(650) 332-8623New York State Overtime Law: Your Guide to Rates, Statutes, Calculations, and More (2025)
This guide has everything you need to know about New York State overtime laws for 2025, including rates, thresholds, statutes, and much more.
1.5x
New York's Primary Overtime Pay Rate
- New York labor law follows federal overtime law, which mandates that eligible employees must be paid 1.5 times their regular rate of pay for hours worked beyond 40 in a workweek.
- New York State does not impose a daily overtime threshold but applies the 40-hour per week rule.
40 hours / week
Threshold to Receive Overtime in New York
- New York’s overtime eligibility aligns with the federal Fair Labor Standards Act (FLSA). Employees are entitled to overtime pay when they work over 40 hours in a workweek, regardless of the number of hours worked in a single day.
New York State Labor Law, Section 651
The Main Overtime Statute(s) in New York
- New York’s overtime laws are governed by the New York State Labor Law, Section 651. This section outlines overtime eligibility and pay conditions, deferring to the federal FLSA for most requirements. However, the state law specifies certain details regarding exempt occupations.
NYSDOL
New York State Department of Labor is Responsible for Enforcing Overtime Laws in New Yorrk
The NYSDOL is responsible for enforcing overtime laws in New York. Employees who believe they have not been paid proper overtime can file complaints with the NYSDOL or pursue legal action under the FLSA.
How to Calculate Overtime Pay in New York
To calculate overtime pay in New York, an employee’s regular rate of pay must first be determined. This includes hourly wages, commissions, and other forms of compensation. Overtime is calculated at 1.5 times the regular hourly rate for all hours worked beyond 40 in a workweek. For instance:
- An employee earning $20/hour who works 45 hours in a week would receive 5 hours of overtime pay at $30/hour, totaling $150 in overtime pay.
- Total weekly earnings: $800 (base) + $150 (overtime) = $950.
Let me know if you need further modifications or additional examples!
Who's Eligible For Overtime Pay in New York State?
Most hourly employees in New York qualify for overtime pay when they exceed 40 hours in a week. Certain live-in “residential” employees earn overtime after 44 hours/week under state law.
As of 2025, salaried workers earning below New York’s overtime salary threshold are entitled to overtime pay. This threshold is about $60,406 per year for most of the state (and $64,350 per year in NYC, Long Island, and Westchester).
Employees in executive, administrative, or professional roles are generally exempt from overtime if they meet the state’s criteria. These “white-collar” employees must primarily perform high-level duties and (for executive/administrative roles) earn at least the minimum salary set by New York to qualify as overtime-exempt.
arm laborers qualify for overtime pay after working more than 56 hours in a week (this overtime threshold will gradually phase down to 40 hours by 2032)
Employees spending 50%+ of their work time away from the employer’s business to make sales are classified as outside salespersons and are exempt from overtime pay.
Certain technology workers (e.g. software engineers) are exempt from overtime if their primary duties involve advanced computer systems/software and they earn at least $684 per week (or $27.63 per hour)
Most healthcare industry employees (nurses, technicians, etc.) qualify for overtime pay; however, licensed physicians (doctors) are considered learned professionals and do not receive overtime.
Some retail sales employees paid mainly on commission can be overtime-exempt under a special rule. To qualify, they must work at a retail/service establishment, have a regular pay rate above 1.5× the minimum wage, and earn over half of their income from commissions.
Handle New York overtime calculations and payments easily with Workyard
See how it works
New York vs. Federal Overtime Laws Compared
40 Hours / weekNew York Overtime Threshold
New York State requires overtime pay for most employees after exceeding 40 hours in a workweek. Certain exceptions apply for specific industries and roles, such as farm workers and salaried employees earning above the state threshold.
40 Hours /weekFederal Overtime Threshold
Under the federal Fair Labor Standards Act (FLSA), all non-exempt employees are entitled to overtime pay for all hours worked in excess of 40 per workweek.
For the FLSA’s purposes, a “workweek” is defined as a fixed and regularly-occurring period of 168 hours, or seven consecutive 24-hour days. These workweeks may be set for any seven-day stretch and do not need to correspond to or coincide with ordinary calendar weeks.
