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IMPORTANT: Labor & HR Committee Update

Frank Kerbein, Director, Center for Human Resources
December 28, 2016

Hello Everyone:
Below you will find information regarding new developments in human resource management. Feel free to contact me directly if you would like any additional information or if you would like to discuss potential impacts and compliance strategies. I can be reached at frank.kerbein@bcnys.org or at (518) 465-7511, ext. 210.

Minimum Wage

Today, December 28th, the Department of Labor has published in the State Register the final rule regarding changes to minimum wage in New York State. The minimum wage schedule is as follows:

Minimum Wage Rate Schedule

Location 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 2021
NYC-Large Employers (11 or more) $11.00 $13.00 $15.00      
NYC-Small Employers (10 or less) $10.50 $12.00 $13.50 $15.00    
Long Island & Westchester $10.00 $11.00 $12.00 $13.00 $14.00 $15.00
Remainder of the NY State $9.70 $10.40 $11.10 $11.80 $12.50 *

* Annual increases for the remainder of the state will continue after 12/31/20 until the rate reaches $15. Starting in 2021, the annual increases will be published by the Commissioner of Labor on or before October 1. Increases will be based on percentage increases determined by the Director of the Division of the Budget, based on economic indices, including the Consumer Price Index.

Exempt Employees

In addition, this DOL regulation will also increase New York’s minimum salary levels for positions to be considered exempt from overtime for Executive and Administrative employees. Under state labor law, the state’s exempt employee threshold is adjusted in proportion to increases in the minimum wage. They are increased as follows:

New York City Large Employers (11 or more employees):
$825.00 per week on and after December 31, 2016
$975.00 per week on and after December 31, 2017
$1,125.00 per week on and after December 31, 2018

New York City Small Employers (10 or fewer employees):
$787.50 per week on and after December 31, 2016
$900.00 per week on and after December 31, 2017
$1,012.50 per week on and after December 31, 2018
$1,125.00 per week on and after December 31, 2019

Remainder of Downstate (Nassau, Suffolk and Westchester counties):
$750.00 per week on and after December 31, 2016
$825.00 per week on and after December 31, 2017
$900.00 per week on and after December 31, 2018
$975.00 per week on and after December 31, 2019
$1,050.00 per week on and after December 31, 2020
$1,125.00 per week on and after December 31, 2021

Remainder of the State:
$727.50 per week on and after December 31, 2016
$780.00 per week on and after December 31, 2017
$832.00 per week on and after December 31, 2018
$885.00 per week on and after December 31, 2019
$937.50 per week on and after December 31, 2020

Other Wage Order Changes
This regulation also adopts other proportional increases related to tipped wages, meal and lodging allowances, and more.  You can find the final rule here.

Minimum Wage Poster
The state’s new minimum wage posters are now available and must be displayed by 12/31/16. You can find them here:  for Miscellaneous Industries; for Hospitality and Fast Food workers.

New Form I-9
There is a new Form I-9 (the Employment Eligibility Verification form) that must be used by all employers.  Employers may continue using the current version of Form I-9 (with a revision date of 03/08/2013) until January 21, 2017. After January 21, employers must use the new form. The changes are specifically designed to help employers reduce technical errors for which they may be fined.

Employers filling out the new form I-9 using Adobe Reader will still need to print the form, obtain handwritten signatures, store in a safe place, monitor reverifications and updates with a calendaring system, and retype information into E-Verify as required. More information and the new form can be found here.

What’s NYC Up To?

After the New Year, The New York City Council will be considering several pieces of legislation relating to employee scheduling flexibility in the fast food and retail industries.  Proposed legislation includes:

We posted these proposals on our web site here, and will be monitoring City Council activities. Please feel free to contact me with any comments or questions on these proposals.

Member Input Needed

In preparation for the 2017 legislative session, I am asking for input from the more than 1,000 HR and business professionals that make up the Labor & Human Resource Committee on New York State legislative and regulatory issues of significance to you and your company.

Attached is last year’s Business Council Legislative Agenda. Many issues from last year will carry over into 2017. I also expect increased legislative interest in such things as predictive scheduling, “ban the box,” restrictions on pre-employment credit checks, mandatory paid sick leave, proposed regulations regarding implementation of Paid Family Leave and more.

Please take this opportunity to let me know what issues are important to you. You may reach me at (800) 332-2117 or at frank.kerbein@bcnys.org. Thank you for your consideration and for your feedback.