New York Employment Legislation Update: A Preview of 2025
Employers should prepare themselves for the multitude of employment laws slated to become effective in 2025. We summarize some of the key changes and offer practical advice below.
Wage and Hour (Federal)
Department of Labor's 2024 Overtime Rule Overturned
The U.S. District Court for the Eastern District of Texas vacated the Department of Labor's April 2024 rule increasing salary thresholds for the administrative, professional, and executive exemptions under the FLSA.
As described in our previous advisory, this means that the salary threshold increases that went into effect in July 2024 and that were intended to go into effect on January 1, 2025 (and thereafter) are invalid and unenforceable.
Accordingly, the DOL's prior 2019 rule currently applies, which set a salary threshold of $684 per week, or $35,568 per year for the administrative, professional, and executive exemptions. Furthermore, the "highly compensated employee" exemption salary threshold remains $107,432.
Wage and Hour (New York State and New York City)
Overtime Exemption Salary Threshold Increases
Effective January 1, 2025, New York's salary basis test for employees classified as exempt under the administrative and executive exemptions will increase as follows:
|
New York City, Westchester, and Long Island |
$1,237.50/week or $64,350.00/year (increased from $1,200.00/week or $62,400.00/year) |
|
Remainder of New York state |
$1,161.65/week or $60,405.80/year (increased from 1,124.20/week or $58,458.40/year) |
Minimum Wage Increases
Effective January 1, 2025, New York's minimum wage will increase for all employees (excluding home care aides and certain other industry employees) as follows:
|
New York City, Westchester, and Long Island |
$16.50/hour (increased from $16.00/hour) |
|
Remainder of New York state |
$15.50/hour (increased from 15.00/hour) |
Upcoming Changes to the Tip Credit for Tipped Employees
As of January 1, 2025, the allowable "tip credit" for food service workers and service employees and the minimum cash wage is scheduled to increase.
Tipped Food Service Workers
A food service worker is defined as any employee who is primarily engaged in the serving of food or beverages to guests, patrons, or customers in the hospitality industry, including but not limited to wait staff, bartenders, captains, and bussing personnel, and who regularly receives tips from such guests, patrons, or customers. The term food service worker does not include delivery workers.
This chart reflects cash wages and tip credits for food service workers, effective January 1, 2025:
|
New York City, Westchester, and Long Island |
$11.00 cash wage and $5.50 tip credit/hour |
|
Remainder of New York state |
$10.35 cash wage and $5.15 tip credit/hour |
Tipped Service Employees
A service employee is defined as an employee, other than a food service worker or fast food employee, who customarily receives tips.
This chart reflects cash wage and tip credit for service employees, effective January 1, 2025:
|
New York City, Westchester, and Long Island |
$13.75 cash wage and $2.75 tip credit/hour |
|
Remainder of New York state |
$12.90 cash wage and $2.60 tip credit/hour |
Upcoming Changes to the Meal Credit
The allowable "meal credit" for food service workers, service employees, and non-service employees will increase on January 1, 2025. It is important to note that employees covered by the Minimum Wage Order for Farm Workers will not experience a change in the meal credit.
Food Service Workers
This chart reflects the meal credit for food service workers, effective January 1, 2025:
|
New York City, Westchester, and Long Island |
$3.95/meal |
|
Remainder of New York state |
$3.95/meal |
Service Employees
This chart reflects the meal credit for service employees, effective January 1, 2025:
|
New York City, Westchester, and Long Island |
$4.60/meal |
|
Remainder of New York state |
$4.25/meal |
Non-Service Employees
A non-service employee is defined as any employee other than a service employee or a food service worker.
This chart reflects the meal credit for non-service employees, effective January 1, 2025:
|
New York City, Westchester, and Long Island |
$5.65/meal |
|
Remainder of New York state |
$5.35/meal |
Updates to the Uniform Allowance
The required "uniform allowance" for employers who require employees to wear a uniform but do not launder and maintain the uniform itself will increase on January 1, 2025. A "required uniform" is defined as clothing required to be worn while working at the request of an employer, or to comply with any federal, state, city, or local law, rule, or regulation, except clothing that may be worn as part of an employee's ordinary wardrobe. It is important to note that employees covered by the Minimum Wage Order for Farm Workers and employees of certain non profit organizations are not required to pay a uniform maintenance allowance.
This chart reflects the required uniform maintenance allowance, effective January 1, 2025:
|
|
Workweek |
Workweek Between |
Workweek |
|
New York City, Westchester, and Long Island |
$20.50/week |
$16.25/week |
$9.80/week |
|
Remainder of New York state |
$19.25/week |
$15.30/week |
$9.25/week |
New York's COVID-19 Sick Leave
New York state's COVID-19 sick leave law, which requires employers to provide at least five or 14 calendar days (depending on employer size) of sick leave for isolation or quarantine related to COVID-19, will expire on July 31, 2025.
Employees may continue to apply for leave under the NYPFLL to care for a family member who has contracted COVID-19 where the condition qualifies as a serious health condition.
Benefit and Contribution Updates to New York's Paid Family Leave Law
Effective January 1, 2025, the maximum weekly benefit for employees taking Paid Family Leave will be $1,177.32. Employees taking Paid Family Leave receive 67% of their average weekly wage, up to a cap of 67% of the current New York State Average Weekly Wage (NYSAWW). For 2025, the NYSAWW is $1,759.19, which means the maximum weekly benefit is $1,177.32. This a $26.16 increase from 2024.
The employee contribution rate and annual contribution cap will also increase in 2025. Eligible employees will contribute 0.388% of their gross wages per pay period, with the maximum annual contribution for 2025 set at $354.53. Employees earning less than the current NYSAWW of $1,757.19 will contribute less than the annual cap of $354.53, consistent with their actual wages.
New York Paid Prenatal Leave
Effective January 1, 2025, all private employers will be required to provide pregnant employees with 20 hours of paid prenatal leave per calendar year. As described in our previous advisory, the leave can be used in hourly increments for "physical examinations, medical procedures, monitoring and testing, and discussions with a health care provider related to the pregnancy." Significantly, the 20 hours of paid prenatal leave is in addition to any paid sick and safe leave to which an employee is entitled.
Retail Workplace Safety Act
As described in our previous advisory, retail employers in New York state will be required to issue workplace violence prevention policies and conduct annual workplace violence prevention training beginning March 3, 2025, under the New York Retail Safety Act.
New York Clean Slate Act
Effective November 16, 2024, the Clean Slate Act requires employers to provide notice of criminal history information received as part of a background to applicants and employees regardless of whether the employer plans to take adverse action. (See our previous advisory.)
In sum, New York employers should plan ahead, determining whether and how they will be impacted by the new laws, and prepare to update their employment policies and procedures accordingly. DWT will continue to monitor these issues and provide updates on these new laws as needed. In the meantime, if you have any questions about your company's compliance, please contact a member of the DWT employment services group.
Disclaimer
This advisory is a publication of Davis Wright Tremaine LLP. Our purpose in publishing this advisory is to inform our clients and friends of recent legal developments. It is not intended nor should it be used as a substitute for specific legal advice as legal counsel may only be given in response to inquiries regarding particular situations.