As we approach the new year, New York employers should be aware of increases to the state exempt status salary thresholds and minimum wage that will take effect on January 1, 2026.

Exempt Salary Threshold Increases

Under New York State wage law, employees working in an executive or administrative capacity must receive a minimum weekly salary (as well as meet certain duties requirements) to be exempt from the state’s overtime pay requirements.  Beginning January 1, 2026, the thresholds for these exemptions will be as follows:

• $1,275.00 per week ($66,300.00 per year) for employees in New York City and Nassau, Suffolk, and Westchester Counties
• $1,199.10 per week ($62,353.20 per year) for employees elsewhere in New York State

These represent increases from the 2025 thresholds of $1,237.50 per week/$64,350.00 per year (NYC, Long Island, and Westchester) and $1,161.65 per week/$60,405.80 per year (remainder of the state).

New York does not designate a threshold salary for exemption for employees working in a professional capacity.  Therefore, for New York employees classified under the professional exemption, the current federal salary threshold of $684.00 per week ($35,568.00 per year) will continue to apply.

Minimum Wage Increases

Effective January 1, 2026, the final scheduled increases to New York State’s minimum wage will take effect as follows:

• $17.00 per hour for employees in New York City and Nassau, Suffolk, and Westchester Counties
• $16.00 per hour for employees elsewhere in New York State

These represent increases from the 2025 rates of $16.50 per hour (NYC, Long Island, and Westchester) and $15.50 per hour (remainder of the state).

Effective January 1, 2026, there are corresponding increases to the tip, uniform maintenance, meal, and lodging allowances, a summary of which can be found here.

Beginning in 2027 and beyond, subsequent minimum wage increases will be determined by the New York State Department of Labor and will be tied to the three-year average of the applicable regional consumer price index.

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New York employers should review their pay practices to ensure compliance with these increasing rates and thresholds taking effect in the new year.  Proskauer’s Wage and Hour Group is comprised of seasoned litigators who regularly advise the world’s leading companies to help them avoid, minimize, and manage exposure to wage and hour-related risk.  Subscribe to our wage and hour blog to stay current on the latest developments.