As we turn the calendar to 2019, business owners and managers in New York need to be aware of the following changes:
- Minimum Wage: For New York City businesses with 11 or more employees the minimum wage is $15 an hour beginning December 31, 2018, $13.50 an hour with 10 or less but will be $15 by December 31, 2019. On Long Island and Westchester, the minimum wage starting December 31, 2018 is $12 an hour. For the rest of the state the minimum wage is $11.10 an hour. See below:
- Salary Threshold Increase: For New York City businesses with 10 or less employees, the salary basis threshold for executive and administrative employees to be classified as exempt will increase to $1,012.50 per week ($52,650 annually) beginning December 31, 2018 and $1,125.00 per week ($58,500 annually) for businesses with 11 or more employees. For businesses in Nassau, Suffolk, and Westchester counties, the salary basis threshold will increase to $900 per week ($46,800 annually). For the rest of the state, it will rise to $832.00 per week ($43,264 annually).
- Paid Family Leave: Beginning January 1, 2019, eligible employees can take up to 10 weeks of paid family leave. Additionally, the employees will now receive 55% of their average weekly wage, up to a cap of 55% of the current statewide average weekly wage of $1,357.11. The maximum weekly benefit for 2019 is $746.41. See below:
- Sexual Harassment Training: As of October 9, 2018, all employees are required to receive sexual harassment training on an annual basis. The initial training must be completed by October 9, 2019. Businesses should already have updated sexual harassment policies in place. Guidance for a model sexual harassment policy is available here.
Though at the time of the announced changes to the salary threshold increase and paid family leave many small business owners were concerned about unintended consequences the one with the greatest impact has been the minimum wage increase. Already in New York City, stores and restaurants have increased their prices to accommodate the pay increase. As $15 per hour begins to fully phase in to New York City and the surrounding suburbs it bears watching how businesses will adjust.