidelines about overtime, and itâs crucial to understand your rights. Letâs delve into the overtime laws in New York and what it means for you.
Overtime Laws in New York
Under the Fair Labor Standards Act (FLSA) and New York State Labor Law, employees are generally entitled to a minimum wage and overtime pay at a rate of 1½ times their regular pay for all hours worked over 40 in a single workweek. While the FLSA provides the baseline for these rules, New York has its own set of regulations, which can be more favorable to employees.
Salaried Employees and Overtime Pay
Itâs a common misconception that salaried employees are automatically exempt from overtime. However, this isnât always the case. New York law requires that certain salaried employees be paid overtime even if they are considered exempt under federal law. If youâre salaried but earning below the required threshold, you might still be eligible for overtime.
Exemptions from Overtime Laws
Both the FLSA and New York State Labor Law provide exemptions for specific types of employees, typically those in âwhite collarâ roles such as executive, administrative, professional, and outside sales positions. To qualify for these exemptions, employers must meet the âsalary basis test,â ensuring the employee earns a minimum amount.
Federal minimum: $684 per week or $35,568 per year.
New York minimum: Varies by location, with higher thresholds in New York City.
Occupations Exempt from Overtime
Some jobs are exempt from both federal and state overtime laws, including:
Certain volunteers and interns
Employees of religious or charitable organizations
Salary Thresholds for Overtime Exemptions
In New York, the minimum salary thresholds for overtime exemptions vary:
New York City: $1,125 per week or $58,500 per year
Nassau, Suffolk, and Westchester counties: $1,050 per week or $54,600 per year (increasing to $1,125 after December 31, 2021)
Elsewhere in New York: $937.50 per week or $48,750 per year
If your salary falls below these thresholds, you may be entitled to overtime pay, regardless of your exempt status.
Bonus and Incentive Payments
Recent changes by the Department of Labor allow certain bonuses and incentive payments to count towards meeting the salary basis test. However, this is capped at 10% of the required salary threshold. For example, in New York City, only $112.50 of a $2,000 commission can count towards the weekly salary for overtime exemption purposes.
If an employee earns $950 per week plus a $2,000 commission, only $112.50 of the commission counts towards the weekly salary. This means the total counted salary is $1,062.50, which is below the $1,125 threshold, making the employee eligible for overtime.
Contact Mansell Law for Assistance
If you believe youâre owed overtime pay or have questions about New Yorkâs overtime laws, reach out to Mansell Law for a free consultation. Our experienced NYC employment lawyers are here to help you understand and protect your rights.