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New York Overtime Laws: When You’re Entitled to 1.5x Pay (2025)

If you work more than 40 hours in a week in New York, you’re likely entitled to overtime pay at one and a half times your regular rate. New York overtime laws follow the federal Fair Labor Standards Act (FLSA), which means most workers earn time-and-a-half for any hours beyond 40 in a seven-day workweek. Unlike California, New York doesn’t require daily overtime—you could work a 12-hour shift and not get overtime pay if your weekly total stays under 40 hours.

Understanding when you qualify for overtime, how to calculate your rate, and which exemptions apply can help you identify if your employer is paying you correctly. Many workers in New York are owed back overtime simply because their employer misunderstood the rules or misclassified them as exempt.

Federal FLSA Overtime Requirements in New York

The Fair Labor Standards Act sets the baseline for overtime pay across the country, including New York. Under the FLSA, non-exempt employees must receive overtime compensation at a rate of 1.5 times their regular hourly rate for all hours worked beyond 40 in a workweek.

Here’s what that means in practice:

The 40-Hour Weekly Threshold: Overtime kicks in after you work more than 40 hours in a single workweek. A workweek is any fixed, regularly recurring period of seven consecutive 24-hour periods. Your employer defines the workweek—it could start on Sunday, Monday, or any day—but once established, it must remain consistent.

All Hours Worked Count: Every hour you’re required to be on duty counts toward your 40-hour threshold. This includes time spent traveling between job sites, attending mandatory meetings, completing required training, and even certain on-call periods if you’re restricted in how you can use that time.

Calculating the Overtime Rate: Your overtime rate is 1.5 times your “regular rate of pay.” For hourly workers, this seems simple—if you make $20 per hour, your overtime rate is $30 per hour. But if you receive nondiscretionary bonuses, commissions, or shift differentials, these must be included in calculating your regular rate.

Example: You work 50 hours in a week at $18 per hour. You earn your regular rate for the first 40 hours ($720) plus time-and-a-half for the 10 overtime hours ($27 per hour = $270), for a total of $990.

The FLSA sets a federal floor, but states can add protections on top of it. New York has done this in limited ways, particularly for certain categories of workers.

No Daily Overtime in New York

One critical difference between New York and states like California: New York does not require daily overtime. In California, you earn overtime after working more than 8 hours in a single day, even if you work fewer than 40 hours that week. New York has no such requirement.

This means your employer can schedule you for a 12-hour shift without paying overtime, as long as your total hours for the week don’t exceed 40. Some workers find this surprising, especially those who’ve worked in states with daily overtime rules.

Example: You work Monday through Thursday, with shifts of 12, 11, 10, and 7 hours (40 total). In New York, you receive no overtime because you didn’t exceed 40 hours for the week. In California, you’d earn overtime for the hours beyond 8 each day.

Why It Matters: Employers in industries like healthcare, manufacturing, and hospitality sometimes use compressed schedules—longer shifts over fewer days. Under New York law, this is legal without overtime pay, provided the weekly total stays at or below 40 hours.

If you regularly work long shifts and aren’t seeing overtime on your paycheck, check your total weekly hours. The violation isn’t the long day—it’s whether you’re exceeding 40 hours per week without proper compensation.

Residential Workers: 44-Hour Threshold

New York makes an exception for residential employees—workers who live on the premises where they work. For these employees, overtime doesn’t begin until after 44 hours in a workweek, not 40.

Who Qualifies as Residential: This category typically includes live-in domestic workers such as:

  • Live-in nannies or au pairs
  • Live-in home health aides
  • Live-in housekeepers
  • Residential building superintendents who live on-site

The key factor is whether you reside at your workplace as part of your employment arrangement. If you live in an apartment provided by your employer at the building where you work, you likely fall under this rule.

How It Works: If you’re a residential employee, you earn your regular rate for the first 44 hours worked in a week, then 1.5 times your regular rate for any hours beyond 44.

Example: You’re a live-in nanny earning $16 per hour. You work 50 hours in a week. You receive regular pay for 44 hours ($704) plus overtime pay for 6 hours at $24 per hour ($144), totaling $848.

Important Note: Even though the overtime threshold is higher for residential workers, all other wage and hour protections still apply. You’re still entitled to at least minimum wage for all hours worked, proper record-keeping by your employer, and payment for all time worked.

