Changes are coming in 2026 for workers, exclusively in New York. Starting in January of this year, the minimum weekly wage a private-sector employee must earn to be exempt from overtime pay will increase. This has a direct impact on workers because, while it doesn’t change how overtime hours are calculated or the minimum number of hours required to earn them, it will affect their access to overtime pay.
The law updates the salary threshold that defines who is exempt from overtime pay
Going into detail, New York State will introduce changes that will directly impact workers’ paychecks. The law updates the salary threshold that defines who is exempt from overtime pay. New York will increase its salary limits for overtime pay starting January 1st, a change that will determine which salaried employees will be entitled to overtime pay in 2026. The New York Department of Labor rule (Part 142) states that some salaried employees with executive or administrative duties may be exempt from overtime pay, but only if they meet certain requirements.
The key is that you must earn at least the state’s weekly minimum wage
Going into the details, according to the official regulations, in New York City, Long Island (Nassau and Suffolk counties), and Westchester County, the threshold rises to $1,275 per week, while in the rest of the state it increases to $1,199.10. For employees in other areas of the state, including regions like the Hudson Valley and the Catskill Mountains, the exemption limit will increase to $1,199.10 per week, or $62,353.20 per year. The key is that you must earn at least the state’s weekly minimum wage. Starting in 2026, that minimum wage will increase, so you will need to earn more to qualify for the exemption. Previously, the limit in those areas was $1,161.65 per week, or $60,405.80 per year.
For residential employees, the right to this additional pay is triggered after 45 hours worked in a week
In short, the update, published annually by the New York State Department of Labor, raises the minimum weekly and annual income thresholds required for certain workers to be exempt from overtime pay in New York. According to the New York State Department of Labor, current legislation stipulates that each hour worked beyond 40 hours per week must be paid at one and a half times the regular rate. For residential employees, the right to this additional pay is triggered after 45 hours worked in a week. Consequently, the higher thresholds expand access to overtime pay while limiting the number of salaried employees employers can classify as exempt.
Some occupations that are not eligible for overtime pay under state and federal law include: executive, administrative, and professional personnel…
Specifically, these revised salary limits primarily apply to employees classified as executive or administrative staff. These classifications are commonly used by employers to determine whether a salaried employee is exempt from overtime pay. Therefore, some occupations that are not eligible for overtime pay under state and federal law include: executive, administrative, and professional personnel; outside sales representatives; federal, state, or municipal public employees; farmworkers; taxi drivers; camp counselors; part-time nannies; members of religious orders; and certain positions in religious or charitable institutions. With these specifications, citizens are advised to check their eligibility bracket to determine if they are eligible or not, in order to avoid bureaucratic errors.