The New York Labor Commissioner recently issued a ruling that non-exempt employees must be paid an hourly rate. This law is in contrast to the federal FLSA and most state laws, which permit an employer to pay any worker (exempt or non-exempt) by salary, as long as applicable minimum wage and overtime laws are followed. It applies to almost every employer in New York.
Although this new ruling has not yet gone into effect, every New York employer should be aware of it. As soon as the Labor Commissioner finalizes regulations, they will be published in 10 New York newspapers. Thirty days after publication, the new rules will go into effect.
When that happens, only exempt employees can be paid on a salaried basis under New York law. Because the Labor Commissioner has not yet (more…)