NY DOL Finalizes Changes to the Tip Credit, Meal Credit, Uniform Maintenance Pay and Exempt Employee Salary Thresholds
As explained in our previous alert, in October 2023, after Gov. Kathy Hochul signed into law increases to New York’s minimum wage, the New York State Department of Labor (NY DOL) issued proposed changes to the tip credit, meal credit, uniform maintenance pay and exempt employee salary thresholds.
On December 27, 2023, the NY DOL finalized these new rates, and, as such, employers only have a few days to institute these changes before the start of the new year.
The new rates are summarized in our previous alert, which you can view here.
For non-exempt (i.e., hourly) employees, employers should prepare new rate of pay forms that accurately reflect the new minimum wage and any changes to the tip credit and/or meal credit, where applicable. Employers must also be aware of the changes to uniform maintenance pay and be ready to comply with those new rates where necessary. Employers should also work with their payroll providers to ensure that their pay stubs accurately reflect these changes.
For exempt (i.e., salaried) employees, employers should review these new salary requirements and ensure that those employees are being paid at least the new minimum weekly amount. However, as a reminder, the salary threshold is only one part in determining whether an employee is properly categorized as exempt from overtime requirements; these employees must also perform particular duties to also be exempt from overtime, depending on their position. Employers should thus take the time to review those duties performed by their exempt employees to ensure that they are appropriately categorized as being exempt from overtime requirements.
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For more information about this alert, please contact Carolyn D. Richmond at firstname.lastname@example.org, Glenn S. Grindlinger at email@example.com, Timothy A. Gumaer at firstname.lastname@example.org, or any member of Fox Rothschild’s New York Labor and Employment Group.