NY and CA employers: Let’s talk some more about overtime.
As we mentioned in our post last week about the federal DOL’s proposed increase to minimum exempt salaries, employers always have to take state requirements into account when determining classifications.
CA already announced that its minimum wage will increase to $16/hour effective January 1, 2024 for employers of all sizes, which corresponds to a new, California annual minimum exempt salary of $66,560, also effective January 1, 2024.
New York also recently passed a law that will increase minimum wage to $16/hour in NYC and surrounding areas effective January 1, 2024 (with additional increases to $16.50/hr and $17/hr in 2025 and 2026 respectively). The rest of the state will also have increases on a slower scale, reaching $16/hr by 2026. The text of the law is available here: NY State Senate Bill 2023-S4006C
We expect to see a corresponding increase of the New York minimum exempt salary to be announced by year end, also effective in January 2024. We will keep everyone apprised.
Remember classifications require a two-part test: it’s not just about salaries, but also the employee’s job duties that determines proper classifications.