Overtime Laws in New York 2026: Pay Rates, Exemptions & Tax Deduction (2026)
⚠️Informational only — not legal or tax advice.
This guide explains New York overtime laws 2026
Last verified: February 26, 2026
Next scheduled review: May 25, 2026
Table of Contents
- New York Overtime Laws at a Glance (2026)
- Does New York Have Its Own Overtime Law?
- How Overtime Pay Is Calculated in New York
- Who Is Exempt from Overtime in New York?
- Federal Overtime Tax Deduction: “No Tax on Overtime” (2025–2028)
- Can an Employer Require Overtime in New York?
- Industry-Specific Overtime Rules in New York
- How to File an Overtime Wage Complaint in New York
- Penalties for Overtime Violations in New York
- New York Overtime Law Updates (2025–2026)
- Frequently Asked Questions
- Sources and Verification
New York Overtime Laws at a Glance (2026)
| Details | |
|---|---|
| Overtime threshold | 40 hours/workweek (most employees); 44 hours/workweek (residential employees) |
| Overtime pay rate | 1.5× regular rate of pay |
| Double time | No |
| 7th consecutive day rule | No |
| State minimum wage (2026) | $17.00/hour — NYC, Nassau, Suffolk, Westchester; $16.00/hour — rest of state |
| Exempt salary threshold — Executive & Administrative (2026) | NYC, Nassau, Suffolk, Westchester: $1,275.00/week ($66,300/yr); Rest of state: $1,199.10/week ($62,353.20/yr) |
| Exempt salary threshold — Professional (2026) | Federal floor applies: $684.00/week ($35,568/yr) |
| Daily overtime | No — weekly calculation only |
| Spread-of-hours pay | Yes — 1 extra hour at minimum wage when workday spans more than 10 hours |
| Residential employee rule | Overtime after 44 hours/week (not 40) |
| Agricultural overtime (2026) | After 52 hours/week (phased reduction to 40h by 2032) |
| State enforcement agency | New York State Department of Labor (NYSDOL), Division of Labor Standards |
| Federal enforcement | U.S. DOL Wage and Hour Division |
| Overtime tax deduction (federal) | Up to $12,500/yr (2025–2028) — FLSA-covered nonexempt workers |
| Statute of limitations | 6 years under NYLL § 198; 2 years FLSA (3 if willful) |
Governing law: New York Labor Law (NYLL) § 650 et seq.; 12 NYCRR Parts 142–146 (Wage Orders); Fair Labor Standards Act, 29 U.S.C. § 207 Last verified: February 26, 2026
Does New York Have Its Own Overtime Law?
New York has its own overtime law under New York Labor Law § 650 et seq. and its implementing regulations, principally 12 NYCRR Part 142 (Minimum Wage Order for Miscellaneous Industries and Occupations). New York’s rules provide broader protections than the federal Fair Labor Standards Act (FLSA) in several significant respects.
When New York law and the federal FLSA differ, the standard more favorable to the employee applies.
Key differences between New York and federal overtime law:
- Higher exempt salary thresholds for executives and administrators: New York sets its own, much higher weekly salary thresholds for the executive and administrative exemptions. In 2026, those thresholds reach $1,275.00/week in New York City and surrounding counties and $1,199.10/week in the rest of the state — roughly double the federal $684/week floor (12 NYCRR § 142-2.14).
- No state salary floor for the professional exemption: New York does not establish a separate minimum salary for the professional exemption. The federal threshold of $684/week therefore governs that category. Employers must meet whichever requirements offer greater employee protection in each exemption category.
- Residential employees: Under 12 NYCRR § 142-2.2, employees who reside on their employer’s premises earn overtime after 44 hours/workweek, not 40. This is a New York-specific rule with no federal equivalent.
- Agricultural workers — state overtime required: Federal law exempts most farm workers from overtime. New York requires overtime for agricultural workers; the threshold in 2026 is 52 hours/week, continuing a phased reduction toward 40 hours/week by 2032 (NY Labor Law § 671).
- Spread-of-hours pay: Employees covered by 12 NYCRR Part 142 who work a shift that spans more than 10 hours from start to end of their workday receive one additional hour of pay at the applicable minimum wage. This is separate from and in addition to overtime (12 NYCRR § 142-2.4).
- Broader FLSA exemption coverage removed: Under 12 NYCRR § 142-2.2, the FLSA’s § 13(a)(2) exemption (certain small retail and service establishments) and § 13(a)(4) exemption (certain amusement and recreational establishments) do not apply in New York. Employees at those establishments are entitled to New York overtime.
- Longer statute of limitations: Employees have six years to bring a wage claim under NYLL § 198, compared to two years under the FLSA (three for willful violations).
State statute: NY Labor Law § 650 et seq. Official text: https://www.nysenate.gov/legislation/laws/LAB/A19 Wage order: 12 NYCRR Part 142 Official text (PDF): https://dol.ny.gov/system/files/documents/2025/10/cr142.pdf Federal statute: Fair Labor Standards Act, 29 U.S.C. § 207 U.S. DOL overtime page: https://www.dol.gov/agencies/whd/overtime
How Overtime Pay Is Calculated in New York
What Is a “Workweek”?