This exemption recognizes that residential employment often involves irregular schedules and on-call availability that differs from traditional workplace arrangements. However, employers sometimes try to misapply this rule to workers who don’t actually live on-site—if you’re not a residential employee, the standard 40-hour threshold applies.

Calculating Your Regular Rate

Your overtime rate is always 1.5 times your “regular rate,” but figuring out that regular rate can be more complex than simply looking at your hourly wage. The FLSA requires that certain additional compensation be included in the regular rate calculation.

For Hourly Employees: If you only receive an hourly wage with no other compensation, your regular rate is simply your hourly rate. A worker earning $22 per hour has a regular rate of $22 and an overtime rate of $33.

When Additional Pay Is Involved: If you receive other forms of compensation beyond your base hourly rate, you must factor these into your regular rate:

Nondiscretionary Bonuses: Production bonuses, attendance bonuses, or any bonus promised in advance must be allocated back across all hours worked in the period to determine your true regular rate.

Example: You work 45 hours in a week at $20 per hour. You also earn a $100 production bonus that week. Your total straight-time earnings are $900 plus $100 = $1,000. Divide this by 45 hours to get a regular rate of $22.22. Your overtime rate is $33.33, and you’re owed an additional half-time rate ($11.11) for the 5 overtime hours, or $55.55 in overtime premium.

Commissions: If you’re paid hourly plus commission, the commission must be included in your regular rate calculation. Divide your total earnings (hourly plus commission) by total hours worked to find your regular rate for that week.

Shift Differentials: Extra pay for night shifts, weekend work, or hazardous duty is included in the regular rate calculation.

What’s NOT Included: Some payments are excluded from the regular rate calculation:

  • Discretionary bonuses (truly optional gifts from the employer)
  • Reimbursement for expenses
  • Premium pay for weekend or holiday work (if it’s truly a premium on top of regular pay)
  • Gifts for special occasions

For Salaried Non-Exempt Workers: If you’re paid a salary but still entitled to overtime (not all salaried workers are exempt), calculate your regular rate by dividing your weekly salary by the number of hours the salary is intended to cover.

Example: You earn a $800 weekly salary meant to cover 40 hours. Your regular rate is $20 per hour ($800 ÷ 40). If you work 47 hours, you’re owed 7 hours of overtime at $30 per hour ($210), making your total pay $1,010 for the week.

Many employers make mistakes in regular rate calculations, especially when bonuses or commissions are involved. If you receive variable compensation, review several paychecks to verify your overtime rate is being calculated correctly.

Who Is Exempt from Overtime?

Not every employee in New York is entitled to overtime pay. The FLSA creates several exemptions for workers who meet specific criteria. Being exempt means you can work more than 40 hours in a week without receiving overtime compensation.

However, exemptions are narrowly defined. Courts interpret them strictly because the right to overtime is the rule, and exemption is the exception. Your employer bears the burden of proving an exemption applies.

The Three Main “White Collar” Exemptions: The most common exemptions are for executive, administrative, and professional employees. To qualify for any of these, you must meet both a salary test and a duties test.

Salary Basis Test: You must be paid a predetermined fixed salary that doesn’t vary based on the quality or quantity of work. Your employer generally can’t dock your pay for partial-day absences (though deductions for full-day absences are allowed).

Salary Level Test: Your salary must meet minimum thresholds:

  • Federal minimum: $684 per week ($35,568 annually)
  • New York State minimum: Varies by location and employer size
  • New York City (employers with 11+ employees): $1,125 per week ($58,500 annually) for executive and administrative exemptions as of December 31, 2024

New York’s higher thresholds apply to executive and administrative exemptions but not professional exemptions, which follow the lower federal standard.

Duties Tests: Beyond salary requirements, you must primarily perform exempt duties.

Executive Exemption:

  • Primary duty is managing the enterprise or a department/subdivision
  • Regularly directs the work of at least two full-time employees
  • Has authority to hire/fire or significant input into employment decisions

Administrative Exemption:

  • Primary duty is office or non-manual work directly related to management or business operations
  • Exercises discretion and independent judgment on significant matters

Professional Exemption:

  • Work requires advanced knowledge in a field of science or learning
  • Knowledge is customarily acquired through prolonged specialized education
  • Examples: lawyers, doctors, teachers, architects, engineers

Other Common Exemptions:

Computer Employees: Software engineers, systems analysts, and programmers who meet specific duties tests and earn at least $684 per week salary or $27.63 per hour.

