Minimum Wage to Increase in 2025

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In 2023, the New York State Legislature passed, and Governor Hochul signed, a minimum wage increase beginning in 2024 and continuing through 2026.  As you know, many other factors are related to an increase in the minimum wage.  Items such as allowances for tips, meals, housing, maintenance, and laundering of uniforms are typically adjusted to correspond with minimum wage adjustments made by the legislature.  New rates will take effect January 1, 2025. 

Perhaps the most significant change, and the one most overlooked by employers, is the minimum salary level for employees considered exempt under the Executive and Administrative exemption.  

To be considered an employee exempt from the overtime provisions of New York State Labor Law, generally, employees must pass three tests:

• Their duties – as defined by the law – must be Executive and Administrative in nature.

• They must be paid as an exempt employee – that is, their pay generally may not be changed week to week based on the quantity and quality of work.

• They must be paid a minimum weekly salary.

While the Federal government has a minimum salary level to be considered exempt, New York State has its own minimum salary level that is in excess of the federal minimum.  The Federal minimum salary level is currently $684 per week.  Recent Biden Administration attempts to increase the Federal minimum salary level have been halted by the Courts. 

The future NYS minimum wage and minimum weekly salary levels for the Executive and Administrative exemptions schedule are below: 

It’s important to be sure that you have correctly classified employees as exempt or non-exempt from overtime provisions of state and federal labor law.  Misclassification can result in significant fines and penalties. 

While new minimum wage posters are not yet available at the time of this update, when they are available, you can find them here.