This same threshold applies to part-time employees; it is not pro-rated for employees who are less than full-time. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. Waters of the United States and Winston Churchill. The Emergency Family and Medical Leave Expansion Act (EMFLEA) and the Emergency Paid Sick Leave Act (EPSLA) authorize the DOL to issue regulations to exempt health care providers and emergency responders from eligibility for coverage under the FFCRA. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. Their current minimum wage is $17.54 per hour. Accordingly, please do not send us any information about any matter that may involve you unless we have agreed that we will be your lawyers and represent your interests and you have received a letter from us to that effect (called an engagement letter). Because the salary. In 2019, at the direction of Governor Inslee, the Washington State Department of Labor & Industries (L&I) published a new schedule of minimum salary thresholds through January 1, 2028. Seyfarth Synopsis: As they have each year since 2016, the minimum wage and exempt salary threshold will increase for certain New York employers effective December 31, 2021. The Future of Stablecoins, Crypto Staking and Custody of Digital White House Climate and Environmental Justice Screening Tool. Details are available on the Department of Labor and Industries (L&I) Washington minimum wage webpage. Employees aged 14 to 15 years old must earn at least $13.38 per hour in 2023. Our new tool provides background on the upcoming changes in the overtime rules, and also includes a tool that can help determine if an employee likely qualifies as exempt or not. The service requires full JavaScript support in order to view this website. Note: In Colorado, an exempt employees salary generally must also be sufficient to satisfy the minimum wage for all hours worked in a workweek. Effective Jan. 1, 2020, the federal minimum salary threshold increased to $684 a week. The state anticipates that by 2028, nearly 260,000 positions that were previously exempt under the Minimum Wage Act will be impacted. GT's The Performance Review Episode 19: Is the Fight Over AB 51 5 Reasons Community Associations Need an Attorney That Specializes in New York Proposes Regulatory Review and Approval of Material Health CMS Issues Long-Awaiting Medicare Advantage RADV Final Rule, Preventing the Use of Cryptocurrencies to Evade Sanctions. Recent CFPB Actions Focus on Protecting Military Families, New and Updated Guidance on the Scope of the UK Plastic Packaging Tax. BIPA ALERT: Illinois Supreme Court Opens the Door to Punitive, President Biden to Nominate Julie Su as New Secretary of Labor, The European Unitary Patent: Why Retailers Should Care, New York City Employers Prepare for AI Bias Law [VIDEO], Administration's WOTUS Rule Muddies Jurisdictional Waters. See our Legal Guide, Noncompetition Agreements, for guidance on additional requirements in Washington. Exempt computer professionals who are paid on an hourly versus salary basis must earn at least $55.09 per hour (3.5 times the minimum wage). Due to an increase in the state's minimum wage, the minimum salary required for the administrative, professional and executive exemptions from overtime under state law increased to $796.17 per week on January 1, 2023. The L&I salary threshold will change annually through 2028. In 2023, large employers must pay exempt employees at least $1,259.20 per week ($65,478.40 per year) to meet the states minimum salary requirement to be exempt from overtime requirements. The following 5 Part Strategy was voted by the UCC Executive Committee to help navigate the implications of the Washington Salary Threshold on our Conference: Radical prayer We ask for your devoted prayers and financial support for our 2022 Tithe to exceed $500,000 above budget. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. See new exemption . Employees with a combination of FTE and salary that falls below $1,259.20 per week will be converted to an overtime eligible job code no later than the last week of December 2022. For additional information, visit Washington State Department of Labor and Industries Changes to Overtime Rules website and the Salary Threshold Implementation Schedule. The Washington State Department of Labor & Industries (L&I) determines minimum thresholds using a multiplier of the state minimum wage. EPA Releases Proposed Approach for Considering Cumulative Risks under Revised Colorado Privacy Act Rules Adopted for Review by Colorado AG. The salary threshold under federal law is only $684 per week, so employers in Washington must pay at the higher state level. HR will provide more information in the coming days, including supervisor guidance and direct communications to staff colleagues directly impacted. 