After checking with the NYS Department of Labor, we have come to the conclusion that the changes to the overtime rule went into effect on 31 Dec 2016. As reported, the changes to the overtime rule were slipped in and included as part of the rule changes increasing the NY minimum wage to $9.70 per hour statewide, $11 per hour in NYC, $10.50 per hour for businesses with 10 or fewer employees, $10 per hour in Nassau, Suffolk and Westchester counties and $12 per hour in NYC for fast food workers.
The new ceiling, effective 31 Dec 2016 is $727.50 per week (about $38,000 annually), statewide, $787.50 per week (about $41,000 annually) for NYC employers with less than 10 or fewer employees, and $825 per week (about $43,000 annually) for NYC employers with more than 10 employees and $750 per week (about $39,000) for employers in Nassau, Suffolk and Westchester counties.
New York's changes in the minimum salary level for exemption from overtime pay received little public attention because they were viewed as wholly subsumed by the higher federal overtime threshold that also was scheduled to have gone into effect on 31 Dec 2016. However, the Texas court's injunction stopped the federal overtime rule changes from being implemented - but NOT those of the New York Department of Labor. Accordingly, many 7-Eleven Franchisees may be caught unaware and may fail to realize that employees that only two weeks ago were exempt from overtime pay, may now be legally entitled to receive it. And, since this went into effect on 31 Dec 2016 may be entitled to back pay.
As your association, we advise you to carefully review your employee compensation practice to make certain that no wage violations inadvertently occur.