2026 Wage Updates for New York Employers

Seyfarth Synopsis: Beginning January 1, 2026, the minimum wage and overtime exemption salary thresholds across New York State will increase.

As we close out 2025 and look to turn the calendar to 2026, New York employers should keep in mind the scheduled minimum wage and exempt status threshold increases set to go into effect on January 1, 2026. 

Minimum Wage Increases for 2026

As discussed here and here, New York Governor Hochul signed legislation in 2023 adopting a three-year schedule of annual increases to the state’s minimum wage rates, followed by a market-based approach to adjust minimum wage rates moving forward. 

The final scheduled increase will take effect on January 1, 2026. On that date, the following minimum wage hourly rates will apply:

 

New York City, Long Island, and Westchester	Remainder of New York State
$17.00	$16.00

Beginning January 1, 2027, subsequent minimum wage increases will be tied to the three-year average of a regional consumer price index.  The New York Department of Labor (“NYDOL”) is tasked with monitoring the statewide economy and adjusting the minimum wage accordingly, or determining that no increase is necessary.  If the NYDOL determines a rate increase is appropriate, it will need to post the adjusted rate no later than October 1 of the year prior to the planned increase to give employers sufficient time to prepare.

Overtime Exemption Salary Threshold Increases

Under NYCRR § 142-2.14, employees who work in an executive or administrative capacity and who are paid a salary not less than the thresholds set by state regulations may be exempt from the state’s overtime pay requirements.  As discussed here and here, beginning January 1, 2026, the following salary thresholds for the “executive” and “administrative” exemptions will take effect:

 

New York City, Long Island, and Westchester	Remainder of New York State
$1,275.00/week ($66,300.00/year)	$1,199.10/week ($62,353.20/year)

Bear in mind that New York does not have a higher salary threshold than federal law with respect to an “employee employed in a bona fide professional capacity.”  As such, the professional exemption under New York law will continue to be subject to the federal professional exemption salary threshold, currently set at $684.00 per week ($35,568.00 per year) after a federal judge rejected the Biden Administration’s attempt to increase that threshold (see here) and the federal Department of Labor under the Trump Administration indicated it would no longer pursue the prior administration’s attempted increase.

 Outlook

Employers operating in New York should review and revise their pay policies and procedures to ensure compliance with these new wage and salary thresholds.  Please reach out to any of the authors – or your Seyfarth attorney – with any questions.