Update With New York City Minimum Wage – State And Federal Exempt Management Salary
Non-Exempt Employees: The new minimum wage in New York City for non “fast food” businesses with eleven or more employees took effect on December 31, 2016. As a result, the minimum wage increased from $9.00 per hour to $11.00 per hour. At the same time, the tip credit in the restaurant/hospitality industry increased from $1.50 per hour to $3.50 per hour. As a result, the minimum wage for tip credit employees remains at $7.50, provided that those employees are properly classified and receive at least $3.50 per hour when tips are factored in. Exempt Employees (managers): The Federal Salary increase that would have raised the minimum for exempt employees (typically managers) to $913 gross weekly and would have taken effect on December 1, 2016 was stayed as a result of a preliminary injunction in the Federal District Court for the Eastern District of Texas. However, the New York State minimum that went into effect on December 31, 2016 is $825 per week gross. In the event the injunction is denied later on, the higher Federal salary will override the New York State salary until the end of this year, when it is set to go to $975. Staying Current with Wage and Hour Law: Because of the many changes that have taken place just before the new year, employers are scrambling to make the necessary adjustments or are unclear as to what needs to be done to ensure compliance with the new laws. It is always best that the employer speak with an experienced attorney in the field of employment to stay up to date with the developments. At Paschalidis Law Offices, employers and employees can receive competent counsel in dealing with these issues. Along with representation in wage and hour litigation, we can provide preventative consulting services.