New York law requires employers to pay employees overtime (11/2 times their regular rate of pay) if they work over 40 hours in a week.
Under New York wage orders, bona fide administrative, executive, and professional employees are exempt from state minimum wage and overtime requirements (NY Code R. and Regs. Tit. 12 Sec. 142-2.14). For exemption, an employee must pass three tests:
• Salary level test
• Salary basis test
• Duties test
For outside sales personnel, there is only a duties test.
Salary. Exempt white-collar employees must perform certain types of work, and they must generally be paid on a salary basis and receive a minimum salary. To qualify as a salaried employee, an employee must be paid a predetermined amount each pay period. The amount paid may not be reduced because of a variation in the quality or quantity of the work performed. With limited exceptions, the employee must receive his or her full salary for any week in which he or she performs any work, without regard to the number of days or hours worked. However, the employee need not be paid for any workweek in which he or she performs no work. Administrative and professional employees may be paid on a fee basis, rather than on a salary basis, and still qualify for exemption as long as the fee payment meets the minimum salary threshold.
Duties. In addition to passing the salary level and salary basis tests, employees must perform certain duties in order to be classified as exempt.