Exemptions: Overtime & minimum wage - New York

Summary of differences between federal and state regulations

Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional, and outside sales employees. Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees.

To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis. These salary minimum does not apply to outside sales employees, teachers, and employees practicing law or medicine.

In New York the following individuals are exempt from the minimum wage provisions: farm laborers, people in executive, administrative or professional positions, outside sales people, taxi drivers, and members of the clergy.

Under New York law, an Executive or Administrative employee must be paid a minimum salary equivalent to 75 hours at the state minimum wage.

Under Section 142-2.14 of the New York Codes, Rules, and Regulations (NYCRR), employees who work in an executive or administrative capacity and who are paid a salary not less than the thresholds set by state regulations may be exempt from the state’s overtime pay requirements. The NYDOL has set yearly increases to those thresholds for the next three years starting in 2024 as follows:

Employees who work in a bona fide professional capacity may also be exempt if they meet the specific requirement of Section 142-2.14 of the NYCRR, which does not include specific salary thresholds for individuals like those working in an executive or administrative capacity.

New York does not reference an exemption for computer employees, nor an exemption for “highly compensated employees” earning more than $107,432 per year, and may not recognize either category.

State

Contact

New York State Department of Labor

Regulations

Article 19 - Minimum Wage Act

12 NYCRR §142-2.14 (definition of employee)

Federal

Contact

The Department of Labor is the federal agency that monitors hours worked.

Regulations

Regulations for exempt employees can be found in CFR 29 Part 541, Defining And Delimiting The Exemptions For Executive, Administrative, Professional, Computer And Outside Sales Employees