In the new year, New York State is set to increase its minimum wage and overtime exemption salary thresholds. The increase in minimum wage is a part of a broader budget legislation signed by Governor Kathy Hochul in May 2023 which mandated an annual increase in the minimum wage by $0.50. Similarly, the increase in the overtime exemption salary threshold is part of regulations proposed and adopted by the New York Department of Labor in 2023.
The new minimum wage is set to take effect on January 01, 2026, and the hourly minimum wage (based on location) will be the following:
| New York City, Long Island, and Westchester | Remainder of New York State |
| $17.00 | $16.00 |
A new salary threshold for employees who are subject to the executive and administrative exemption, i.e., the minimum salary for exemption from premium overtime payment for work in excess of 40 hours in a week, will also take effect on January 01, 2026, and is also based on work location, as follows:
| New York City, Long Island, and Westchester | Remainder of New York State |
| $1,275.00/week ($66,300.00/year) | $1,199.10/week ($62,353.20/year) |
Before the new year, employers should review the wages of their employees and ensure they are already or will come into compliance when the above changes become effective.