Managing overtime compliance in New York means navigating both federal and state requirements—and getting it wrong can cost you. Between salary thresholds, exemption tests, and special employee categories, overtime New York State regulations create a complex web of obligations for employers.
This guide breaks down everything you need to know about New York overtime laws heading into 2026. You’ll learn who qualifies for overtime pay, how to calculate compensation correctly, and what compliance risks to watch for. Whether you’re managing employees across multiple states or focused solely on New York operations, understanding these rules protects your business from costly wage and hour law violations.
Key Takeaways
- State law layers on top of federal: New York overtime regulations work alongside the Fair Labor Standards Act, and employers must follow whichever provides greater employee benefits
- Exemption status requires two tests: Salary thresholds alone don’t determine exempt workers—employees must pass both salary and duties tests to be exempt from overtime
- Geographic location affects requirements: Regional differences in minimum wage and salary thresholds mean compliance varies across New York City, Long Island, Westchester, and the rest of the state
- Special categories follow different rules: Not all eligible employees qualify for overtime at the same threshold—residential and farm workers have distinct requirements
- The workweek is fixed but flexible: While you can set any seven-day period as your workweek, you cannot manipulate boundaries to avoid overtime obligations
- Misclassification carries long-term risk: New York’s extended statute of limitations for unpaid overtime claims means compliance errors can surface years later with compounding penalties
Understanding New York Overtime Laws
New York overtime regulations build on the Fair Labor Standards Act (FLSA) while adding state-specific requirements. Employers must follow whichever law provides greater benefits to employees—which usually means paying close attention to both federal regulations and New York state labor law.
Here’s how New York overtime works:
- 40-hour threshold: Most non-exempt employees earn overtime pay at 1.5 times their regular rate for all hours worked beyond 40 in a single workweek
- No daily overtime: Unlike some states, New York doesn’t require overtime for long days—only for weekly hours exceeding 40
- Fixed workweek: The workweek is 168 consecutive hours (seven 24-hour periods) that you define, which doesn’t need to match the calendar week
- No averaging: You cannot average a 50-hour workweek with a 30-hour workweek to avoid overtime obligations
Different employee groups can have different workweeks, but each must remain consistent. You can’t shift workweek boundaries week-to-week to dodge overtime pay.
The New York State Department of Labor (NYSDOL) enforces state requirements. The U.S. Department of Labor handles federal violations. Both can investigate complaints, audit records, and impose penalties.
One critical rule: employees cannot waive their right to overtime compensation. An agreement to count only 8 hours per day or cap recorded hours at 40 per week is illegal under New York labor law. If someone works overtime hours, you owe overtime wages. This principle appears regularly in legal cases challenging employer practices.
Understanding New York labor laws means more than just knowing overtime rules—it requires comprehensive awareness of how wage and hour law intersects with other employment obligations.
Who Qualifies for Overtime Pay in New York
Most employees in New York are eligible for overtime pay. The law covers anyone hired or permitted to work in any occupation, with specific exemptions we’ll cover next.
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Salary Thresholds for 2026
Eligibility doesn’t depend on whether you’re paid hourly or receive a salary. The determining factors are job duties and salary level. For 2026, salary thresholds vary by region:
- New York City, Long Island, Westchester County: $64,350 annually ($1,237.50 per week)
- Rest of New York State: $60,406 annually ($1,161.65 per week)
Salaried workers earning below these thresholds are entitled to overtime pay for hours worked over 40 per week, even if they perform management or administrative duties. The salary threshold alone doesn’t create an exemption—employees must also pass a duties test.
New York minimum wage increases directly impact these salary thresholds, creating ongoing compliance challenges for employers.
Minimum Wage and Overtime Rates
As of 2026, minimum wage rates in New York are:
- NYC, Long Island, Westchester: $16.00 per hour (minimum overtime rate: $24.00)
- Remainder of state: $15.00 per hour (minimum overtime rate: $22.50)
Some workers who are exempt from overtime under federal law remain eligible under New York state law. However, they receive overtime at 1.5 times the state minimum wage rather than their actual regular rate of pay.
Special Employee Categories
Two groups follow different overtime rules:
Residential employees (live-in workers who reside in the employer’s home) qualify for overtime after 44 hours in a workweek instead of 40.
Farm workers earn overtime after 56 hours per week as of 2025. This threshold decreases gradually, reaching 40 hours by 2032.
Working nights, weekends, or holidays doesn’t automatically trigger overtime pay. Premium pay for these shifts only applies if required by your employment contract or collective bargaining agreement.
Common Overtime Exemptions for Employers
Not every employee qualifies for overtime pay. New York recognizes several exemptions from overtime requirements, most aligning with federal standards under the FLSA.
The most common exemptions fall into white-collar categories: executive employees, administrative employees, and professional employees. All must meet both a duties test and the salary threshold for their region to qualify as exempt from overtime pay.
