New York · Overtime · Updated April 2026

Both halves required: salary AND duties.

New York's exempt classification has two independent gates — salary threshold AND duties test. Both must be met for an employee to be exempt from overtime. Because NY's salary thresholds are roughly double the federal floor, many workers who would be exempt under federal FLSA are non-exempt under NY law. NY law controls because it's more favorable to the employee.

Salary Gate
Regional ($66K/$62K)
Duties Gate
Federal-style
Authority
12 NYCRR § 142-2.14
Active

Two-Gate Exempt Classification

Validates both salary and duties at the moment of classification. Salary alone is necessary but not sufficient. Duties test attestation logged for audit defense.

Block exempt save without HR duties attestation
Critical · misclassification risk per role audit
Always running

What the rule does at every classification or reclassification.

The hero card configuration: Block without duties attestation, Critical on misclassification risk audit. Here's what each does at runtime.

Block · exempt without duties attestation

Even when salary clears the threshold, exempt classification requires HR attestation that the worker's duties qualify under one of the recognized exemptions (executive, administrative, professional). Without the attestation, the classification fails.

Critical · misclassification risk audit

When a role is configured as exempt, Teambridge runs a misclassification risk audit: comparing actual time-tracking data to expected exempt duties. If most of the role's logged time is on non-exempt-qualifying tasks, the role surfaces as a Critical risk.

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The rule, plainly stated

Three exemptions, three duties tests, two salary thresholds.

Each exemption has its own duties test. The salary thresholds differ between executive/administrative (regional NY) and professional (federal). Computer professionals can also qualify under federal rules.

12 NYCRR § 142-2.14 and 29 CFR § 541: An employee employed in a bona fide executive, administrative, or professional capacity shall be exempt from overtime requirements if the employee meets both: (a) the salary basis test set forth in this section; and (b) the primary duties test for the applicable exemption. The duties tests are those set forth in 29 CFR Part 541 of the federal regulations, which apply identically to exemptions under New York Labor Law where the salary basis test is met.

Executive exemption — duties

Primary duty must be management of the enterprise or a customarily recognized department. Must regularly direct the work of two or more other employees. Must have authority to hire/fire (or particular weight given to recommendations on hiring, firing, advancement). Most retail or food-service shift supervisors do NOT meet this — they typically perform the same work as their direct reports.

Administrative exemption — duties

Primary duty must be office or non-manual work directly related to management or general business operations of the employer. Must include exercise of discretion and independent judgment with respect to matters of significance. The 'matters of significance' element is heavily litigated — production work and routine administrative tasks typically don't qualify.

On autopilot

Teambridge enforces both gates and audits the duties side.

Most NY misclassification mistakes happen at the duties side, not the salary side. Salary is easy to verify; duties are subjective. Teambridge audits the duties side using actual time-tracking data.

01 · Salary gate at classification

Regional thresholds applied.

Executive/administrative require regional NY salary thresholds. Professional requires federal threshold. Computer professionals get federal computer-pro test. Salary below threshold blocks the classification.

02 · HR duties attestation

Logged with classification record.

Salary alone insufficient. HR must attest in writing that the worker's primary duties meet the chosen exemption's duties test. Attestation includes which exemption and rationale. Logged for audit.

03 · Time-tracking duties audit

Actual task composition vs. exempt criteria.

If the worker performs detailed task tracking, Teambridge analyzes time spent on exempt-qualifying duties vs. non-exempt tasks. Mismatches surface as Critical alerts for HR review.

04 · Annual reclassification check

Triggered by threshold changes.

When NY thresholds update (annually after 2027), existing classifications below the new threshold surface for review. HR can reclassify, request salary adjustment, or document waiver.

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FAQ

People also ask.

What are the two gates for NY exempt classification?
Salary test (the worker must earn at least the applicable salary threshold — $66,300 downstate or $62,353 upstate for executive/administrative; $35,568 federal for professional) AND duties test (primary duties must meet the criteria for the chosen exemption). Both required.
Why does NY classify more workers as non-exempt than federal law?
NY's salary thresholds are roughly double federal. An NYC manager earning $900/week is exempt under federal law (above $684 federal threshold) but non-exempt under NY law (below $1,275 NY threshold). NY law controls because it's more favorable to the employee.
What's the duties test for executive exemption?
Primary duty must be management of an enterprise/department. Must regularly direct two or more employees. Must have hiring/firing authority (or significant influence). Most shift supervisors fail this test because they perform the same work as their direct reports.
What's the duties test for administrative exemption?
Primary duty must be office or non-manual work directly related to management or general business operations, requiring exercise of discretion and independent judgment with respect to matters of significance. The 'matters of significance' element is heavily litigated.
What about computer professionals?
Computer software employees can qualify as exempt under the federal computer professional rules ($684/week or $27.63/hour). NY follows federal here — there's no separate NY computer professional rule.
How does Teambridge audit the duties side?
If the role uses detailed task tracking, Teambridge analyzes time spent on exempt-qualifying duties (management, independent judgment) vs. non-exempt tasks (production work, routine administrative). Mismatches surface as Critical alerts. The salary attestation is structural; the duties attestation requires HR sign-off and is logged for audit defense.