1.5x New York Overtime Rate
Both New York State and federal laws require overtime pay at a rate of 1.5 times the employee’s regular pay for hours worked over 40 in a workweek.
1.5xFederal Overtime Rate
The FLSA stipulates overtime rates of 1.5 times an employee’s regular rate of pay. There are no additional or higher rates for working more hours or for specified professions.
$58,656/yearNew York Overtime Threshold for Salaried Employees
Starting January 1, 2025, salaried employees earning below the state threshold are eligible for overtime. For most of New York State, the threshold is $58,656/year, with different thresholds for regions like New York City and Long Island.
$58,656 / yearFederal Overtime Threshold for Salaried Employees
Starting January 1, 2025, the federal wage threshold exempting roles from overtime pay is set at $1,128 per week, equivalent to $58,656 per year.
The FLSA also stipulates special thresholds for salaried employees in certain territories as well, with much lower thresholds (between $380 and $455 per week) for Puerto Rico, Guam, the U.S. Virgin Islands, the Northern Mariana Islands, and American Samoa.
New YorkRoles Exempt from Overtime
Exemptions in New York State align with the FLSA, including:
- Executive, administrative, and professional employees earning above the threshold
- Computer-related employees
- Outside sales employees
- Highly compensated workers earning more than $58,656/year.
FederalRoles Exempt from Overtime
Federal overtime law exempts certain roles from overtime pay:
- Executive, administrative, and professional employees earning more than the threshold
- Computer-related employees
- Outside sales employees
- Highly compensated workers earning more than $151,164 per year, of which at least $1,128 must be paid on a salary or fee basis per week
Misconceptions About NYS Overtime Laws
It is a common misconception that paying an employee a salary automatically exempts them from overtime laws.
Only salaried employees meeting specific job duty and pay criteria (e.g., executive, administrative, professional roles) are exempt from overtime under the US labor laws.
Some believe that farm workers in New York are not entitled to overtime pay.
Farm workers qualify for overtime after working more than 56 hours per week. This threshold will gradually decrease, reaching 40 hours by 2032, in compliance with US labor laws governing farm laborers.
It’s commonly assumed that earning more than the federal threshold exempts a worker from overtime pay.
Salary alone doesn’t guarantee exemption. Even if a worker earns more than the federal threshold ($58,656 per year), they may still be eligible for overtime if their duties do not meet the exemption criteria.
Many people believe that New York follows the same overtime laws as the federal government.
New York State has specific overtime laws that go beyond federal guidelines, particularly regarding the salary thresholds and certain industry-specific exemptions.
A common misunderstanding is that independent contractors are not covered by overtime laws.
Misclassifying employees as independent contractors to avoid paying overtime can violate US labor laws. True independent contractors, however, are not covered by overtime laws.
Penalties for Overtime Noncompliance in NY
$1,000 / violationFailure to Pay Correct Overtime
Employers who fail to pay overtime owed to employees may face civil monetary penalties of up to $1,000 for each violation. Employers must also pay unpaid overtime wages, with back wages often supervised by the Wage and Hour Division of the U.S. Department of Labor.
$10,000 + ImprisonmentWillful Violations of the FLSA
Employers who intentionally violate the FLSA by misclassifying employees or ignoring overtime obligations may be fined up to $10,000 for each offense. Repeat offenders may face criminal prosecution, with a second conviction potentially resulting in imprisonment.
$20,000 + Imprisonment (Felony)Willful or Repeat Violations
Willful or repeat overtime violations can trigger felony charges, fines up to $20,000, and potential jail time. Wage theft violations are treated harshly, with criminal sanctions imposed for repeat offenses within six years.
200% of Unpaid WagesWillful or Egregious Violations
Employers who commit willful or egregious overtime violations may face civil penalties up to 200% of the unpaid wages, in addition to the required back wages and liquidated damages.