Outside Sales: Employees whose primary duty is making sales away from the employer’s place of business.

Highly Compensated Employees: Workers earning $107,432 or more annually may be exempt under a relaxed duties test.

The key point: exemption is not automatic based on your job title or because you’re paid a salary. Both the salary level and the duties must align with the exemption requirements.

New York’s Higher Salary Thresholds

While federal law sets a baseline salary threshold of $684 per week for most overtime exemptions, New York has established higher minimums that vary by location and employer size.

Why New York Is Different: The state recognizes that the cost of living in New York City far exceeds that of rural upstate areas. To ensure exemptions are applied fairly, New York created geographic and employer-size tiers.

Current Thresholds (as of December 31, 2024):

New York City:

  • Employers with 11+ employees: $1,125.00 per week ($58,500 annually)
  • Employers with 10 or fewer employees: $1,125.00 per week ($58,500 annually)

Nassau, Suffolk, and Westchester Counties: $1,125.00 per week ($58,500 annually)

Remainder of New York State: $1,124.20 per week ($58,458.40 annually)

These thresholds apply to the executive and administrative exemptions. The professional exemption still follows the federal $684 per week threshold in New York.

What This Means for Workers: If you work in New York City and your employer claims you’re exempt as an “executive” or “administrator,” but you earn less than $58,500 per year, you’re likely misclassified. You should be receiving overtime pay for any hours over 40 per week.

Example: You work as an assistant manager at a retail store in Manhattan, earning $52,000 per year ($1,000 per week). You regularly work 50 hours per week. Because your salary falls below the $1,125 weekly threshold, you don’t qualify for the executive exemption—even if your duties would otherwise meet the test. You’re entitled to overtime for those 10 weekly hours beyond 40.

Updates and Changes: New York has periodically raised these thresholds. Always check current rates, as your exempt status can change when thresholds increase, even if your job duties and salary remain the same.

If you’re earning close to these threshold amounts, pay attention to any raises. A small increase that pushes you above the threshold could eliminate your overtime eligibility if you also meet the duties test.

Common Misclassification Issues

Overtime misclassification is one of the most frequent wage and hour violations in New York. Employers often make incorrect assumptions about who qualifies as exempt, leaving workers without overtime pay they’ve rightfully earned.

“You’re a Manager, So You’re Exempt”: Having “manager” in your job title doesn’t automatically make you exempt. You must meet both the salary and duties tests for the executive exemption. If you spend most of your time doing the same work as the employees you supposedly supervise—stocking shelves, serving customers, preparing food—you likely don’t qualify as exempt, regardless of your title.

Example: You’re an “assistant manager” at a fast-food restaurant earning $950 per week. You spend 70% of your time working the register, cooking, and cleaning, with only 30% of time on scheduling and supervising. Even though you have a manager title and some supervisory duties, your primary duty is non-exempt manual work. You should receive overtime.

“You’re Salaried, So No Overtime”: Being paid a salary instead of hourly doesn’t make you exempt. The salary basis is only one part of the test. You must also meet the salary level threshold and perform exempt duties. Many salaried workers are actually non-exempt and entitled to overtime.

“You’re Paid Well, So You Must Be Exempt”: High pay alone doesn’t create an exemption (unless you’re earning $107,432+ annually and meet the highly compensated employee test). You can earn $80,000 per year but still be entitled to overtime if you don’t meet the duties test for an exemption.

Independent Contractor Misclassification: Some employers classify workers as independent contractors to avoid paying overtime (and other benefits). But the label doesn’t determine the reality. If your employer controls how, when, and where you work, provides your tools and equipment, and integrates you into their regular business operations, you’re likely an employee entitled to overtime—not an independent contractor.

Commission-Based Employees: Working on commission doesn’t automatically exempt you from overtime. Unless you qualify for the outside sales exemption or retail/service establishment exemption (which has specific requirements), you’re entitled to overtime on top of commissions.

Unpaid Training, Meetings, and Travel: Time spent in required training, mandatory meetings, or traveling between job sites counts as hours worked. If these activities push you over 40 hours in a week, you’re owed overtime. Some employers incorrectly exclude this time from overtime calculations.