Under the FLSA and New York’s wage orders, a workweek is a fixed, regularly recurring period of 168 consecutive hours (seven consecutive 24-hour periods). The employer may designate any day and time as the start of the workweek — it does not need to begin on Monday or align with the calendar week.
Each workweek stands alone. An employer cannot average hours across two or more workweeks to avoid overtime. If an employee works 50 hours one week and 30 the next, overtime is owed for the first week regardless of what follows.
Source: 29 C.F.R. § 778.104–778.105; 12 NYCRR § 142-2.2
Pay Rates
Under New York law (12 NYCRR § 142-2.2) and the FLSA, nonexempt employees in New York earn overtime at the following rate:
Time-and-a-half (1.5× regular rate):
- Hours worked over 40 in a workweek (most employees)
- Hours worked over 44 in a workweek (residential/live-in employees)
New York does not require daily overtime. Working a long single shift — even 12 or 14 hours — does not trigger overtime unless total hours in the workweek exceed the applicable threshold.
What Counts as the “Regular Rate of Pay”
The regular rate is not necessarily the same as the hourly wage. Under the FLSA (29 C.F.R. § 778.108) and 12 NYCRR § 142-2.18, the regular rate includes:
- Base hourly rate or salary equivalent
- Non-discretionary bonuses and incentive pay
- Shift differentials
- Commissions
- Piece-rate earnings
The regular rate does not include:
- Discretionary bonuses (e.g., holiday gifts at the employer’s sole discretion)
- Employer contributions to benefit plans
- Vacation, holiday, or sick pay for periods when no work is performed
When an employee is paid on a salary, piece-rate, or any basis other than an hourly rate, New York requires the regular hourly rate to be determined by dividing total hours worked during the week into the employee’s total earnings for that week (12 NYCRR § 142-2.18).
Spread-of-Hours Pay — New York Only
Under 12 NYCRR § 142-2.4, employees covered by the Miscellaneous Wage Order who work a day that spans more than 10 hours from the start to the end of the workday are entitled to one extra hour of pay at the applicable minimum wage. The trigger is the total elapsed time of the workday — not continuous hours worked. Spread-of-hours compensation is separate from overtime and is not included in the regular rate calculation.
Source: 12 NYCRR § 142-2.4; NYSDOL Spread of Hours guidance: https://dol.ny.gov/spread-hours
Calculation Examples
Example 1 — Weekly Overtime, NYC / Nassau / Suffolk / Westchester (2026 minimum wage: $17.00/hr)
An employee earns $17.00/hour and works 48 hours in one workweek:
- Regular pay: 40 hours × $17.00 = $680.00
- Overtime pay: 8 hours × ($17.00 × 1.5) = 8 × $25.50 = $204.00
- Total weekly gross pay: $884.00
Example 2 — Weekly Overtime, Rest of New York State (2026 minimum wage: $16.00/hr)
An employee earns $16.00/hour and works 48 hours in one workweek:
- Regular pay: 40 hours × $16.00 = $640.00
- Overtime pay: 8 hours × ($16.00 × 1.5) = 8 × $24.00 = $192.00
- Total weekly gross pay: $832.00
Example 3 — Residential Employee (Live-In, 2026 minimum wage: $17.00/hr)
A live-in housekeeper earning $17.00/hour works 50 hours in one workweek:
- Regular pay: 44 hours × $17.00 = $748.00
- Overtime pay: 6 hours × ($17.00 × 1.5) = 6 × $25.50 = $153.00
- Total weekly gross pay: $901.00
For current New York minimum wage rates by region, see the New York Minimum Wage page.
Source: 12 NYCRR § 142-2.2; 12 NYCRR § 142-2.18; 29 C.F.R. § 778.108–778.122 NYSDOL Overtime FAQ: https://dol.ny.gov/system/files/documents/2021/03/overtime-frequently-asked-questions_0.pdf NYSDOL minimum wage: https://dol.ny.gov/minimum-wage
Who Is Exempt from Overtime in New York?
Not all employees in New York are entitled to overtime pay. To be exempt, an employee must generally satisfy requirements under both federal and state law. Failing either set of tests means the employee is entitled to overtime.
Federal FLSA Exemption Requirements
To be exempt from overtime under the FLSA, an employee must meet all three of these criteria:
1. Salary basis test: Paid a predetermined, fixed salary not subject to reduction based on the quality or quantity of work.