Executive Exemptions
Executive employees must meet all of these criteria:
- Primarily manage the business or a recognized department
- Regularly direct the work of at least two full-time employees (or equivalent)
- Have authority to hire, fire, or make recommendations affecting other employees’ job status
- Earn at least the regional salary threshold
Administrative Exemptions
Administrative employees qualify when they:
- Perform office or non-manual work directly related to management or business operations
- Exercise discretion and independent judgment on significant matters
- Earn at least the regional salary threshold
This exemption often applies to HR managers, accounting staff, and similar roles. It doesn’t cover clerical workers or employees following set procedures without discretionary authority.
Professional Exemptions
Professional employees fall into two categories:
Learned professionals have advanced knowledge in a field of science or learning, typically acquired through prolonged specialized study. This includes lawyers, doctors, architects, and engineers.
Creative professionals perform work requiring invention, imagination, originality, or talent in a recognized artistic or creative field. This covers artists, writers, musicians, and similar roles.
Both types must earn the salary threshold, though creative professionals have more flexibility in how they’re compensated.
Other Common Exemptions
Additional exemptions include:
- Outside sales employees: Those spending 50%+ of work time away from the employer’s place of business making sales
- Certain commissioned retail employees: Workers at retail or service establishments who earn over half their compensation from commissions and have a regular pay rate exceeding 1.5 times minimum wage
- Computer professionals: Certain roles meeting specific duties and earning at least $58.50 per hour or the annual salary threshold
Misclassifying employees as exempt when they don’t meet all requirements creates significant liability. The burden of proving exempt status falls on you as the employer.
Understanding labor laws for salaried employees helps prevent costly misclassification errors.
Calculating Overtime Compensation Correctly
Overtime pay in New York is 1.5 times an employee’s regular rate of pay for all hours worked beyond 40 in a workweek. The calculation sounds simple, but the “regular rate” requires careful attention.
Determining the Regular Rate of Pay
For hourly employees, the regular rate is straightforward—it’s their hourly wage. An employee earning $20 per hour receives $30 per hour for overtime hours.
For salaried employees, divide the weekly salary by the number of hours it’s meant to cover. An employee hired for a 45-hour workweek at $900 per week has a regular rate of $20 per hour ($900 ÷ 45 hours). Their overtime rate is $30 per hour.
Multiple Pay Rates
When employees work at different rates during a single workweek, use a weighted average:
- Calculate total earnings for the week
- Divide by total hours worked
- Multiply by 1.5 for the overtime rate
Example: An employee works 20 hours at $15/hour and 30 hours at $25/hour in a 50-hour week:
- Total pay: (20 × $15) + (30 × $25) = $1,050
- Regular rate: $1,050 ÷ 50 hours = $21/hour
- Overtime rate: $21 × 1.5 = $31.50/hour
- Overtime owed: 10 hours × $31.50 = $315
What Doesn’t Count Toward Regular Rate
Certain payments are excluded from regular rate calculations:
- Expense reimbursements
- Discretionary bonuses (where amount and timing are at employer’s sole discretion)
- Gifts for special occasions
- Premium pay already paid for overtime, weekend, or holiday work
- Paid time off for vacation, holidays, or sick leave
Vacation hours, sick days, and holidays don’t count as “hours worked” when calculating the 40-hour threshold. Only actual time employees work triggers overtime requirements.
New York Overtime Requirements for Special Employee Categories
A few employee types follow different overtime rules than the standard 40-hour threshold.
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Residential Employees
Residential employees—those who live in their employer’s home—qualify for overtime after 44 hours in a workweek instead of 40. This category typically includes live-in domestic workers, home health aides, and similar positions. The overtime rate remains 1.5 times the regular rate of pay.
Farm Workers in New York
New York’s Farm Laborers Fair Labor Practices Act sets a different overtime threshold for agricultural workers. As of 2025, farm workers earn overtime after 56 hours per week. This threshold decreases by four hours every two years:
- 2025-2026: 56 hours per week
- 2027-2028: 52 hours per week
- 2029-2030: 48 hours per week
- 2031-2032: 44 hours per week
- 2033 onward: 40 hours per week
Farm workers also receive overtime for any hours worked on their designated day of rest, regardless of total weekly hours.
Regional Differences in New York City and Beyond
While overtime rules apply statewide, regional minimum wage differences affect overtime calculations. New York City, Long Island, and Westchester County maintain higher wage and salary thresholds than the rest of the state. Make sure you’re applying the correct regional standards to your workforce.
Overtime Compliance Risks and Penalties
Failing to pay overtime correctly exposes your business to substantial financial and legal consequences. Both state and federal agencies can pursue violations, and employees have multiple avenues to recover unpaid wages.
State-Level Penalties
The New York State Department of Labor can impose civil penalties up to $1,000 per violation. These add up quickly when multiple employees or pay periods are involved. The state also requires payment of all unpaid overtime wages plus interest.
