Client Alert

U.S. Salary Threshold for Pay Frequency Increasing

As a reminder, effective March 13, 2024, the salary threshold increases for employees working in a bona fide executive, administrative, or professional capacity for purposes of wage protections under Article 6 of the New York Labor Law from $900 to $1,300 per week.

Specifically, executive, administrative, and professional employees who meet this salary threshold of $1,300 per week are not subject to the following New York Labor Law requirements:

• Paying clerical and other workers “not less frequently than semi-monthly” § 191(d).
• Obtaining the advance written consent of employees before paying wages via direct deposit (NYLL § 192).
• The employer being guilty of a misdemeanor if it fails to provide benefits or wage supplements within 30 days after they are due (NYLL § 198(c)).

Employers should review their payroll practices regarding those exempt employees making less than $1,300 a week to ensure they are in compliance with the requirements of Article 6 of the New York Labor Law. Should you have any questions regarding the new salary threshold please contact Ali Law Group.

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