2. Salary level test: Earn at least $684 per week ($35,568 per year).
3. Duties test: Perform specific job duties in one of these categories:
| Exemption | Key duty requirement |
|---|---|
| Executive | Manages the enterprise or a recognized department; customarily directs the work of 2+ employees; has authority to hire/fire or whose recommendations carry particular weight |
| Administrative | Performs office or non-manual work related to management or general business operations; exercises discretion and independent judgment on significant matters |
| Professional (learned) | Work requiring advanced knowledge in a field of science or learning, customarily acquired by a prolonged course of specialized instruction |
| Professional (creative) | Work requiring invention, imagination, originality, or talent in an artistic or creative field |
| Computer employee | Systems analysis, programming, software engineering, or related work — $684/week salary or $27.63/hour |
| Outside sales | Primary duty is making sales or obtaining orders away from the employer's place of business |
| Highly compensated | Total annual compensation of $107,432+; performs at least one exempt executive, administrative, or professional duty |
Source: 29 C.F.R. Part 541; https://www.dol.gov/agencies/whd/overtime/screen75
What Happened to the 2024 DOL Salary Threshold Increase?
In April 2024, the U.S. Department of Labor issued a final rule that would have raised the exempt salary threshold to $1,128/week ($58,656/year) effective January 1, 2025. On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated that rule nationwide in Texas v. U.S. Department of Labor (No. 4:24-cv-00499). The federal threshold remains $684/week ($35,568/year) as of 2026.
New York Exempt Salary Thresholds (2026) — Significantly Higher Than Federal
New York sets its own, much higher salary thresholds for the executive and administrative exemptions under 12 NYCRR § 142-2.14. There is no separate New York salary floor for the professional exemption — the federal $684/week threshold applies to that category.
| Region | Executive & Administrative threshold (2026) | Annual equivalent |
|---|---|---|
| NYC, Nassau, Suffolk, Westchester counties | $1,275.00/week | $66,300.00/year |
| Rest of New York State | $1,199.10/week | $62,353.20/year |
| Federal floor (all EAP exemptions) | $684.00/week | $35,568.00/year |
What this means in practice: An employee in New York City earning $900/week who performs management duties is exempt from overtime under federal law — but is not exempt under New York law, because $900/week is below the $1,275.00/week state threshold. Since New York law is more favorable to the employee, the state standard controls and the employee is entitled to overtime.
New York calculates its thresholds at approximately 75 times the applicable state minimum wage. As the minimum wage increases, the exempt salary thresholds rise proportionally.
Calculation basis: Approximately 75× the applicable state minimum wage Source: NY Labor Law § 652; 12 NYCRR § 142-2.14; https://dol.ny.gov/system/files/documents/2025/10/cr142.pdf
Important: Professional Exemption in New York
New York Labor Law does not impose a salary threshold above the federal level for the professional exemption (employees in a bona fide professional capacity). For professional employees, the federal $684/week threshold governs. Employees must still satisfy the applicable duties test under both federal and state law.
Source: 12 NYCRR § 142-2.14; 29 C.F.R. § 541.300
| States with Higher Exempt Salary Thresholds Than Federal (2026) — Context | ||
|---|---|---|
| State | Executive/Admin weekly threshold (2026) | Annual equivalent |
| Washington | $1,541.70 | $80,168.40 |
| California | $1,352.00 | $70,304.00 |
| New York (NYC/Long Island/Westchester) | $1,275.00 | $66,300.00 |
| New York (rest of state) | $1,199.10 | $62,353.20 |
| Colorado | $1,111.23 | $57,783.96 |
| Maine | ~$796.17 | ~$41,401.00 |
| Federal (FLSA) | $684.00 | $35,568.00 |
| Source: Respective state DOL websites; 12 NYCRR § 142-2.14 | ||
Federal Overtime Tax Deduction: "No Tax on Overtime" (2025–2028)
The One Big Beautiful Bill Act (Public Law 119-21), signed on July 4, 2025, created a new federal income tax deduction for qualified overtime compensation under Internal Revenue Code § 225. This deduction is available for tax years 2025 through 2028.
Who Is Eligible
- Nonexempt employees covered by the Fair Labor Standards Act (29 U.S.C. § 207)
- Must have a Social Security number valid for employment
- Cannot use the Married Filing Separately filing status
Who is NOT eligible:
- Exempt (salaried) employees who do not receive FLSA overtime
- Independent contractors (1099 workers) not covered by the FLSA
- Employees receiving overtime solely under New York state law, an employer policy, or a collective bargaining agreement, where that overtime is not also required by the FLSA
What Is Deductible
The deduction covers the premium portion of overtime pay — the amount that exceeds the regular rate.
