CheckWise Payroll is committed to keeping you up to date on the latest payroll related changes in NY State. Below you will find some key information, as well as links to the corresponding articles and forms furnished by NY.
Have questions about your employees that are working outside of NY? Email us at firstname.lastname@example.org and one of our service representatives will be happy to help you.
NY Minimum Wage Increase
For employees working in upstate NY, the minimum wage rate is increasing to $13.20 per hour effective on 12/31/2021. Tipped food service workers can be paid as low as $8.80 per hour so long as they report enough tips to bring their wages up to the $13.20 per hour minimum wage. The minimum wage for Long Island, Westchester, and NYC is $15.00 per hour. There are also rate increases for various jobs in the hospitality industry.
For more information, please visit https://labor.ny.gov/workerprotection/laborstandards/workprot/minwage.shtm, https://labor.ny.gov/formsdocs/wp/CR146.pdf and https://dol.ny.gov/minimum-wage-tipped-workers.
If you have employees working in other states, please check with each state’s minimum wage website to see if you need to increase their hourly rate.
Don’t forget to post the new minimum wage notice with the rest of your labor law notices. Contact us if you want to discuss obtaining a laminated State and Federal Labor Law poster.
NY Overtime Salary Threshold Increase
Effective on 12/31/2021, the salary threshold for exempt executive and administrative employees in NY increases to $990.00 per week ($51,480 per year) for upstate NY. The weekly rate is $1,125 in NYC, Nassau, Suffolk, and Westchester counties.
For an employee to be considered exempt from overtime under the Fair Labor Standards Act (FLSA), that person must satisfy both the job duties test and the salary threshold test.
For more information, see https://dol.ny.gov/overtime-faq-1.
If you are paying employees in other states, please refer to the corresponding state regulations to ensure you’re in compliance.
NY Paid Family Leave (PFL)
Workers in New York can obtain up to 12 weeks of paid time off at 67% of their average weekly wages capped $1,068.36 per week. Employees may use this benefit for the following reasons:
- Bond with a new child
- Care for a close relative with a serious health condition, or
- Help out when a family member is called into active military service
- Order of quarantine due to COVID-19 * See https://paidfamilyleave.ny.gov/COVID19 for more information.
Also, the employee contribution rate is 0.511% up to a maximum annual deduction of $423.71.
See https://paidfamilyleave.ny.gov/2022 and https://paidfamilyleave.ny.gov/employer-responsibilities-and-resources for more information.
NY Paid Sick Leave
Reminder: All NY employers are required to provide sick leave to employees. If you have not already implemented sick leave into your company policy, please see below for more information on your requirements.
If you have not already modified your time off accrual policy to ensure compliance with this new law, you must act now.
NY Secure Choice Savings
On October 21, 2021, Governor Hochul signed legislation amending the Secure Choice Savings Plan requiring private employers to automatically enroll employees into a mandatory retirement savings program.
Which companies are impacted?
Covered employers are those that fit all 3 criteria listed below:
- Had 10 or more employees in the previous year
- Have been in business for at least 2 years, and
- Don’t already have a retirement plan (e.g. 401(k), 403(b), Simple IRA
What do you need to do now?
NY is working on rolling out guidance and enrollment details for this program, but it could be anywhere from 9 to 12 months before it’s implemented. Stay tuned for more information when this guidance is released.
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