2023 Exempt Status Salary Threshold by City and State . Employers seeking to classify employees as exempt from overtime should ensure employees meet both federal and state exemption criteria. At least 1.75 times the minimum wage, or $1,101.80 per week ($57,293.60 per year), At least 2.0 times the minimum wage, or $1,259.20 per week ($65,478.40 per year). A bill (S1982) introduced in the Senate on June 16 would create a Workers Compensation Ombudsman for Injured Workers. DC Circuit to Disputes Ancillary to Patent Matters: You Cant Sit Consumer Fraud PFAS Cases Continue To Rise. Federally Recognized Holidays, Employer Considerations for DOLs New AEWR Rule. Washington Visit Here. To be considered "exempt," these employees must generally satisfy three tests: Note: There are also exemptions for outside sales and computer professional employees. Chris Edison, L&Is salary implementation threshold schedule, State Laws on the White Collar Exemption from Overtime, ADA: Reasonable Accommodation and the Interactive Process, Vigilant Member Hiring & Retention Survey, $18.69 per hour (up from $17.27 per hour) for large employers (more than 500 employees worldwide); or, $18.69 per hour for smaller employers (500 or fewer employees) who dont pay at least $2.19 per hour toward an employees medical benefits and/or if the employee doesnt earn at least that much per hour in tips; or. Tips: The minimum wage rates in both Seattle and SeaTac continue to be higher than the statewide rate in Washington. Washington's minimum wage is $14.49 per hour, up from $13.69 per hour in 2021. Expanding Regulatory Reach over Intermediaries That May Constitute How to Value Digital Assets for Donation to Charity. In addition to the change in the minimum salary level, the new rules update the job duties tests. . Her practice extends to private sector clients. White House Reviewing Proposed Regulations on Reinstated Superfund You Dont Need a Machine to Predict What the FTC Might Do About Is It Compensable? For January 1, 2023, the minimum salary threshold to satisfy the laws Executive, Administrative and Professional exemption will be $65,478.40 per year ($1,259.20 per week). Justice and Commerce Departments Announce Creation of Disruptive United States Department of Justice (DOJ), Biden Executive Order 14091 Strengthens Equity for Federal Agencies. Seattle's minimum wage for large employers will increase from $17 . It will continue to increase annually thereafter based on inflation. Exempt salary: As a result of the minimum wage increase for nonexempt employees, the minimum salary for white-collar workers who are exempt from overtime will increase as of January 1, 2023, as well. If an employee is covered by both federal and state law but doesn't meet both sets of tests, employers should consult with counsel to determine how they should classify the employee in that particular situation. In general, these workers must be salaried and paid a minimum specified salary level, and must primarily perform executive, administrative, professional, outside sales or computer professional duties as defined by state regulations. Under state law, 14 and 15-year-olds can be paid 85% which will be $13.38 in 2023. Human Resources will provide training and share best practices to guide supervisors through the impact of these changes. They will be paid for all hours worked, and time and a half (or compensatory time at time and a half) for all hours worked over 40 in a workweek. Mr. Pankratz has experience successfully representing employers in executive termination, non-compete and unfair competition disputes. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. The Department of Labor & Industries (L&I) has updated the employment rules that determine which workers in Washington are required by law to be paid at least minimum wage, earn overtime pay, and receive paid sick leave and other protections under the state Minimum Wage Act. Beginning January 1, 2022, the Washington State's minimum wage will be $14.49 per hour, increasing from the current minimum wage of $13.69 per hour. Please contact your HRS Service Team if you have any questions. Federal law establishes a minimum salary of $684 per week for the professional exemption. The threshold salary is required regardless of how many hours an exempt employee works in the week, so even a part-time employee must be paid at this new higher salary (not a prorated portion of it) to satisfy the overtime exemption. Breaking the Link New Developments on U.S. 2023-1 providing guidance on wage and hour topics related to employees who, Accident prevention is a journey, not a destination. In Minnesota, if an employer's gross revenue was $500,000 or more, then the minimum wage increased to $10.59 while an employer's whose gross revenue was less than $500,000 only needs to . If you will be adjusting wages in light of the minimum wage increases, make sure you notify any affected workers. Some states also bumped their exempt . The Temporary Employment and Student Employment Classification/Compensation Plansareavailable on theHRS