| Overtime type | What is deductible | Example ($20.00/hr regular rate) |
|---|---|---|
| Time-and-a-half (1.5×) | The "half" — 1/3 of total OT pay | $10.00/hr per OT hour ($30.00 − $20.00) |
| Double time (2×) | The "full extra" — 1/2 of total OT pay | $20.00/hr per OT hour ($40.00 − $20.00) |
IRS shortcut for 2025: If you know only your total overtime pay and were paid time-and-a-half, divide the total overtime amount by 3. (Source: IRS Notice 2025-69)
| Deduction Limits | ||
|---|---|---|
| Filing status | Maximum annual deduction | Phase-out begins |
| Single | $12,500 | $150,000 MAGI |
| Married filing jointly | $25,000 | $300,000 MAGI |
| W-2 Reporting | |
|---|---|
| Tax year | Employer reporting requirement |
| 2025 | NOT required to separately report (transition year — IRS Notice 2025-62). May voluntarily report in W-2 Box 14 as "QUAL OT" or provide a separate statement. |
| 2026 and later | REQUIRED to separately report qualified overtime compensation. The IRS draft W-2 form indicates Box 12, Code TT for this purpose (draft form, subject to change before finalization). |
If an employer did not separately report overtime for 2025, the IRS allows employees to use “any reasonable method” to calculate the deductible amount, including one-third of total overtime pay (for time-and-a-half workers), payroll records or pay stubs, or employer statements.
What This Deduction Does NOT Do
- Does not exempt overtime from Social Security (6.2%) or Medicare (1.45%) taxes
- Does not apply to New York State, New York City, or Yonkers income taxes — federal deduction only
- Does not change the amount of overtime pay received — it reduces federal taxable income when filing
- Does not apply to overtime paid solely under New York state law or employer policy that exceeds FLSA requirements
Source: IRS FAQs on Qualified Overtime Compensation Deduction; IRS Notice 2025-69; IRS Notice 2025-62; IRC § 225; P.L. 119-21, § 70202; Schedule 1-A (Form 1040) Official IRS page: https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation
New York State Income Tax and Overtime
New York imposes a state income tax. The federal overtime deduction under P.L. 119-21 applies to federal income tax only. Overtime wages in New York remain fully subject to New York State income tax, and where applicable, New York City income tax and the Yonkers surcharge, at normal rates.
Decoupling from federal law: Due to New York’s 2018 decoupling from certain federal tax provisions, the above-the-line deductions introduced by P.L. 119-21 — including the overtime and tips deductions — do not automatically flow through to New York State adjusted gross income. Without separate state legislation, the federal overtime deduction provides no New York State income tax benefit.
Source: NY City Comptroller, Tax Provisions Under the Federal Reconciliation Bill (2025): https://www.osc.ny.gov/files/reports/pdf/tax-provisions-under-the-federal-reconciliation-bill.pdf; NY Tax Law § 612
Pending New York State Overtime Tax Legislation
Senate Bill S3914 (2025–2026 session): Introduced January 30, 2025, by Sen. Martins. Would amend NY Tax Law § 612(c) to allow individuals to subtract from federal adjusted gross income any overtime compensation received, to the extent included in federal gross income. The bill defines “overtime compensation” as wages earned for time worked beyond the employee’s normal scheduled hours. Status: In committee (Senate Budget and Revenue) as of February 2026. Source: https://www.nysenate.gov/legislation/bills/2025/S3914
For New York income tax details, see the New York Income Tax page.
Can an Employer Require Overtime in New York?
Under the FLSA, there is no federal limit on the number of hours an employer may require an adult employee (age 16 and older) to work in a workweek, as long as the employee is properly compensated for all overtime hours worked.
New York does not have a general statute restricting mandatory overtime for nonexempt adult employees in most private-sector industries. Employers may require overtime, and at-will employees who refuse may face disciplinary action unless a law, contract, or collective bargaining agreement provides otherwise.
Healthcare-specific restrictions: New York law restricts mandatory overtime in certain healthcare contexts. NY Labor Law § 167 limits mandatory overtime for registered nurses and other healthcare employees at hospitals and certain residential health care facilities. NY Public Health Law § 3614-c prohibits mandatory overtime for home care aides.
Source: NY Labor Law § 167: https://www.nysenate.gov/legislation/laws/LAB/167; NY Public Health Law § 3614-c
Protections That Always Apply
Regardless of mandatory overtime policies, the following protections apply in New York:
- All overtime hours must be compensated at the applicable overtime rate under New York law and the FLSA
- Overtime compensation cannot be waived by the employee (12 NYCRR § 142-2.2)
- Employers cannot retaliate against employees for asserting wage rights or filing a complaint (29 U.S.C. § 215(a)(3); NY Labor Law § 215)
- Child labor laws restrict hours for employees under age 18
- Employees may have additional protections under collective bargaining agreements or individual employment contracts
Source: 29 U.S.C. § 207; NY Labor Law § 215; 12 NYCRR § 142-2.2
Industry-Specific Overtime Rules in New York
Agriculture (Farm Workers)
Federal law (the FLSA) exempts most agricultural workers from overtime. New York does not follow this exemption. Under NY Labor Law § 671, farm workers in New York are entitled to overtime pay.
The overtime threshold for agricultural workers has been phased down in stages and will continue decreasing:
| Effective date | Overtime threshold for farm workers |
|---|---|
| January 1, 2024 | After 56 hours/week |
| January 1, 2026 | After 52 hours/week |
| January 1, 2028 | After 48 hours/week |
| January 1, 2030 | After 44 hours/week |
| January 1, 2032 | After 40 hours/week |
Farm workers are entitled to overtime at 1.5× their regular rate for hours worked above the applicable weekly threshold. Additionally, under NY Labor Law § 671(b), agricultural workers must receive at least 24 consecutive hours of rest each week.
