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The Fair Labor Standards Act (FLSA) is a federal law that mandates employers to pay their employees for their work hours, including overtime pay for working beyond the standard 40-hour workweek. In New York State, the minimum wage and overtime requirements are set by state law, but they are not less favorable than federal law. However, a common misconception is that salaried employees are not entitled to overtime pay, which is not true.

More on this from the New York wage and hour lawyers at The Samuel Law Firm below.

Salaried employees are those who receive a fixed salary for their work, regardless of the number of hours worked. They are commonly referred to as exempt employees, meaning they are exempt from overtime pay provisions under FLSA. However, this does not imply that all salaried employees are exempt from overtime pay under New York state law. New York state law provides specific criteria for exempting employees from overtime pay, regardless of whether they are salaried or hourly.

Under New York state law, salaried employees can receive overtime pay if they meet specific criteria. The state law applies to both private and public employers, including federal and state government agencies. The criteria for salaried employees to receive overtime pay under New York state law are based on the job duties and salary of the employee, and they must satisfy both to be considered exempt from overtime pay.

The job duties test is the first requirement that must be satisfied for salaried employees to receive overtime pay under New York state law. This test is used to determine whether an employee’s job duties are exempt or non-exempt. The job duties test is based on the employee’s primary job duties, which are the most essential duties of their job, and the amount of time they spend performing these duties. The following are the categories of exempt job duties under New York state law:

I. Executive Duties: Employees whose primary duties involve managing the company or a department, including hiring, training, and firing employees, are exempt under the executive duties category. For example, a CEO, Vice President, or Director of Operations would fall under this category.

II. Administrative Duties: Employees whose primary duties involve performing administrative tasks directly related to the management or operation of the company are exempt under the administrative duties category. For example, a Human Resources Manager, Payroll Manager, or Legal Counsel would fall under this category.

III. Professional Duties: Employees whose primary duties involve performing work that requires advanced knowledge in a particular field, usually obtained through education, training, or experience, are exempt under the professional duties category. For example, lawyers, doctors, and accountants would fall under this category.

The salary basis test is the second requirement that must be satisfied for salaried employees to receive overtime pay under New York state law. This test requires that the employee receives a fixed salary that is not subject to be reduced based on how much work is performed or the quality of such work. The following are the criteria that must be met for the salary basis test to be satisfied:

I. The employee must receive a predetermined salary amount each pay period.

II. The salary amount cannot be reduced based on how many hours are worked or the quality or quantity of work performed.

III. The employee’s salary must meet or exceed a minimum threshold set by the state.
The minimum salary threshold for exempt employees under New York state law is currently $1,125 per week or $58,500 annually for employers in New York City. For employers outside of New York City, the minimum salary threshold is $937.50 per week or $48,750 annually.