- within Employment and HR topic(s)
- in Australia
- with readers working within the Business & Consumer Services and Retail & Leisure industries
The New York State minimum wage rate and overtime exemption salary thresholds are set to increase, as follows, on January 1, 2026:
New York Minimum Wage 2026 Increases
Minimum wage rates in New York are set to increase by $0.50 on January 1, 2026, with minimum wage rates remaining dependent on where the employee works within the state:
- Employees in New York City, Nassau, Suffolk, and Westchester counties: The minimum wage increases to $17.00/hour from $16.50/hour.
- Employees in the Remainder of New York State: The minimum wage increases to $16.00/hour from $15.50/hour.
- Employees in New York City, Nassau, Suffolk, and Westchester counties: The weekly salary threshold will increase to $1,275.00/week (i.e., $66,300.00 annually) from $1,237.50/week (i.e., $64,350.00 annually) – an annual difference of $1,950.00.
- Employees in the Remainder of New York State: The weekly salary threshold will increase to $1,199.10/week (i.e., $62,353.20 annually) from $1,161.65/week (i.e., $60,405.80 annually) – an annual difference of $1,947.40.
Certain industries may also be impacted by increases to minimum wage offsets, such as the tip credit for food service workers and meal credit for restaurant and hotel workers.
Overtime Exemption Salary Basis Increases
Starting on January 1, 2026, the salary basis requirement for the executive and administrative overtime exemptions will increase as follows for New York employees:
There is no minimum threshold for professional employees under the New York Labor Law.
Takeaway
The changes to the minimum wage and salary basis threshold for overtime exemptions continue to outpace the Federal thresholds by nearly double. To ensure compliance, employers should pay careful attention to the economic and non-economic costs required to maintain certain employees as exempt from the overtime requirements under the New York Labor Law. There are myriad business and legal considerations in determining whether to continue to classify an employee as exempt, or whether to reclassify certain employees to overtime-eligible, non-exempt positions. Mintz's Employment Practice is available to help employers understand these various considerations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