Source: NY Labor Law § 671; https://dol.ny.gov/news/new-york-state-department-labor-reminds-new-yorkers-decrease-farm-worker-overtime-threshold-0; NYSDOL Farm Workers page: https://dol.ny.gov/farm-workers
Healthcare — 8-and-80 System (Hospitals and Residential Care)
Under 29 U.S.C. § 207(j), hospitals and residential care facilities may enter into an agreement with employees to use a 14-day work period rather than a 7-day workweek for overtime calculation. Under this system, overtime is owed after 8 hours in a single day or after 80 hours in the 14-day period, whichever calculation yields more overtime pay for the employee.
This option requires a prior agreement or understanding with affected employees. Absent such an agreement, the standard 40-hour workweek calculation applies.
Source: 29 U.S.C. § 207(j); 29 C.F.R. § 778.601
Healthcare — Mandatory Overtime Restrictions
As noted in Part 2, New York restricts mandatory overtime for registered nurses and certain other healthcare employees at hospitals and residential health care facilities (NY Labor Law § 167) and for home care aides (NY Public Health Law § 3614-c). These provisions do not reduce the obligation to pay overtime — they limit the circumstances under which overtime can be required.
Source: NY Labor Law § 167: https://www.nysenate.gov/legislation/laws/LAB/167
Retail and Commission Employees
Under 29 U.S.C. § 207(i), employees of retail or service establishments may be exempt from FLSA overtime if two conditions are met: (1) the employee’s regular rate exceeds 1.5× the applicable minimum wage, and (2) more than half of the employee’s compensation for a representative period comes from commissions. New York does not separately limit this exemption, but the more favorable standard applies if state and federal rules differ.
Source: 29 U.S.C. § 207(i); 29 C.F.R. § 779.416
Public Sector / Government Employees
Under 29 U.S.C. § 207(o), state and local government employers may offer compensatory time off (comp time) at 1.5 hours per overtime hour worked, instead of cash overtime pay, provided a prior agreement or understanding exists with the affected employees.
Comp time caps: 240 hours (480 hours for public safety, emergency response, and seasonal employees).
Private-sector employers in New York cannot substitute comp time for overtime pay. An employee who works overtime in the private sector must receive cash compensation at 1.5× the regular rate. (12 NYCRR § 142-2.2; 29 U.S.C. § 207(o))
Source: 29 U.S.C. § 207(o); https://www.dol.gov/agencies/whd/government-contracts/comp-time
Hospitality Industry (Restaurants and Hotels)
New York’s hospitality wage order (12 NYCRR Part 146) governs overtime for employees of restaurants and hotels in New York. The overtime rate and 40-hour threshold are the same as the Miscellaneous Order, but Part 146 includes specific rules on tip credits, service charges, and uniform allowances that affect how the regular rate is calculated for overtime purposes.
Source: 12 NYCRR Part 146: https://dol.ny.gov/system/files/documents/2022/03/cr146.pdf
Building Service Industry
New York’s building services wage order (12 NYCRR Part 141) applies to employees in the building service industry (janitors, cleaners, elevator operators, etc.). The overtime threshold and rate (1.5× regular rate after 40 hours/week) are the same as the general rules under Part 142.
Source: 12 NYCRR Part 141: https://dol.ny.gov/system/files/documents/2021/03/cr141.pdf
Motor Carrier Exemption
Employees whose duties directly affect the safe operation of motor vehicles in interstate commerce may be exempt from FLSA overtime under the Motor Carrier Act exemption. This applies regardless of state.
Source: 49 U.S.C. § 31502; 29 U.S.C. § 213(b)(1)
How to File an Overtime Wage Complaint in New York
Employees in New York who have not received proper overtime pay have three options.
Option 1: New York State Department of Labor — Division of Labor Standards
| Details | |
|---|---|
| Agency | NYSDOL Division of Labor Standards |
| Complaint form | Labor Standards Complaint Form (LS223) |
| Online filing | https://dol.ny.gov/file-labor-standards-wage-theft-claim |
| Wage Theft Hub | https://dol.ny.gov/wage-theft-hub |
| Complaint process overview | https://dol.ny.gov/labor-standards-complaint-process |
| Phone | (888) 469-7365 |
| Deadline | 6 years from the violation (NYLL § 198(3)) |
Farm workers use a separate form: LS710 (available at https://dol.ny.gov/unpaidwithheld-wages-and-wage-supplements).
Note: The New York State FY 2026 Budget expanded NYSDOL enforcement powers. NYSDOL may now issue warrants to levy financial assets and impose liens on employers found responsible for wage underpayments.