website. Federal updated its highly compensated employee salary threshold to $107,432/yr. Check outtheovertime rulemaking documents. Further information on federal, state, and major locality wage and hour laws is available in the firms OD Comply: State Wage & Hour subscription materials, which are updated and provided to OD Comply subscribers as the law changes. As a result, professional staff, contract covered staff, and classified non-union overtime positions that do not meet . She has successfully defended cases before the United States Court of Appeals for the Ninth Circuit and the Washington State Court of Appeals. Please enable cookies on your browser and try again. Mr. Pankratz has extensive experience representing employers both locally and nationally on various employment Brenda Bannon is of counsel in the Seattle office of Ogletree Deakins and joined the firm in March 2019. For the outside sales employee exemption, there is no minimum salary requirement. Dirty Steel-Toe Boots, Episode 16: Investigations and the OSH Acts DOE Issues FOA for Carbon Capture Large-Scale Pilots and Carbon A Forward Look at IRAs Sweeping Impact on the EV Sector [PODCAST]. Mr. Pankratz represents corporations and management in a myriad of employment-related and complex commercial matters, including litigation involving discrimination, retaliation, harassment, wage and hour, wrongful termination, ADA and FMLA leave issues, and other matters in state and federal courts and administrative agencies. Locking Tik Tok? The new state minimum wage for 2023 is $15.74 an hour. The public submitted almost 2,300 comments by email, fax, and mail, and 182 people testified during public hearings during this process. In 2023, small employers (one to no more than fifty employees) must pay exempt employees 1.75 times the minimum wage, meaning that exempt employees of small employers must earn at least $1,101.80 per week ($57,293.60 per year) to meet the minimum salary requirement to be exempt from overtime requirements. In a recent decision from the U.S. Supreme Court, an employee who was paid on a daily rate basis and earned more than $200,000 annually, The U.S. Department of Labor (DOL) recently released a Field Assistance Bulletin No. Two local jurisdictions have higher minimum wages and different labor rules than Washington State. For example: relocation pay. The changes are summarized below: To be classified as exempt from overtime under state law (Alaska Statute 23.10.055), bona fide administrative, professional and executive employees must satisfy certain salary and duties tests. Managers will need to assess staffing patterns and design the work to balance resources and overtime. g Please enable JavaScript on your browser and try again. AG Clamps Down on Local Solar and Battery Storage Moratoria. This change will impact student and non-student hourly employees, state work study rates and some civil service employees. Keep in mind that reclassification means more than just . The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. For these two exemptions, the state generally sets the minimum salary requirement at 75 times the state minimum wage, which differs based on the region of the state. How Modern Manufacturing Plants Can Protect Against Ransomware, FTC Will Host May 23, 2023, Workshop on Recyclable Claims and the Appellate Court Affirmed An Order Denying A Beneficiarys Request For An Overview of Why Class Action Privacy Lawsuits May Have Just Gotten Gold Dome Report Legislative Day 26 (2023). This process is automatic. The state previously used two job duties tests that have been reduced to one test with language that now more closely aligns with the federal job duties tests. Exempt computer professionals who are paid on an hourly versus salary basis must earn at least $55.09 per hour (3.5 times the minimum wage). 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C. Washington House . Under the states exemption for highly technical computer employees, the employee may be paid by salary (at least $961.54 per week in 2023) or by the hour ($31.41 per hour in 2023). I am writing today about a change in state regulations that will affect many of our staff colleagues as we enter the new calendar year. The 2023 minimum wage rate in Washington State will increase to $15.74 per hour for employees sixteen years of age and older, the Washington State Department of Labor & Industries announced on September 30, 2022. The content and links on www.NatLawReview.comare intended for general information purposes only. (s#%=]XzqEh$P=%D&H.&Ab}d!,x\pK+!r dev"! Licenses for Exports to Are You Ready for the UPC? This means that the universitys Executive, Administrative or Professional staff members who earn less than $65,478.40 as of January 1, 2023along with tens of thousands of similarly situated employees across the statewill no longer be exempt. HR will reclassify those employees as nonexempt on January 1, 2023.