Avoid overtime pay penalties and stay compliant with Workyard
See how it works
Navigating Overtime Requirements in New York
Know What to Do as an Employer
Employers must comply with New York’s overtime laws, paying non-exempt employees 1.5 times their regular rate for hours worked over 40 in a workweek. Properly classify employees as exempt or non-exempt, review job duties regularly, and keep accurate time records. Industry-specific regulations may apply, such as in construction or hospitality.
Know Your Rights as a Worker
Non-exempt workers in New York are entitled to overtime pay at 1.5 times their regular rate for hours worked over 40 in a week. Track your hours and report discrepancies to HR. If your overtime pay is violated, you can file complaints with the New York State Department of Labor or pursue legal action for back wages.
Common Overtime Pay Challenges for Employers in New York
- Misclassification of Employees: Misclassifying employees as exempt can lead to fines and unpaid overtime claims.
- Inadequate Recordkeeping: Failure to track hours accurately results in disputes and potential penalties.
- Incorrect Overtime Calculations: Failing to include bonuses, commissions, or tips in overtime calculations can lead to underpayment.
- Industry-Specific Complexities: Industries like construction and hospitality have unique overtime rules, increasing compliance complexity.
Overtime Pay Solutions for Employers in New York
- Regular Audits: Conduct audits to ensure employees are properly classified and payroll is accurate.
- Automated Timekeeping: Use time-tracking software to reduce errors and ensure compliance.
- Consult Legal Experts: Seek guidance on industry-specific compliance and complex overtime situations.
- HR and Management Training: Provide regular training on overtime rules to ensure consistent enforcement.
General Best Practices for New York Overtime Laws
- Define Overtime Policies: Develop clear policies and communicate them to employees to ensure understanding.
- Regular Classification Reviews Review employee classifications periodically to avoid misclassification errors.
- Use Time Management Systems: Implement automated systems to track hours and reduce manual errors.
- Stay Updated on Labor Laws: Monitor changes in New York labor laws to ensure ongoing compliance.
- Engage in Payroll Audits: Regularly audit payroll records to ensure correct overtime calculations and prevent penalties.
Explore other labor law articles:
- Workers Compensation Laws
- Tennessee Labor Laws
- Georgia Labor Laws
- Arkansas Labor Laws
- Oklahoma Labor Laws
Final Thoughts
Navigating New York labor laws and New York break laws can be complex, but understanding the rules surrounding overtime pay, classifications, and employee rights is crucial for compliance. By staying informed and implementing the right tools and practices, you can avoid costly penalties and ensure smooth business operations.
Workyard simplifies compliance with labor laws by offering accurate time tracking, automated overtime calculations, and detailed reporting. This helps businesses save money, reduce errors, and maintain compliance.
Take control of your compliance challenges today by exploring how Workyard can streamline your operations and protect your business. Try Workyard now to ensure you’re always aligned with labor laws and other labor regulations.
Overtime pay in New York is calculated at 1.5 times the regular hourly rate for all hours worked beyond 40 in a workweek. This includes non-exempt employees who work overtime. For salaried employees, the overtime calculation should be based on their weekly salary divided by the number of hours they typically work in a week.
Yes, construction workers in New York are subject to specific overtime regulations. Construction employees must be paid overtime if they work more than 40 hours in a week. Additionally, certain classifications within the construction industry may be exempt from overtime based on their job duties.
Yes, part-time employees in New York are entitled to overtime pay if they are non-exempt and work over 40 hours in a workweek. Part-time status does not exempt employees from receiving overtime pay for hours worked beyond the standard 40-hour workweek.
Yes, under New York break laws, employees working 6 or more hours are entitled to at least a 30-minute unpaid meal break. However, this break period is not considered paid time, and employers are not required to offer additional breaks beyond the meal period unless specified in the employment agreement or collective bargaining agreements.
If an employee claims they were not paid overtime, the first step is to review the employee’s hours worked and pay records to ensure the claim is accurate. If the claim is valid, you must pay the back wages owed, including any overtime pay. If the issue persists, the employee can file a complaint with the New York State Department of Labor or seek legal action for wage theft. It is essential to address the issue promptly to avoid penalties.