Source: https://dol.ny.gov/labor-standards-complaint-process; NY Labor Law § 198; https://dol.ny.gov/wage-theft-hub
Option 2: U.S. Department of Labor — Wage and Hour Division
| Details | |
|---|---|
| Online complaint | https://www.dol.gov/agencies/whd/contact/complaints |
| Phone | 1-866-487-9243 (toll-free) |
| Deadline | 2 years from violation (3 years if willful) |
Source: https://www.dol.gov/agencies/whd/contact/complaints; 29 U.S.C. § 255
Option 3: Private Lawsuit
Employees may file suit in New York State court or federal court. Under both the FLSA (29 U.S.C. § 216(b)) and NYLL § 198, remedies may include:
- Full amount of unpaid overtime wages
- Liquidated damages equal to 100% of unpaid wages (unless the employer establishes a good-faith basis for the underpayment — NYLL § 198(1-a))
- Prejudgment interest at 9% per year from the date wages were due (NYLL § 198(1-a))
- Reasonable attorney’s fees and court costs
Employees generally recover the higher of the FLSA or NYLL liquidated damages award — not both (courts have held that double recovery of liquidated damages for the same conduct is not permitted). Employees should consult with an attorney to determine the best forum for their specific claim.
Deadline: 6 years under NYLL § 198(3); 2 years under the FLSA (3 years if willful).
Source: NYLL § 198; 29 U.S.C. § 216(b); 29 U.S.C. § 255
Retaliation Protection
Under both the FLSA (29 U.S.C. § 215(a)(3)) and NY Labor Law § 215, employers cannot retaliate against employees for:
- Filing an overtime or wage complaint
- Participating in an investigation or proceeding
- Testifying about wage violations
Retaliation remedies under NY Labor Law § 215 include reinstatement, back pay, and civil penalties of up to $10,000 for a first violation and $20,000 for subsequent violations.
Source: 29 U.S.C. § 215(a)(3); NY Labor Law § 215: https://www.nysenate.gov/legislation/laws/LAB/215
Penalties for Overtime Violations in New York
| Federal FLSA Penalties | |
|---|---|
| Penalty type | Amount |
| Back wages | Full amount of unpaid overtime owed |
| Liquidated damages | Equal to unpaid wages (effectively doubles recovery) |
| Civil monetary penalty | Up to $2,451 per violation (willful/repeated — adjusted annually by DOL) |
| Criminal prosecution | Willful violations: fines up to $10,000; second offense: up to 6 months imprisonment |
Source: 29 U.S.C. § 216; https://www.dol.gov/agencies/whd/overtime
| New York State Penalties (NYLL) | |
|---|---|
| Penalty type | Amount |
| Back wages | Full amount of unpaid overtime owed |
| Liquidated damages | 100% of unpaid wages unless employer proves good-faith basis (NYLL § 198(1-a)) |
| Prejudgment interest | 9% per year from the date wages were due (NYLL § 198(1-a)) |
| Attorney's fees and costs | Recoverable by prevailing employee (NYLL § 198(1-a)) |
| Retaliation penalties | Up to $10,000 (first offense), $20,000 (subsequent offense) under NY Labor Law § 215 |
Note on stacking: Courts have held that an employee can recover the higher of FLSA or NYLL liquidated damages for the same conduct, but not both — preventing a triple recovery.
New York’s FY 2026 budget also expanded NYSDOL’s authority: the agency may now issue warrants and levy financial assets of employers subject to unpaid wage judgments.
Source: NYLL § 198; https://www.nysenate.gov/legislation/laws/LAB/198; https://dol.ny.gov/wage-theft-hub
New York Overtime Law Updates (2025–2026)
Federal Changes Affecting New York
- July 4, 2025: One Big Beautiful Bill Act signed (P.L. 119-21) — created federal overtime tax deduction under IRC § 225 for tax years 2025–2028.
- November 15, 2024: Federal district court vacated the DOL’s 2024 salary threshold rule — exempt threshold remains $684/week ($35,568/year) federally.
New York State Changes
- January 1, 2026: Minimum wage increased to $17.00/hour in NYC, Nassau, Suffolk, and Westchester; $16.00/hour in the rest of the state. As a result, the overtime minimum rate increased to $25.50/hour and $24.00/hour respectively.
- January 1, 2026: Executive and administrative exempt salary thresholds increased to $1,275.00/week ($66,300/year) in NYC and surrounding counties and $1,199.10/week ($62,353.20/year) in the rest of the state (12 NYCRR § 142-2.14).
- January 1, 2026: Agricultural overtime threshold decreased from 56 hours/week to 52 hours/week under the phased reduction schedule (NY Labor Law § 671).
- May 9, 2025: NY FY 2026 Budget expanded NYSDOL enforcement authority — agency may now issue warrants and levy financial assets to collect unpaid wage judgments (amending NY Labor Law § 198 and related provisions).
- Starting January 1, 2027: New York minimum wage increases will shift to an annual formula based on the three-year average of the regional Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region.
