Manika 
(C): Unsplash
You clock in. You’re putting in the hours. When payday arrives, though — am I getting what I deserve, according to the law?
But the answer for thousands of workers throughout New York could be no. But it’s not always bad employers or missing paychecks — sometimes it’s a subtle technical classification snafu that deprives workers of overtime rights without their realising it.
What you need to know.
What Is the New York Salary Threshold for 2026?
Not all employees who are paid on a salary basis are “exempt” from overtime under New York’s labour law. Your employer is required to hit a specific salary cap — and it varies by location in New York.
If you work for the government in NYC, Nassau, Suffolk or Westchester County, you must be making at least $1,275 per week (or $66,300 per year) to be considered overtime-exempt.
Outside of New York State: It is a little less at $1,199 per week, or $62,348 per year.
If your paycheck is less than these amounts, your employer is breaking the law if they claim you’re exempt. New York overtime rules apply to all employees, regardless of what their job title is, and how their contract is worded.
A Job Title Doesn’t Make You Exempt — Your Duties Do
Many workers are surprised at this. Managerial and Coordinator titles on your business card don’t mean you are no longer protected from overtime. In both FLSA overtime law and New York state law, your actual day-to-day work needs to be consistent with the law.
There are three categories of exemptions:
Executive Exemption: Must truly and actually be in charge of a department or the business and regularly supervise at least two full-time workers and have an actual vote in hiring or firing. To be a “team lead” who is doing the same thing most of the time? That is most likely not a count.
Administrative Exemption: Your main job function needs to be in a non-manual capacity that relates to the business and requires independent judgment on important issues on a frequent basis. Using a script or normal procedures is no good.
Professional Exemption: Advanced (specialised) knowledge must be required for the position and must be learned through extended formal training. Don’t think most office workers; think licensed attorneys, physicians or certified accountants.
Your Pay Structure Also Has to Pass a Test
If your salary is above the threshold, wage and hour laws in New York still require your salary to be paid on a “salary basis.” That means:
- Your pay must be a set sum, and not dependent on your workload.
- You will receive your full weekly wages for a week of work – no matter how little, and even if you just do one hour.
- Discretionary bonuses and commissions are typically not included in the minimum, and must be guaranteed base pay.
That’s a red flag to investigate if your employer docks your pay when you leave early or if they count performance bonuses towards the salary floor.
What Happens If You’ve Been Misclassified?
Under employee classification rules in New York, if you do not meet the salary threshold or your job duties are not one of the exemptions, you must be treated as a non-exempt employee. This means 1.5 times your base hourly wage for overtime hours (those worked beyond 40 hours per workweek).
The math can quickly add up. If this employee is misclassified as exempt, he or she may be missing hundreds of dollars of overtime pay each month, simply because of a misclassification.
To find out the situation:
- Get the latest pay stubs and figure out your weekly salary.
- Check with this $1,275 (or $1,199) figure from your area
- Record what you actually do in your daily work, not as outlined in your contract.
- Look at the tasks and determine if they are actually an exemption category.
Don’t Let Misclassification Slide
The reason for the employment law updates in New York in 2026 is that employers are still required to abide by the strict overtime protection rules. Just because you are paid on a salary basis, or given an employment contract, does not mean that your rights are taken away — the law is very clear on what it means.
One of the first things that may occur to workers upon realising their employers classified them as a fake employee is that they may be able to obtain payment for unpaid overtime dating back years. If you are not earning enough for the exempt classification, or if your exempt job description falls short of the exemption tests, it is not some murky area that needs some clarification; it is a violation of the requirements for workplace compliance in New York.
Review your pay. Know your duties. And if something doesn’t feel right, you have every right to ask questions.
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