Minimum Wage Increases for 2024

Beginning January 1, 2024, New York State's minimum wage will increase in accordance with the following table:

In addition to the increase in the minimum wage, for salaried employees who meet either the administrative or executive exemption from the Fair Labor Standards Act overtime provisions, the salary threshold they must be paid is also increasing. As of January 1, 2024, in New York State, the minimum salary required for executive and administrative exemptions will be $1,200.00 per week in NYC, Long Island, and Westchester. In the remainder of the state, the minimum salary required will be $1,124.20 per week. These changes are significant for businesses as they adjust payroll to meet these new thresholds for salaried employees who are exempt from overtime under these specific classifications. The alternative is to classify these employees as non-exempt and pay them an hourly wage.Top of Form

Action Steps

Here are the key actions employers should take to ensure compliance:

1. Adjust Hourly Wages to Reflect the New Minimum Wage Rates;
   
2. Understand and Apply Tip Credits Correctly;
   
3. Adjust Salaries for Exempt Employees;
   
4. Evaluate Exemption Classifications;
   
5. Communicate Changes to Employees; It's important to clearly communicate these changes to all employees, ensuring they understand their new wage rates and any changes to their employment classification. Employers must also update their NYS minimum wage poster. HR One clients can download the poster by logging into the Members area in the navigation bar near the top of the page under the "Posters" link.
6. Ensure Recordkeeping Compliance; Proper documentation of wages, hours worked, and payroll records is essential, especially with these changes in wage rates and potential reclassification of employees.

Ensuring these steps are taken will help maintain compliance with the updated labor laws and mitigate the risk of penalties or legal issues. For more information contact HR One.