Pending Legislation
- Senate Bill S3914 (2025–2026): Would amend NY Tax Law § 612(c) to exempt overtime compensation from New York State personal income tax. Status: In committee (Senate Budget and Revenue) as of February 2026. Source: https://www.nysenate.gov/legislation/bills/2025/S3914
- Senate Bill S587-A (2026): Proposed no-tax-on-tips at the state level, mirroring federal OBBBA provisions. Introduced January 8, 2026. Status: Pending Senate Committee on Budget and Revenue. Source: https://www.nysenate.gov/legislation/bills/2025/S587/amendment/A
Last reviewed: February 26, 2026 Next scheduled review: May 26, 2026
Frequently Asked Questions About Overtime in New York
Does New York have its own overtime law?
Yes. New York has its own overtime law under New York Labor Law § 650 et seq. and 12 NYCRR Part 142. When New York law and the FLSA differ, the standard more favorable to the employee applies. Key New York additions include higher exempt salary thresholds, a residential employee rule (overtime after 44 hours/week), mandatory overtime for farm workers, and a six-year statute of limitations.
What is the overtime rate in New York in 2026?
The overtime rate in New York is 1.5 times the employee’s regular rate of pay for hours worked over 40 in a workweek. Based on the 2026 New York minimum wages, the minimum overtime rate is $25.50/hour in New York City, Nassau, Suffolk, and Westchester, and $24.00/hour in the rest of the state.
Does New York require daily overtime?
No. New York calculates overtime on a weekly basis only. Working 10 or 12 hours in a single day does not trigger overtime unless total hours in the workweek exceed 40 (or 44 for residential employees). Note that New York does require spread-of-hours pay — one extra hour at minimum wage — when a workday spans more than 10 hours from start to finish.
Is mandatory overtime legal in New York?
Generally, yes. New York does not restrict mandatory overtime for most private-sector adult employees. Employers may require overtime, and at-will employees who refuse may face discipline. Healthcare workers are an exception: NY Labor Law § 167 limits mandatory overtime for registered nurses and certain other health care employees, and NY Public Health Law § 3614-c prohibits mandatory overtime for home care aides.
Am I exempt from overtime in New York?
Exemption in New York depends on salary level and job duties — and you must satisfy both federal and state requirements. For executive and administrative roles, you must earn at least $1,275.00/week (NYC and surrounding counties) or $1,199.10/week (rest of state) in 2026. For professional roles, the federal $684/week floor applies. In all cases, you must also pass the applicable duties test.
Can salaried employees get overtime in New York?
Yes. Being paid a salary does not automatically make an employee exempt. Salaried employees who earn less than the applicable New York threshold or who do not satisfy the duties tests are nonexempt and entitled to overtime. New York’s thresholds are nearly double the federal floor in many regions.
Is overtime taxed in New York?
Overtime pay is subject to federal income tax, New York State income tax, and where applicable, New York City income tax and the Yonkers surcharge. However, under the One Big Beautiful Bill Act (P.L. 119-21), FLSA-covered nonexempt employees may deduct up to $12,500 ($25,000 for joint filers) of the premium portion of overtime from federal taxable income for tax years 2025–2028. This federal deduction does not apply to New York State taxes due to New York’s decoupling from certain federal provisions. Pending Senate Bill S3914 would create a separate New York State exemption if enacted.
How do I calculate the federal overtime tax deduction?
For time-and-a-half pay, the deductible amount is one-third of your total overtime pay. For example, if you earned $9,000 in total overtime at time-and-a-half, the qualified overtime compensation is $3,000. The IRS confirms this calculation method in Notice 2025-69.
How do I file an overtime complaint in New York?
File a complaint with the NYSDOL Division of Labor Standards using the Labor Standards Complaint Form (LS223), available at https://dol.ny.gov/file-labor-standards-wage-theft-claim, or call (888) 469-7365. You may also file with the U.S. DOL Wage and Hour Division at https://www.dol.gov/agencies/whd/contact/complaints or by calling 1-866-487-9243.
Can my employer fire me for refusing overtime in New York?
In most cases, yes. New York is an at-will employment state, and employers may generally discipline or terminate employees who refuse mandatory overtime, unless a law (such as the healthcare restrictions), employment contract, or collective bargaining agreement provides otherwise. However, an employer cannot lawfully retaliate against an employee for filing a wage complaint or asserting overtime rights under NY Labor Law § 215 or the FLSA.
Can my employer give comp time instead of overtime pay in New York?
Private-sector employers in New York cannot substitute comp time for overtime pay. Cash at 1.5× the regular rate is required. Public-sector employers (state and local government) may offer comp time at 1.5 hours per overtime hour under 29 U.S.C. § 207(o), up to 240 hours (480 hours for public safety and emergency employees), provided a prior agreement is in place.
Does working weekends or holidays count as overtime in New York?
No. Working on weekends or holidays does not automatically trigger overtime under New York law or the FLSA. Overtime depends on the total hours worked in the workweek, not which days those hours occurred. Premium weekend or holiday pay is only required if mandated by an employment contract or collective bargaining agreement.
