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By Amanda Greenwood
Associate News Editor
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Starting January 1, 2026, the state of New York will raise salary thresholds for overtime-exempt executive and administrative employees, meaning some who were previously exempt could become eligible for overtime. Professional employees will remain exempt from overtime.
Why it Matters
New York State's annual increase to overtime salary thresholds is expected to impact thousands of businesses and employees across the state. The updated regulations determine who qualifies as exempt from overtime pay among executive and administrative salaried employees, which will ultimately change employment practices and take-home pay for New Yorkers.
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What To Know
According to reporting by the New York Post, workers in New York City, Long Island (Nassau and Suffolk counties), and Westchester County must now earn at least $1,275 per week—or $66,300 annually—to be classified as exempt from overtime. This marks an increase from the previous level of $1,237.50 per week, or $64,350 annually.
For employees in the remainder of the state, including the Hudson Valley and Catskills regions, the threshold rises to $1,199.10 per week, or $62,353.20 annually. The previous figure was $1,161.65 per week, amounting to $60,405.80 annually.
Workers who earn below these new salary minimums are generally entitled to receive overtime pay—calculated at one-and-a-half times their regular rate—for every hour worked over 40 in a workweek, regardless of their duties or job titles.
The changes mainly affect executive and administrative employees.
According to US Legal, an executive employee is defined as “a type of worker who holds a managerial position within a company. To qualify as an executive employee, an individual must meet specific criteria, including having management as their primary duty and overseeing the enterprise or a recognized department.”
Administrative employees are defined as those whose "main responsibilities include doing difficult work involving the company's policies or business operations. An administrative employee also refers to an employee who exercises discretion and independent judgment while performing his/her duty."
What People Are Saying
Attorneys at U.S. Law Firm, Mintz wrote: "To ensure compliance, employers should pay careful attention to the economic and non-economic costs required to maintain certain employees as exempt from the overtime requirements under the New York Labor Law. There are myriad business and legal considerations in determining whether to continue to classify an employee as exempt, or whether to reclassify certain employees to overtime-eligible, non-exempt positions."
What Happens Next
The new overtime thresholds take effect on January 1, 2026. Employers who do not adjust eligible employees’ compensation or reclassify positions risk potential wage claims and compliance penalties.
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