New York and California Employers: A reminder that minimum salary requirements for overtime exemption eligibility are about to change.
Effective January 1, 2025, New York’s executive and administrative exemption salary threshold will rise to $1,237.50 per week ($64,350 annually) for employees working in New York City and Nassau, Suffolk, and Westchester counties. For those living elsewhere in New York state, it will increase to $1,161.65 per week ($60,405.80 annually).
Likewise, on January 1, 2025, California’s minimum exempt salary for administrative, professional and executive employees will increase to $5,720 per month ($68,640 annually).
Employers operating in these states should consult with counsel to ensure compliance. Note that these changes apply regardless of what is happening (or not happening) at the federal level.
And, as always, remember that being paid a minimum salary does not, by itself, make an employee exempt from overtime. Employees must also satisfy one of the duties tests to be exempt from (ineligible for) overtime pay.