What happens if my employer doesn’t pay overtime in New York?
Employees may recover unpaid overtime wages, liquidated damages equal to 100% of unpaid wages (unless the employer establishes good faith), prejudgment interest at 9% per year, and attorney’s fees under NYLL § 198. Federal remedies under 29 U.S.C. § 216(b) also include liquidated damages. Employees recover the higher amount — not both combined.
What is the statute of limitations for overtime claims in New York?
Under New York Labor Law § 198(3), employees have six years from the violation to file a wage claim — including unpaid overtime. Under the FLSA, the deadline is two years (three years for willful violations). New York’s longer deadline typically governs, but employees can file claims under both statutes simultaneously.
Do I get overtime for farm work in New York?
Yes. New York requires overtime for agricultural workers, unlike federal law. As of January 1, 2026, farm workers are entitled to overtime pay for hours worked beyond 52 per week. This threshold decreases by four hours every two years until it reaches 40 hours per week in 2032 (NY Labor Law § 671).
What is spread-of-hours pay in New York?
Spread-of-hours pay is a New York-specific requirement. Under 12 NYCRR § 142-2.4, employees in miscellaneous industries who work a day that spans more than 10 hours from the start to the end of their workday are entitled to one additional hour of pay at the applicable minimum wage rate. This is separate from overtime and applies regardless of whether the employee worked continuously for 10 hours.
Sources and Verification
Primary Sources
- New York Labor Law § 650 et seq. (overtime authority) — https://www.nysenate.gov/legislation/laws/LAB/A19
- New York Labor Law § 671 (agricultural workers) — https://www.nysenate.gov/legislation/laws/LAB/671
- New York Labor Law § 167 (mandatory overtime restrictions — healthcare) — https://www.nysenate.gov/legislation/laws/LAB/167
- New York Labor Law § 215 (retaliation protection) — https://www.nysenate.gov/legislation/laws/LAB/215
- New York Labor Law § 198 (penalties and statute of limitations) — https://www.nysenate.gov/legislation/laws/LAB/198
- 12 NYCRR Part 142 — Minimum Wage Order for Miscellaneous Industries and Occupations (overtime rate, residential employees, spread of hours, regular rate, exempt thresholds) — https://dol.ny.gov/system/files/documents/2025/10/cr142.pdf
- 12 NYCRR Part 146 — Hospitality Wage Order — https://dol.ny.gov/system/files/documents/2022/03/cr146.pdf
- 12 NYCRR Part 141 — Building Services Wage Order — https://dol.ny.gov/system/files/documents/2021/03/cr141.pdf
- NYSDOL Overtime FAQ (PDF) — https://dol.ny.gov/system/files/documents/2021/03/overtime-frequently-asked-questions_0.pdf
- NYSDOL Wage Theft Hub — https://dol.ny.gov/wage-theft-hub
- NYSDOL Labor Standards Complaint Process — https://dol.ny.gov/labor-standards-complaint-process
- NYSDOL File a Wage Theft Claim — https://dol.ny.gov/file-labor-standards-wage-theft-claim
- NYSDOL Farm Workers — https://dol.ny.gov/farm-workers
- NYSDOL Minimum Wage — https://dol.ny.gov/minimum-wage
- NY Attorney General — Wages and Pay — https://ag.ny.gov/resources/individuals/workers-rights/wages-pay
- NY Governor’s Office — FY2026 Wage Updates announcement — https://www.governor.ny.gov/news/money-your-pockets-governor-hochul-kicks-2026-affordability-agenda-new-tax-relief-efforts-and
- NY Senate Bill S3914 (overtime tax) — https://www.nysenate.gov/legislation/bills/2025/S3914
- NY Tax Law § 612 — https://www.nysenate.gov/legislation/laws/TAX/612
- NY Withholding Tax Rate Changes 2026 — https://www.tax.ny.gov/bus/wt/rate.htm
- NY Office of the State Comptroller, Tax Provisions Under the Federal Reconciliation Bill (P.L. 119-21) — https://www.osc.ny.gov/files/reports/pdf/tax-provisions-under-the-federal-reconciliation-bill.pdf
- Fair Labor Standards Act, 29 U.S.C. § 201–219 — https://www.dol.gov/agencies/whd/overtime
- 29 C.F.R. Part 541 (Overtime Exemptions) — https://www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-A/part-541
- 29 C.F.R. § 778.104–778.122 (Regular Rate of Pay) — https://www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-A/part-778
- U.S. DOL Wage and Hour Division — Overtime — https://www.dol.gov/agencies/whd/overtime
- IRS FAQs — Qualified Overtime Compensation Deduction — https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation
- IRS Notice 2025-69 (Individual calculation guidance for overtime deduction)
- IRS Notice 2025-62 (Employer reporting transition relief for 2025)
- IRC § 225; P.L. 119-21 § 70202; Schedule 1-A (Form 1040)