Long Island Wage Law: January 2026 Changes

Executive Summary

If you employ workers in Nassau or Suffolk County, two critical Long Island wage law changes take effect January 1, 2026: the minimum wage increases to $17.00 per hour, and the overtime salary threshold rises to $1,275.00 per week. Your first step should be auditing all employee classifications and current pay rates before year-end.

Effective Dates & What To Change

Understanding the Minimum Wage Increase

Starting January 1, 2026, the minimum wage across New York State rises to $17.00 per hour. This applies to every employer in Nassau and Suffolk counties, regardless of industry or business size. If you have hourly workers currently earning less than this amount, their pay must be adjusted before the new year.

For Long Island businesses operating on tight margins, this change requires immediate budget planning. Review your payroll costs now and determine how the increase will affect your bottom line. Many small business owners find it helpful to model different scenarios—adjusting hours, reviewing pricing, or evaluating staffing levels—well before the effective date.

Overtime Threshold Changes for Long Island Employers

The second major Long Island wage law update involves overtime eligibility. As of January 1, 2026, the salary threshold for overtime exemption increases to $1,275.00 per week in Long Island, Westchester County, and New York City.

This means employees earning less than $1,275.00 weekly ($66,300 annually) must receive overtime pay for hours worked beyond 40 in a workweek—even if they hold managerial titles or perform exempt duties. If you have salaried employees currently classified as exempt who earn below this threshold, you have two options: raise their salary to meet the new threshold or reclassify them as non-exempt and track their hours.

This change particularly impacts Nassau and Suffolk County businesses in professional services, healthcare practices, and retail management where salaried supervisors may fall below the new threshold.

Compliance Checklist for Long Island Employers

• ☐ Audit all hourly employee wages against the $17.00 minimum
• ☐ Identify salaried employees earning below $1,275.00/week
• ☐ Decide whether to raise salaries or reclassify affected employees
• ☐ Update payroll systems with new rates before January 1, 2026
• ☐ Revise job descriptions if reclassifying employees
• ☐ Implement time-tracking systems for newly non-exempt workers
• ☐ Update employee handbooks with current wage information
• ☐ Train managers on overtime authorization procedures
• ☐ Review and adjust operating budgets accordingly
• ☐ Post updated wage notices in required workplace locations

Real-World Long Island Examples

Example 1: Suffolk County Dental Practice
A dental office in Smithtown employs an office manager earning $1,150 per week on salary. Under current rules, she's classified as exempt. Starting January 2026, she falls below the $1,275.00 threshold. The practice must either increase her salary by $125 weekly or begin tracking her hours and paying overtime when she exceeds 40 hours.

Example 2: Nassau County Accounting Firm
A small accounting firm in Garden City has three junior accountants earning $62,000 annually ($1,192 per week). All three currently work overtime during tax season without additional pay. After January 1, 2026, the firm must either raise each salary to at least $66,300 or pay time-and-a-half for all hours over 40.

What NOT To Do

• Don't wait until December – Payroll system updates take time, and rushing creates errors
• Don't assume job titles determine exemption – The salary threshold applies regardless of whether someone is called a "manager" or "supervisor"
• Don't reduce hours to avoid paying minimum wage – This may trigger other compliance issues and harm employee relations
• Don't forget to update your posted notices – New York requires current wage information displayed in the workplace

Frequently Asked Questions