📅 2026 Update: Changes to Employment Law in New York State

Since the original article was written, several key changes have impacted employment law in New York State and beyond. These changes affect wages, overtime regulations, and the classification of workers. The details provided below will outline the most important updates that could influence both employees and employers in the current legal landscape.

⚖️ Overtime Salary Thresholds

In November 2024, a federal court vacated a rule that aimed to increase the overtime salary threshold. As a result, the threshold reverted to its 2019 level of $684 per week or $35,568 annually. This means that many workers who previously fell under this exemption may now be eligible for overtime pay again.

🔒 FTC's Non-Compete Rule

A significant change occurred when a federal court blocked the Federal Trade Commission's 2024 rule to ban non-compete agreements nationwide. This rule was officially removed from regulations on February 12, 2026. As a result, many employers may continue to enforce non-compete clauses within employment contracts.

🏢 California Minimum Wage Increase

California has made notable adjustments to its minimum wage laws. Effective January 1, 2026, the minimum wage increased to $16.90 per hour, up from $16.50 in 2025. This change will affect many workers and employers within the state, aligning with the state's ongoing commitment to adjusting wages based on inflation.

💼 Exempt Employee Salary Threshold

Alongside the minimum wage increase, California also raised the annual salary threshold for exempt employees. As of January 1, 2026, this threshold is now set at $70,304 annually, or $5,858.67 monthly. Employees classified as exempt must meet this salary requirement to maintain their status.

📌 Key Points Summary

  • Overtime threshold reverted to $684 per week as of November 2024.
  • FTC's non-compete rule was blocked and removed in February 2026.
  • California's minimum wage increased to $16.90 per hour in 2026.
  • The exempt employee salary threshold in California is now $70,304 annually.
  • These changes may impact employees' rights and employers' obligations.

💡 Tips for Navigating Employment Law

It's important to review your specific situation with an attorney to understand its implications fully.

📊 Know Your Rights

Stay informed about your rights under New York State labor laws. Changes in regulations can affect your eligibility for overtime, minimum wage, and other employment benefits.

🔍 Understand Exemptions

If you are classified as an exempt employee, ensure that your salary meets the new thresholds. In California, this is now $70,304 annually. If not, you may be entitled to overtime pay.

📅 Update Workplace Notices

Employers in California must post the updated minimum wage notice by January 1, 2026. This ensures that employees are aware of their rights regarding pay.

📈 Keep Track of Changes

Labor laws often change due to inflation and other factors. Make a point to stay updated on these changes, especially if you work in California where wages are adjusted annually.

📜 Seek Government Resources

Utilize resources from the U.S. Department of Labor and the California Department of Industrial Relations for guidance on employment law. These organizations offer valuable information and support for workers and employers alike.

❓ Frequently Asked Questions

❓ What is the current minimum wage in California?

The minimum wage in California is currently $16.90 per hour as of January 1, 2026. This increase reflects ongoing adjustments to inflation.

🔄 How often does California adjust its minimum wage?

California adjusts its minimum wage annually based on inflation. If inflation exceeds 7%, increases can be up to 3.5% as measured by the national Consumer Price Index.

⚖️ What happened to the FTC's non-compete rule?

The FTC's rule to ban most non-compete agreements was blocked by a federal court before it could take effect. It was officially removed from the regulations on February 12, 2026.

📈 How can I find out if I am eligible for overtime pay?

To determine your eligibility for overtime pay, check if your salary meets the current threshold of $684 per week. If you are classified as non-exempt, you may qualify for overtime.

💼 What should employers do regarding workplace postings?

Employers in California are required to update their workplace postings to reflect the new minimum wage by January 1, 2026. This ensures compliance with labor laws.

📝 Where can I find additional resources on employment law?

For further information on employment law, the U.S. Department of Labor and the California Department of Industrial Relations offer extensive resources and guidance on various topics, including minimum wage and employee rights.

⚖️ Recent Court Cases Related to Employment Law

Several recent court rulings have had significant implications for employment law, including changes to overtime regulations and non-compete agreements. These decisions may affect both employees and employers in New York State and California.

You can browse more rulings on the news page to stay updated on the latest developments in employment law.

End of October 2026 Update





What is the NYS Department of Labor?


 



• The NYS Department of Labor (or New York State Department of Labor) is the state-run government agency concerned with implementing labor law in New York. The NYS Department of Labor is the organization responsible for administering (and subsequently delivering) unemployment benefits to individuals who were laid-off in the state of New York. Additionally, the NYS Department of Labor is responsible for publishing labor statistics, instituting workplace safety laws, and enforcing laws dealing with wages and hours.



•  Similar to other state labor agencies, the NYS department of labor is the governmental agency responsible for upholding all labor laws as well as instituting and transferring unemployment benefits to those that qualify.

NYS Department of Labor: A Brief Summary


• In addition to the aforementioned services provided by the NYS Department of Labor, the agency will also provide residents of New York with resources to expedite their job search.




How to Qualify for Unemployment Benefits through the NYS Department of Labor:




• Before receiving unemployment benefits from the NYS Department of Labor, you will be required to verify your employment status, meaning you must affirm that you worked in the state of New York and were subsequently terminated for a non-egregious violation of your employment contract.



• In addition to the basic eligibility requirements, you must also have worked in at least two calendar quarters during your base period. Furthermore, to be eligible for unemployment benefits through the NYS Department of Labor, you must have earned a minimum of $1,600 in wages in one of the calendar quarters. Your total wages earned during your base period must be one and one-half times greater than wages earned in your highest quarter.



• Once you have qualified for unemployment benefits through the NYS Department of Labor, the agency will calculate your pay rate based on their alternate base method.



• By law, the NYS Department of Labor will transfer unemployment benefits if you have enough employment to establish a claim, have lost employment through a no-fault termination, and are willing to work. The candidate must be actively seeking employment to receive benefits.



• Once you have reviewed the NYS Department of Labor’s rules and regulations regarding unemployment benefits you must then file a claim. You should file your claim during your first of partial or total unemployment; if you wait you may lose benefits.




• To apply for unemployment benefits through the NYS Department of Labor simply visit their website, located at www.labor.ny.gov and go to the “benefits online page” You may also apply in person or on the phone by calling the NYS department of labor at their claim center (1-888-783-1370.)