Happy New Year: Will Employees Receive a Salary Bump or Become Overtime-Eligible?

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Helena I. Poch Ciechanowski

November 21, 2025

It’s that time of the year again.  As 2025 comes to a close, many of us will try to wipe the slate clean; turn the page on the calendar; put the good, bad, and ugly in the rearview mirror; and shift into a positive outlook for 2026.  Among other things, it’s the time for giving thanks, the season of lights, first snowfalls, holiday parties, religious and cultural celebrations, making resolutions, and end-of-year bonuses.

For business owners and HR professionals across the United States, it is also that time of the year when one must pay close attention to various changes to state minimum wage laws across the country.  After all, January 1 is not just New Years Day.  It is also the most common date for laws, especially wage and hour laws, to become effective.

*Pro Tip* When the minimum wage increases in your state, the minimum salary threshold for workers to qualify as exempt from overtime pay (exempt workers) also will typically increase, necessitating an adjustment to salary tiers and classifications across the board.

This year, FIVE states adjusted their minimum wages with a corresponding increase to the applicable minimum salary for exempt workers:

• California: $1,352/week or $70,304 annually
• Colorado: $1,111.23/week or $57,783.96 annually for Executive Administrative Professional (EAP) exempt employees and highly technical computer employees.  Keep in mind that these thresholds are higher if your employment agreements include a non-competition or non-solicitation provision.
• Maine: $871.16/week or $45,300.32 annually
• New York:
  • $1,275/week or $66,300 annually in New York City/Nassau County/Suffolk County/Westchester County
  • $1,199.10/week or $62,353.20 annually in all other areas of New York
• Washington State: $1,541.70/week or $80,168.40 annually.

The author of this article, Helena Ciechanowski, is a member of the Bars of Pennsylvania and New Jersey. This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice in Pennsylvania, New Jersey, California, Colorado, New York, Washington, or any other jurisdiction, nor does it establish an attorney-client relationship with any reader of the article where one does not exist. Always consult an attorney with specific legal issues.