New York Employers: Changes are Coming to Overtime Salary Thresholds and Uniform Maintenance Pay
Changes to New York’s uniform allowance and salary exemption thresholds are scheduled to take effect on January 1, 2025.
12.02.24
In the hospitality industry, employers must purchase or reimburse employees for required uniforms. Similarly, employers are obligated to pay for the maintenance of required uniforms. Under the New York Labor Law, if an employee is required to wear a uniform, the employer can either (a) launder and maintain the uniform itself; or (b) pay the employee a weekly allowance, also known as “Uniform Maintenance Pay.” A “required uniform” is defined as “clothing required to be worn while working at the request of an employer” and excludes “clothing that may be worn as part of an employee’s ordinary wardrobe.” The additional pay is set forth in weekly rates based on the number of hours worked. Uniform maintenance pay cannot be offset by free meals or lodging. The following are the increased wage rates to reflect the uniform pay:
NEW YORK CITY, LONG ISLAND & WESTCHESTER COUNTY
|
|
Current Rate |
New Rate Effective January 1, 2025 |
|
Work Week More than 30 Hours |
$19.90 |
$20.50 |
|
Work Week Between 20-30 Hours |
$15.75 |
$16.25 |
|
Work Week 20 Hours or Less |
$9.50 |
$9.80 |
REMAINDER OF NEW YORK STATE
|
|
Current Rate |
New Rate Effective January 1, 2025 |
|
Work Week More than 30 Hours |
$18.65 |
$19.25 |
|
Work Week Between 20-30 Hours |
$14.80 |
$15.30 |
|
Work Week 20 Hours or Less |
$8.95 |
$9.25 |
Separately, the New York State Minimum Wage Orders contain New York’s overtime requirements. Some occupations are exempt from the overtime pay provisions of the State Labor Law. These include, but are not limited to, executive, administrative and professional employees. Employers who are subject to state overtime requirements must pay overtime at time and a half of the regular rate, except for a limited exception permitting certain employers to pay time and a half of the minimum wage rate.
On January 1, 2025, the salary thresholds will increase as follows:
|
Region |
Current Weekly Minimum |
New Rate Effective January 1, 2025 |
|
New York City, Long Island, Westchester County |
$1,200 ($62,400/year) |
$1,237.50 ($64,350/year) |
|
Rest of New York |
$1,124.20 ($58,458.40/year) |
$1,161.65 ($60,405.80/year) |
Employers must prepare for these forthcoming wage-related adjustments which will take effect on January 1, 2025. Further, employers should consult qualified employment law counsel to determine the applicability of the uniform maintenance pay and overtime exempt threshold, and ensure their compliance going forward.
Co-author Lee Moylan is chair of the firm’s labor & employment practice group and co-author C. Quincy Conrad is an associate in the Litigation Department at Klehr Harrison