Is Your Salaried Employee Actually Exempt From Overtime? New York’s 2026 Salary Threshold

A lot of small business owners assume that if an employee is paid a salary, they're automatically exempt from overtime. That's not how it works. In New York, certain employees must meet both a salary requirement and a job duties test to qualify for an overtime exemption. And in 2026, the salary threshold increased again.

That means it's worth taking a second look at your salaried employees—particularly anyone whose salary was close to the 2025 threshold. If their salary doesn't meet the new 2026 requirement, you could have an employee who is entitled to overtime even though you've been treating them as exempt.
​
Let's look at what changed and what New York employers should do now.

New York's 2026 Salary Threshold for Overtime Exemptions

​Effective January 1, 2026, the minimum weekly salary for employees who qualify for New York's executive or administrative overtime exemptions increased to:
  

• $1,275 per week ($66,300 annually) in New York City, Long Island and Westchester County
• $1,199.10 per week ($62,353.20 annually) in the rest of New York State

These annual amounts are based on 52 weeks of pay. In 2025, the salary thresholds were $1,237.50 per week in New York City, Long Island and Westchester County and $1,161.65 per week in the rest of the state. That means the annual salary requirement increased by approximately $2,000.

Consider an employee who is paid a salary of $64,000 per year.

In most of New York State, that salary is above the 2026 threshold of $62,353.20. But in New York City, Long Island and Westchester County, the applicable threshold is $66,300.

If that employee is classified as exempt under the executive or administrative exemption, the employer should review the employee's classification. The employee's salary alone is not enough to determine whether the exemption applies. If the employee does not meet the applicable requirements for exemption, the employee may be entitled to overtime.

This is why employers should review their exempt employees whenever New York's salary threshold changes.

What If a Salaried Employee Is Below the Threshold?

If an employee classified as exempt under the executive or administrative exemption does not meet the applicable salary threshold, the employer generally cannot continue treating that employee as exempt simply because the employee is paid a salary. An employer may choose to increase the employee's salary so that it meets the applicable threshold, provided the employee also satisfies the other requirements for the exemption.

Another option is to treat the employee as nonexempt and pay overtime for hours worked over 40 in a workweek.

For covered employees, New York generally requires overtime pay at one-and-one-half times the employee's regular rate of pay for hours worked over 40 in a workweek. If you change an employee from an exempt salaried position to a nonexempt position, there are also payroll and recordkeeping considerations. You will need to accurately track the employee's hours worked and make sure overtime is properly calculated and reported on the employee's wage statements.

Employers should also be aware that changing an employee's rate of pay can trigger New York's pay notice requirements.

Salary Isn't the Only Requirement

Meeting the salary threshold does not automatically make an employee exempt from overtime. The employee must also satisfy the applicable job duties test.

For example, an employee classified under the executive exemption generally must have management as a primary duty, direct the work of at least two employees, and have authority to hire or fire employees—or have recommendations regarding hiring, firing and other employment decisions given particular weight.

The administrative exemption has different requirements. Generally, the employee must perform office or non-manual work related to management or general business operations and exercise discretion and independent judgment on matters of significance.

A job title such as "manager," "administrator" or "director" does not automatically make someone exempt from overtime.

What About Professional Employees?

Professional employees are treated differently under New York's overtime rules.
New York does not impose the same minimum salary requirement on professional employees that applies to employees claiming the executive or administrative exemption. Instead, the professional exemption has its own requirements concerning the employee's duties and qualifications.

So, if you have salaried professional employees, don't automatically apply the $66,300 or $62,353.20 thresholds to them. The exemption needs to be evaluated based on the applicable professional exemption requirements.

What Should New York Employers Do?

If you have salaried employees classified as exempt, now is a good time to review those classifications.

At a minimum, you should confirm:

1. The employee's salary meets the applicable 2026 threshold, if a salary threshold applies to the exemption.
2. The employee is being paid on a qualifying salary basis.
3. The employee's actual job duties satisfy the applicable exemption.
4. Your payroll system is set up correctly for the employee's classification.
5. Hours are being tracked appropriately if the employee is nonexempt.
6. Any changes to the employee's pay or classification are properly documented.

If you discover that an employee who has been treated as exempt no longer qualifies for the exemption, don't simply assume that changing the employee's classification going forward resolves the issue. You should also consider whether there were any overtime issues during the period when the employee was classified as exempt.
When you're dealing with an employee classification question, it's a good idea to consult with an employment attorney if you are unsure how the law applies to the employee's specific circumstances.

Don't Assume "Salaried" Means "Exempt"

An employee can be paid a salary and still be entitled to overtime. With New York's 2026 salary threshold now in effect, employers should take a few minutes to review their salaried employees—especially anyone whose salary is close to the applicable threshold.

A quick review now can help prevent an overtime problem from becoming a much more expensive back-pay issue later.

Need help with your payroll?
SwiftChecks helps New York small businesses manage payroll, payroll taxes and other payroll-related requirements. 

Frequently Asked Questions

What is the New York salary threshold for overtime in 2026?

​For executive and administrative employees seeking an overtime exemption, the 2026 threshold is $1,275 per week ($66,300 annually) in New York City, Long Island and Westchester County and $1,199.10 per week ($62,353.20 annually) in the rest of New York State.

Does being paid a salary mean an employee is exempt from overtime in New York?

​No. Being paid a salary does not automatically make an employee exempt from overtime. The employee must meet the requirements of a specific overtime exemption, which can include both a salary requirement and a job duties test.

Can a salaried employee still receive overtime?

Yes. A salaried employee can be nonexempt and entitled to overtime. Salary and exemption from overtime are not the same thing.

What happens if a salaried employee does not meet the New York overtime salary threshold?

If the employee is relying on an executive or administrative exemption and does not meet the applicable salary threshold, the employer generally cannot continue treating the employee as exempt under that exemption. The employer may need to increase the salary to meet the threshold or treat the employee as nonexempt and pay overtime as required.

Do professional employees have to meet New York's salary threshold?

Professional employees have different exemption requirements. New York does not apply the same minimum salary threshold to the professional exemption that it applies to executive and administrative employees.

Can an employer change an employee from salary to hourly pay?

​An employer may change an employee's method of pay, but New York's pay notice requirements and other wage-and-hour rules may apply. Employers should make sure any change is properly communicated and reflected in payroll records and wage statements.