A lot of employers think if someone’s salaried, that’s the end of the conversation. No timesheets, no overtime, no problem. But that’s not how the law works — especially in New York.
If you misclassify an employee as exempt from overtime, and they don’t meet the required salary threshold, you could be on the hook for years of unpaid wages.
Let’s break this down clearly — no legal fluff, just what you need to know if you’re trying to stay compliant or figure out if you’ve been underpaid.
The Weekly Salary Thresholds for Overtime Exemption
Whether you’re classified as an executive, administrator, or professional, there’s a minimum salary you must earn to be exempt from overtime pay. And that number depends on where in New York you work.
Here are the current 2024 salary thresholds:
- New York City:
You must earn at least $1,237.50 per week to be overtime exempt.
That’s $64,350 per year. - Rest of New York State:
You must earn at least $1,161.65 per week to qualify for exemption.
That comes out to $60,405.80 per year.
If you’re paid anything less — even by a few dollars — you do not meet the exemption, and you must be paid overtime for all hours worked over 40 per week.
And these numbers aren’t staying flat. In 2026, the salary thresholds will rise:
- NYC: $1,275.00/week
- Rest of NY State: $1,199.10/week
If you’re an employer, you need to budget for that now. If you’re an employee, keep an eye on your pay stub.
Real-World Example: Misclassified Manager in Brooklyn
I worked with a client who was salaried at $1,100/week in NYC and routinely worked 50–55 hours. On paper, they were called a “manager.” But they didn’t meet the salary test — and they were still doing hands-on work with no real authority over staff.
Let’s do the math:
- $1,100 ÷ 50 = $22/hour
- Overtime rate = $33/hour
- Overtime owed (10 hours/week) = $330/week
- Over 50 weeks = $16,500/year
And that’s just one year. Add liquidated damages and legal fees, and you’re in the deep end.
What the Law Actually Requires
To legally classify someone as exempt from overtime under federal or New York law, you need to check all of these boxes:
- Salary basis test — They’re paid a set salary, not hourly.
- Salary threshold test — They earn enough weekly to qualify.
- Duties test — Their actual job duties match one of the defined exemptions (executive, administrative, professional).
Miss one? They’re non-exempt. Overtime is owed.
If You Get This Wrong, It’s Expensive
Whether you’re an employer trying to stay compliant or a worker wondering if you’ve been shorted, it pays to understand wage and hour law. Misclassification doesn’t just result in backpay — it can trigger penalties, double damages, and lawsuits from multiple employees.
We’ve seen it all: businesses caught off guard, employees unaware they’ve been underpaid for years, and settlements that could’ve been avoided with a closer look at the payroll numbers.
Our wage and hour attorneys can help you review your classification system or pursue a claim if you think something’s off.
Have questions? Contact us to talk with The Samuel Law Firm. Whether you’re looking for clarity, protection, or a path forward — let’s connect.