If your employer has told you “you’re not eligible for overtime” but you’re unsure why, ask for a written explanation of which exemption applies to you. Compare your actual job duties and salary to the exemption requirements. The answer may surprise you.

Overtime for Tipped Employees

Workers who receive tips are entitled to overtime just like any other non-exempt employee. However, calculating overtime for tipped workers involves an extra step because of the tip credit system.

How the Tip Credit Works: Under federal law and New York law, employers can pay tipped employees less than the full minimum wage, as long as tips make up the difference. The employer takes a “tip credit” against their minimum wage obligation.

New York’s Tipped Minimum Wages (2025): The cash wage (what the employer must pay directly) and tip credit amounts vary by industry and location. For food service workers in most of New York, employers must pay at least $10.00 per hour in direct cash wages, with tips expected to bring total compensation up to the full minimum wage.

Overtime Calculation for Tipped Employees: When calculating overtime, you must use your full regular rate—the minimum wage, not just the cash wage your employer pays.

Example: You’re a server in New York City where the minimum wage is $16.00 per hour. Your employer pays you $10.00 per hour directly and takes a $6.00 tip credit. You work 50 hours in a week.

  • Regular rate: $16.00 per hour (full minimum wage)
  • Overtime rate: $24.00 per hour (1.5 × $16.00)
  • First 40 hours: $16.00 × 40 = $640
  • Overtime hours: $24.00 × 10 = $240
  • Total owed: $880

Your employer can apply the tip credit to both regular and overtime hours, but only up to the tip credit limit ($6.00 in this example). For the overtime hours, the employer must pay you at least $18.00 per hour directly ($24.00 overtime rate minus $6.00 tip credit), assuming your tips cover the credit.

Key Point: Your tips must actually cover the tip credit for all hours worked, including overtime hours. If they don’t, your employer must make up the difference so you earn at least the full minimum wage for regular hours and 1.5 times minimum wage for overtime hours.

Common Violations: Some employers incorrectly calculate tipped employee overtime using only the reduced cash wage rather than the full minimum wage. This significantly underpays workers.

Incorrect calculation: $10.00 cash wage × 1.5 = $15.00 overtime rate (WRONG)

Correct calculation: $16.00 minimum wage × 1.5 = $24.00 overtime rate (minus allowable tip credit)

If you’re a tipped worker receiving overtime, check your pay stubs carefully. Your overtime rate should be based on the full minimum wage, not the reduced cash wage your employer pays before tips.

Comp Time Is Illegal in Private Employment

Some employers offer “comp time”—time off instead of overtime pay—as an alternative when you work beyond 40 hours. In private sector employment, this is illegal under federal law.

What Comp Time Is: Compensatory time off (comp time) means giving an employee 1.5 hours of paid time off for each hour of overtime worked, instead of paying 1.5 times the regular rate in wages.

Why It’s Illegal for Private Employers: The FLSA requires that private employers pay overtime wages in the pay period when the overtime is earned. You cannot agree to waive this right, and your employer cannot substitute time off for overtime pay, even if you prefer it.

Example of a Violation: You work 50 hours in week one. Instead of paying you for 10 overtime hours, your employer gives you 15 hours of “comp time” to use in future weeks. This is illegal. You must be paid overtime wages for week one, regardless of any time-off arrangement.

Government Employees Are Different: Public sector employees (government workers) can receive comp time under specific conditions set by the FLSA. But this exception doesn’t apply to private businesses.

Flexible Scheduling Is Different: Your employer can adjust your schedule within a single workweek to avoid overtime. If you work 12 hours on Monday, your employer can schedule you for only 28 hours the rest of the week to stay at 40 total hours. This is legal because overtime is calculated weekly—you never exceeded 40 hours in the workweek.

But your employer cannot average hours across multiple weeks. Working 50 hours one week and 30 hours the next still means you’re owed overtime for the first week.

What to Do If Your Employer Offers Comp Time: Politely explain that private employers must pay overtime in wages. If your employer insists on comp time instead of paying overtime, you may have a wage and hour violation worth documenting and reporting.

Some workers prefer time off to extra money, but the law doesn’t allow this trade in private employment. The requirement exists to discourage employers from overworking employees and to ensure workers are fairly compensated for long hours.