Federal FLSA Violations
Violations of federal overtime laws carry penalties up to $10,000 per violation. The U.S. Department of Labor can also seek back wages on behalf of employees and impose additional fines for willful or repeated violations.
Employee Claims for Unpaid Overtime
Employees in New York have six years to file claims for unpaid overtime under state law—one of the longest statutes of limitations in the country. Federal claims under the FLSA typically allow two years, or three years for willful violations.
Successful claims can result in:
- Payment of all unpaid overtime wages
- Liquidated damages equal to the amount owed (effectively doubling the judgment)
- Attorneys’ fees and court costs
- Pre-judgment and post-judgment interest
Most overtime cases settle before trial, but resolution timelines vary widely. Simple cases may settle within months, while complex matters involving multiple employees or disputed classifications can take one to two years or longer.
Common Compliance Mistakes
Employers most often run into trouble with:
- Misclassifying employees as exempt when they don’t meet both the salary and duties tests
- Failing to include bonuses, commissions, or other compensation in regular rate calculations
- Not paying for unauthorized overtime work (if an employee works overtime, you owe overtime pay regardless of approval)
- Attempting to use compensatory time off instead of overtime pay for non-exempt employees
- Averaging hours across multiple workweeks
The burden of proof for exempt classification falls on you. When claims arise, you’ll need to demonstrate that exempt employees meet all requirements.
Understanding compliance risk helps employers build proactive systems rather than reactive damage control.
Technology Solutions for Overtime Compliance
Managing overtime compliance manually becomes increasingly difficult as your workforce grows or spans multiple locations. Technology offers practical solutions for tracking time, calculating wages, and maintaining audit-ready records.
Modern time and attendance software automatically captures work hours, flags approaching overtime thresholds, and calculates overtime pay based on federal and state regulations. These systems reduce calculation errors and provide documentation if disputes arise.
For multi-state employers, compliance complexity multiplies. Different states have different overtime thresholds, exemption criteria, and calculation methods. Platforms designed for multi-state compliance help you navigate varying labor laws without maintaining separate tracking systems for each location.
Automation also addresses common pain points:
- Real-time alerts when employees approach overtime thresholds
- Automatic application of regional wage rates and rules
- Digital recordkeeping that satisfies Department of Labor requirements
- Simplified reporting for payroll processing
The right system doesn’t just prevent violations—it also improves workforce planning. When you can see overtime trends across teams and locations, you can make better scheduling decisions and control labor costs proactively.
Compliance automation transforms how businesses handle regulatory requirements, turning manual tracking into systematic processes. Instead of monitoring regulations manually, you get automatic alerts when rules change and guidance on what actions you need to take.
Mosey Keeps You Compliant with New York Labor Laws
New York overtime requirements demand attention to detail—from correctly classifying employees to calculating weighted averages for multiple pay rates. The consequences of getting it wrong include back wages, penalties from both state and federal agencies, and potential lawsuits with six-year lookback periods.
Focus on these priorities: understand which employees truly qualify for exemptions, track all hours worked accurately, and apply the correct overtime rate for your region. When special categories like residential employees or farm workers are part of your workforce, make sure you’re applying the right hourly thresholds.
Compliance gets more complex when you’re managing teams across multiple states. Each jurisdiction has its own rules, and staying current with changing regulations requires ongoing monitoring. That’s where compliance automation makes the difference—transforming compliance from a manual tracking burden into a systematic, manageable process.
Ready to simplify multi-state compliance? Mosey tracks labor law changes across all your locations and tells you exactly what actions to take. See for yourself and book a free consultation today.
FAQ: Navigating Overtime—New York State Laws for Employers
What are the rules for overtime pay in NY?
New York requires employers to pay non-exempt employees 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. The overtime threshold is 44 hours for residential employees and 56 hours for farm workers (as of 2025). Employers must pay overtime regardless of whether it was authorized in advance, and employees cannot waive their right to overtime compensation.
What is the 4 hour rule in NY?
The 4-hour rule in New York is a call-in pay requirement, not an overtime rule. When non-union employees report to work as scheduled or are called in for work, they must receive at least four hours of pay at the minimum wage, even if sent home early. Restaurant and hotel workers receive three hours of call-in pay instead of four. This applies to showing up for scheduled shifts, not to overtime calculations.
What Is Overtime Pay in New York?
Overtime pay in New York is compensation at 1.5 times an employee’s regular hourly rate for hours worked beyond 40 in a single workweek. For example, an employee earning $20 per hour receives $30 per hour for overtime hours. The regular rate includes hourly wages, commissions, and most bonuses, but excludes discretionary bonuses, expense reimbursements, and premium pay already provided for weekend or holiday work.
Who Must Pay Overtime in New York?
Most employers in New York must pay overtime to non-exempt employees, including private businesses, non-profit organizations, private and charter schools, and non-teacher school district employees. Federal, state, and local government employers are exempt from state overtime requirements but may be covered under federal law. Employers must follow whichever law—federal or state—provides greater benefits to employees.
