New York Overtime and Labor Laws
The current Federal minimum wage rate is $7.25 per hour effective July 24, 2009. Prior to July 24, 2009, it was $6.55 per hour. Separate rules apply for certain workers, including those who receive tips.
New York Hospitality Wage Orders have been revised. These revisions go into effect January 1, 2011 but employers have until March 2, 2011 to comply. Under these revisions, food service workers are entitled to receive a cash wage of at least $5.00 per hour, provided that the worker’s tips, when added to the $5.00, total at least the current state minimum wage.
Service employees in all establishments are entitled to receive a cash wage of at least $5.65 per hour, provided that the worker’s tips, when added to the $5.65, total at least the current state minimum wage.
Service employees in resort hotels, including chambermaids, are now entitled to receive a cash wage of at least $4.90 per hour, provided that the worker’s weekly average of tips adds up to at least enough to bring their total pay up to the current state minimum wage.
Meals allowances of $2.50 per meal can be deducted from a worker’s pay for food service workers in the restaurant or hotel industry.
In addition, all non-exempt employees (except commissioned salespersons) are required to be paid on an hourly rate basis. Salaries, weekly rates, day rates, or piece rates are no longer allowed.
Under the new hospitality regulations, residential workers (“live-in workers”) are now entitled to overtime for hours worked over 40 in a payroll week, instead of the prior 44 hour requirement. Therefore, overtime hours for all non-exempt workers are now any hours worked over 40 in a payroll week.
Overtime pay is based on the total hours worked during a payroll week and is not required just because work is performed on Saturday or Sunday or beyond 8 hours per day.
Exclusions (exemptions) from the overtime pay regulations follow the federal Fair Labor Standards Act (FLSA). However, the minimum weekly salary that must be paid, on a guaranteed basis, to an employee who is classified as “exempt” under the executive and administrative employee exemptions is higher than the federal minimum of $455 per week.
Under New York state labor regulations, this rate has been raised from $543.75 per week, inclusive of eligible wage allowances (i.e., board, lodging, facilities, etc.) to the following rates:
$600.00 per week, effective December 31, 2013
$656.25 per week, effective December 31, 2014
$675.00 per week, effective December 31, 2015
- Non-exempt employees 40 hours
Employers are allowed to charge employees the same percentage that the credit card company charges the employer for processing tips or gratuities charged to a credit card.
- for at least three hours for one shift, or the number of hours in the regularly scheduled shift, whichever is less;
- for at least six hours for two shifts totaling six hours or less; or the number of hours in the regularly scheduled shift, whichever is less; and
- for at least eight hours for three shifts totaling eight hours or less, or the number of hours in the regularly scheduled shift, whichever is less.
- The employee’s spread of hours’ exceeds 10 hours (from the start of the day to the end of the day, including meal and break time).
- When the employee works a split shift in the workday with nonconsecutive work hours. Meal periods of one hour or less don’t count to interrupt the continuity of the shift.
- Factory workers – Must be given at least a 60 minute break for a noonday meal. For shifts starting between 1:00 p.m. and 6:00 a.m., factory workers must be given a 60 minute meal break halfway between the start and end of the shift.
- Mercantile & other workers – Must be given at least a 30 minute break for noonday meal if they work a shift of more than 6 hours which extends over the noonday meal period from 11:00 am to 2:00 pm. If they start before 11:00 a.m. and work later than 7:00 p.m., they must get an additional meal break of at least 20 minutes between 5:00 p.m. and 7:00 p.m. For shifts starting between 1:00 p.m. and 6:00 a.m., these workers must receive a 45 minute meal break at a time midway between the start and end of such shift.
- Manual workers – (with some exceptions) must be paid weekly within 7 calendar days after the week in which work was done.
- Railroad workers – must be paid on or before Thursday of each week for wages earned during 7 days ending on the preceding Tuesday
- Commission salespersons – must be paid at least once a month
- Clerical workers – must be paid at least semi-monthly (twice a month)
- Regular hourly pay rate
- Overtime hourly pay rate
- Amount of tip credit taken, if any
- Regular pay day
- Deductions required by law
- Deductions that are expressly authorized in writing by the employee for their benefit.
- Breakage, spoilage or shortage costs cannot be deducted from an employee’s wages.