What is an Exempt Employee in NY?

Hiring in New York is never boring—especially when you throw employment classifications into the mix. If you're a recruiter or hiring manager, you've probably come across the terms "exempt" and "non-exempt" and thought, Wait… what exactly qualifies someone as exempt again? You're not alone.

Classifying employees correctly isn’t just about ticking legal boxes—it impacts payroll, team morale, legal compliance, and even the hiring strategy. In this blog, we’ll break down what it means to be an exempt employee in New York in 2025, how the rules have changed, what recruiters need to watch for, and how EasySource simplifies your candidate sourcing process.

Let’s demystify this together— 

What Does “Exempt” Actually Mean?

Let’s start with the basics.

In employment terms, "exempt" refers to employees who are exempt from receiving overtime pay under the Fair Labor Standards Act (FLSA). That means if they work more than 40 hours a week, they don’t get time-and-a-half pay like non-exempt employees do.

But that exemption doesn’t apply to everyone. There are specific salary thresholds and job duty requirements an employee must meet to be legally classified as exempt.

The 2025 Salary Thresholds in New York

As of January 1, 2025, New York State updated the salary minimums for exempt workers. Here’s how it breaks down:

• New York City, Long Island, and Westchester County:
  ➤ $64,350 annually (or $1,237.50 per week)
   
• All other areas in New York State:
  ➤ $60,405.80 annually (or $1,161.65 per week)

If you’re hiring in NYC or any of the downstate regions, that’s your new baseline for exemption. If a candidate doesn’t meet this salary, they cannot be classified as exempt—no matter how fancy their title is.

The Duties Test: It’s Not Just About the Pay

Many hiring managers assume that if someone’s on a salary and has a leadership title—boom, they’re exempt. Nope! That’s a common (and costly) mistake.

To qualify as exempt, employees must also pass the “duties test.” This test looks at what the person actually does on a day-to-day basis, not just what their title suggests.

Let’s break this down into the major exemption categories:

1. Executive Exemption

To qualify:

• The employee’s primary duty must be managing a business or department.
• They must regularly supervise at least two full-time employees.
• They should have authority over hiring, firing, or significantly influence those decisions.

Think: Directors, Plant Managers, Store Managers (with real authority—not just in title).

2. Administrative Exemption

To qualify:

• The employee performs office or non-manual work directly related to business operations.
• They must exercise discretion and independent judgment on significant matters.

Think: HR professionals, finance analysts, operations coordinators.

3. Professional Exemption

To qualify:

• The role requires advanced knowledge in a field of science or learning.
• The knowledge is typically obtained through a prolonged course of specialized education.

Think: Doctors, lawyers, teachers, engineers.

Pro tip for recruiters: Always ask your hiring managers what the actual job duties involve. Titles can be deceiving.

Misclassification: A Risk You Can’t Afford

Misclassifying an employee as exempt when they should be non-exempt can lead to serious legal trouble.

We’re talking:

• Back pay for unpaid overtime
• Fines and penalties
• Lawsuits
• Damage to company reputation
   

In 2023 alone, U.S. employers paid hundreds of millions in FLSA violations—many of which stemmed from misclassification. Don't let your organization be next.

Real Talk: Why Is This So Complicated?

Because labor law is… well, nuanced. Federal and state laws often intersect, and in New York, state law usually takes the stricter stance. For instance, while the federal FLSA sets a lower salary threshold ($684/week), New York’s 2025 thresholds are much higher—so you must follow the state’s rule.

Recruiters, Here’s What You Need to Do

As a recruiter or talent acquisition specialist, you're on the front lines. Here’s how you can make sure you’re sourcing and screening the right exempt candidates:

✅ Clarify Job Duties Early

Before posting a job or reaching out to candidates, make sure the job description aligns with exempt criteria. Push back on vague or misleading titles if needed.

✅ Know Your Thresholds

Bookmark those 2025 salary numbers—seriously. Use them during candidate screening and negotiations.

✅ Flag Risky Roles

If a role skirts the edge of the exemption criteria (e.g., low-salary managers, hybrid admin roles), bring in HR or legal early.

The Easy Way to Find Exempt-Ready Talent: EasySource

Let’s face it—finding qualified exempt candidates is already tough. Add in salary filters, duties qualifications, and geographic pay scales, and you’ve got a headache waiting to happen.

That’s where EasySource changes the game.

What Is EasySource?

EasySource is the world’s first fully automated talent sourcing tool, built specifically for recruiters like you. Whether you're sourcing for exempt executive roles or highly skilled professionals, EasySource delivers.

Here’s how it helps you:

• AI-Driven Filters: Easily target candidates based on location, skills, education, salary range, and even U.S. work authorization.
   
• Faster Pipeline Creation: Build qualified talent pipelines for exempt-level roles with just a few clicks.
   
• ChatGPT Integration: Personalize outreach messages automatically—across LinkedIn and other platforms.
   
• Automated Engagement: Schedule and send multi-channel messages without lifting a finger.

Imagine sourcing an exempt-level operations manager in NYC, filtering for $65K+ salary expectation, 5+ years experience, and MBA credentials—all in 30 seconds. 

With EasySource, that’s not wishful thinking—it’s reality.

Let’s Recap: Exempt Employees in New York (2025 Edition)

If you’re hiring in New York, especially in cities like NYC or White Plains, here’s what you absolutely must know:

Final Thoughts: Stay Smart, Stay Compliant

Exempt vs. non-exempt isn't just an HR distinction—it's a critical hiring decision with legal and financial implications. As a recruiter, you’re not just filling roles; you’re building the foundation of compliant, efficient, and well-compensated teams.

By understanding the 2025 exemption rules in New York—and leveraging tools like EasySource—you can make smarter hiring decisions, avoid compliance pitfalls, and supercharge your sourcing strategy.

Let’s stop guessing, and start hiring right.

Ready to streamline your hiring process and find the perfect exempt candidates in New York?