Prepare Now for the Next Round of NYS Minimum Wage and Salary Threshold Changes Effective 1/1/26
As 2026 rapidly approaches, New York State employers should begin preparing for the next round of scheduled minimum wage and salary threshold changes effective January 1, 2026. The NYS minimum wage will increase to:
- $17 per hour in NYC, Long Island, and Westchester County, and
- $16 per hour for employers in the rest of NY state.
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Then beginning in 2027, the minimum wage will increase annually by the three-year moving average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region. However, an "off-ramp" is available in the event of certain economic or budget conditions.
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In addition to the minimum wage increase, the NYS salary thresholds for the executive and administrative overtime exemptions are also scheduled to increase January 1, 2026, then again on January 1, 2027 based on the above formula and assuming the ”off ramp” isn’t triggered.
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NYS exempt salary thresholds effective January 1, 2026:
- NYC, Long Island, and Westchester County: $1,275 per week ($66,300 when annualized)
- Rest of New York State: $1,199.10 per week ($62,353.20 when annualized)
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While the NYS exempt salary threshold does not apply to the professional exemption, the federal Fair Labor Standards Act (FLSA) exempt salary threshold applies to most jobs that fall under the professional exemption category. Jobs such as teachers, doctors, lawyers, and outside sales employees do not have a salary requirement.
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A reminder that there has been no further changes issued for the federal salary threshold since the DOL’s 2024 and 2025 salary threshold increases were struck down earlier this year. Which means the federal salary threshold is still at $684 per week ($35,568 when annualized).
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You may also recall that effective back on March 13, 2024, NYS increased the salary thresholds from $900 to $1,300 per week for employees working in a bona fide executive, administrative, or professional capacity, but only for purposes of wage protections under Article 6 of the NYLL. The purpose of these thresholds, which are unrelated to and separate from the above overtime exemption thresholds, is to create an exemption from the Article 6 requirements regarding pay frequency, consent for direct deposit, and the timing of other benefits and wage supplements for executives and administrative and professional employees.
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We will monitor the NYS poster site and once we see the new NYS minimum wage poster is up, we will notify members. Those ordering 'all in one' posters from a vendor should confirm whether the new version is on the poster you are ordering. It generally takes a few weeks for vendors to update their posters since they receive updates when employers do.
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Our poster vendor partner, GovDocs, will be working to update their posters once NYS releases the new versions. A reminder that chamber members receive a 10% discount on labor law and other posters ordered through GovDocs. Here is the site to order from (or check out prices): http://shop.govdocs.com/. Once in your shopping cart, enter promotion code GN-RBA to apply the 10% discount. They also have an electronic poster package to help comply with the NYS electronic poster requirement. Be sure to update your electronic posters with the new minimum wage poster and distribute to employees or post on your intranet/internet!
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Greater Rochester Chamber members with questions on these or other HR topics can contact the HR Helpline staff for assistance: Jennifer Suppé, Manager, Organizational Culture and HR Services, MSHRD, PHR, SHRM-CP at (585) 256-4608, Cindy Miller, HR Services Partner at (585) 256-4606, or Kathy Richmond, Sr. Director, HR Services at (585) 256-4618. HR Helpline access varies by Membership tier.