December 2024

Federal Updates

 

New York Increases Earnings Threshold for Certain Employee Pay Provisions

10/05/23

Author: ADP Admin/Wednesday, October 4, 2023/Categories: Compliance Corner , State Compliance Update, New York

The state of New York has enacted Senate Bill 5572/Assembly Bill 6796, which increases the earnings threshold for exemption from certain wage payment protections under the New York Labor Law.

The Details:

Currently, individuals employed in an executive, administrative, or professional capacity who earn in excess of $900 per week are exempt from certain wage payment protections relating to, among other things, pay frequency and direct deposit consent. As of March 13, 2024, the earnings threshold will increase to in excess of $1,300 per week, and employees who do not meet this threshold will be subject to these wage payment protections.

Note:   The increased threshold does not impact the weekly earnings threshold that workers employed in a bona fide executive or administrative capacity must earn to be exempt from overtime pay requirements.

Wage Payment Protections: 

Covered exempt employees not earning in excess of $1,300 per week will be subject to the following labor law protections:

Frequency of Pay:  not less than weekly pay for most manual workers; bi-weekly pay for clerical and other workers, and monthly pay for commission salespersons;

 

Direct Deposit:  requires employee consent for direct deposit;

Benefits and Wage Supplements: employers must comply with expense reimbursement, employee benefits, vacation, severance, and holiday pay policies;

 

Methods of Payment of Wages:  permissible payments under the New York Labor Law are limited to cash, check, direct deposit, and payroll card.

As of March 13, 2024, in addition to pursuing a private action against their employer, executive, administrative, and professional employees not earning in excess of $1,300 per week may file a complaint with the New York Department of Labor (NYDOL) to recover owed wages.

Next Steps:

Employers should note the increased earnings threshold for March 13, 2024 and adhere to the wage payment requirements for all covered employees.

Have Questions?

Please contact your dedicated service professional with any questions.  

 

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