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 payroll@checkwisepayroll.com 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 $12.50 per hour effective on 12/31/2020. Tipped food service workers also receive an increase from $7.85 to $8.35 per hour so long as they report enough tips to bring their wages up to the $12.50 per hour minimum wage. There are also rate increases for various jobs in the hospitality industry, as well as in Long Island, Westchester, and NYC.
For more information, please visit https://labor.ny.gov/workerprotection/laborstandards/workprot/minwage.shtm and https://labor.ny.gov/formsdocs/wp/CR146.pdf.
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 12/31/2020, the salary threshold for exempt executive and administrative employees in NY increases to $937.50 per week ($48,750 per year). The weekly rate is $1,125 in NYC and $1,050 for employers in 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 Administrative Employee Overtime Exemption or Executive Employee Overtime Exemption.
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)
Beginning January 1, 2021, workers in New York will be able to obtain up to 12 weeks of paid time off at 67% of their average weekly wages capped $971.61 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 increasing from .270% to .511% up to a maximum annual deduction of $385.84.
See https://paidfamilyleave.ny.gov/2021 and https://paidfamilyleave.ny.gov/employer-responsibilities-and-resources for more information.
NY Paid Sick Leave
Beginning January 1, 2021, employees may begin to use accrued sick leave that all NY employers must provide. See below for more information.
If you have not already modified your time off accrual policy to ensure compliance with this new law, you must act now.
Legal Disclaimer: CheckWise Payroll LLC is not engaged in the practice of law. The content in this article should not be construed as legal advice, and does not create an attorney-client relationship. If you have legal questions concerning your situation or the information you have obtained, you should consult with a licensed attorney. CheckWise Payroll LLC cannot be held legally accountable for actions related to its receipt.
©2020 CheckWise Payroll LLC
