NY Minimum Wage and Exempt Salary Changes Coming January 2026
As 2025 comes to a close, New York employers should prepare for upcoming changes to minimum wage rates and exempt salary thresholds taking effect on January 1, 2026. These adjustments mark the final phase of the state’s multi-year minimum wage plan and move New York toward a market-based model going forward.
Minimum Wage Changes
In 2023, Governor Hochul approved a three-year schedule of minimum wage increases. The final round takes effect January 1, 2026, with the following hourly rates:
New York City, Westchester, Long Island: $17.00/hour
Rest of New York State: $16.00/hour
Beginning in 2027, annual minimum wage updates will be tied to the three-year regional Consumer Price Index (CPI) average. The New York Department of Labor (NYDOL) will review economic conditions and publish any rate adjustments by October 1 each year, giving employers advance notice.
Salary Thresholds for Overtime-Exempt Employees
Salary thresholds for employees classified under the executive and administrative exemptions will also rise on January 1, 2026:
NYC, Westchester, Long Island: $1,275.00/week ($66,300/year)
Rest of New York State: $1,199.10/week ($62,353.20/year)
Employers relying on exemption classifications should pay close attention to these changes. If an employee’s salary falls below the updated threshold, they will no longer qualify as exempt and must be reclassified or brought into compliance to avoid overtime liability.
A Note on the Professional Exemption
New York does not impose a higher salary threshold than federal law for the professional exemption. That means this category continues to follow the federal Fair Labor Standards Act (FLSA) minimum of $684/week ($35,568/year) — a level reaffirmed by recent court decisions blocking attempts to raise it.
What Employers Should Do Now
To stay compliant heading into 2026, employers should:
Review compensation for both hourly and salaried roles.
Adjust pay or exemption classifications before year-end if needed.
Watch for NYDOL updates as 2027 approaches and the state moves to inflation-based annual increases.
Staying proactive can help prevent wage-and-hour violations and ensure your pay practices remain compliant as regulations continue to shift.