Unpaid Overtime: How to Recover

If your employer has failed to pay you overtime wages you’ve earned, New York law provides several paths to recovery. You may be entitled not only to the unpaid wages but also to additional damages and attorney’s fees.

How Much Time Do You Have to Claim?: New York has one of the longest statutes of limitations for wage claims in the country:

  • New York Labor Law: 6 years to file a claim for unpaid wages
  • Federal FLSA: 2 years for most violations, 3 years if the violation was willful

Because New York’s 6-year window is longer, most workers benefit from filing under state law.

Where to File Your Claim:

New York Department of Labor (NYDOL): You can file a wage complaint with the NYDOL’s Division of Labor Standards. This is a free administrative process. The agency will investigate your claim and can order your employer to pay back wages. However, the NYDOL process can be slow, and the agency has limited resources.

U.S. Department of Labor (USDOL): You can file a complaint with the federal Wage and Hour Division. Like the NYDOL, this is a free administrative process, but it typically only covers FLSA violations (not state-specific protections).

Lawsuit in Court: You can file a lawsuit directly against your employer in state or federal court. This option gives you more control over the process and may result in faster resolution, but typically requires hiring an attorney.

What You Can Recover:

Back Wages: All unpaid overtime you should have received.

Liquidated Damages: Under both federal and New York law, you may be entitled to an additional amount equal to 100% of your unpaid wages—essentially doubling your recovery. Courts have discretion to reduce this in some cases, but it’s frequently awarded in full.

Example: You’re owed $10,000 in unpaid overtime. With liquidated damages, you could recover $20,000 total.

Attorney’s Fees and Costs: If you prevail in a lawsuit, the law requires your employer to pay your reasonable attorney’s fees and court costs. This provision exists so workers can find legal representation without paying out of pocket.

Interest: You may also be entitled to pre-judgment interest on unpaid wages.

Steps to Take:

  1. Document Everything: Keep records of your hours worked, pay stubs, time sheets, emails about scheduling, and any communications about your overtime status. If your employer doesn’t provide records, keep your own log.

  2. Calculate What You’re Owed: Determine how many overtime hours you worked and weren’t paid for, going back as far as 6 years. Multiply those hours by your overtime rate (1.5 times your regular rate, properly calculated).

  3. Contact Your Employer (Optional): Sometimes a written request explaining the underpayment can resolve the issue without filing a formal claim. However, you’re not required to do this, especially if you fear retaliation.

  4. File a Claim or Consult an Attorney: Decide whether to file with the NYDOL or pursue a lawsuit. For substantial claims, consulting an employment attorney is often worthwhile—many offer free consultations and work on contingency (they only get paid if you recover money).

Retaliation Is Illegal: Your employer cannot fire you, demote you, reduce your hours, or otherwise retaliate against you for claiming unpaid wages. If retaliation occurs, you have a separate legal claim for damages.

Class and Collective Actions: If your employer has misclassified or underpaid multiple workers, you may be able to join with coworkers in a class action (under state law) or collective action (under the FLSA). These cases can be powerful because they spread legal costs across many workers and create leverage for settlement.

You worked for your overtime pay—you shouldn’t have to fight for it alone. Whether through a state agency, federal agency, or the courts, you have options to recover what you’re owed.

Need Help with Unpaid Overtime in New York?

If you believe your employer has violated New York overtime laws, you don’t have to navigate the claims process alone. Understanding your rights is the first step. Documenting your unpaid hours and calculating what you’re owed puts you in a strong position to recover. With New York’s 6-year lookback period and the availability of liquidated damages, even several years of unpaid overtime can result in significant recovery.

Whether you choose to file with the New York Department of Labor or pursue a lawsuit, knowing these rules helps you advocate for yourself. And if you need professional guidance, many employment attorneys offer free consultations and work on contingency—meaning you don’t pay unless you win.

For more information on New York wage and hour protections, visit the New York Wages and Hours Hub.

Legal Disclaimer: This article provides general information about New York overtime laws and should not be considered legal advice. Wage and hour laws are complex, and each situation is unique. If you have specific questions about your overtime pay or believe your employer has violated your rights, consult with a qualified employment attorney or contact the New York Department of Labor for guidance. Laws and regulations may change after the publication date of this article.