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See L&Is Administrative Policy ES.A.9.6 (Exemption from Minimum Wage Act Requirements for Computer Professional Employees). Managers will need to assess staffing patterns and design the work to balance resources and overtime. Public input during the rulemaking processL&I updated the overtime rules through a rulemaking process that began in March 2018. Because the salary. The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. Seattle's minimum wage for large employers will increase from $17 . Critically, the nonexempt classification is not a reflection of the importance of a position. Effective January 1, 2023, student and non-student hourly employeeswith a pay rate below minimum wage will be automatically increased to $15.74 per hour. Here are some key things to know for both federal exemptions and state exemptions, along with some state-specific changes for 2023. Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. Learn how Vigilant membership can help with your complex employment situations. Please contact your HRS Service Team if you have any questions. It will continue to increase annually thereafter based on inflation. This increase impacts the 2022 salary thresholds for overtime exempt workers; specifically, to be exempt from overtime pay, an employee needs to be paid at least $1,014.30 per week ($52,743.60 annually). The following is a comprehensive list of the exempt status salary threshold by state. Y@FLc)uy c? 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. 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. For example: relocation pay. Breaking the Link New Developments on U.S. Six states increased the minimum salary requirement for overtime exemption on January 1, 2023. As a result, employers must pay a salary of at least $1,240 per week beginning January 1, 2023 to qualify for the exemption. As a result of a new state minimum wage, the salary thresholds used to determine which workers are exempt from overtime under state law also increased effective January 1, 2023: Note: Employers of any size may pay exempt computer professionals by the hour, provided they pay at least 3.5 times the minimum wage ($55.09 per hour in 2023). While written notice of these pay increases isnt required except for Seattle employees, advance written notice is certainly a best practice for employee retention and morale. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. Employees aged 14 to 15 years old must earn at least $13.38 per hour in 2023. When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. Seattle and the City of SeaTac have minimum wage rates higher than the state minimum. State DOES NOT count nondiscretionary bonuses, incentive payments and commissions payments toward salary threshold. Departments that have employees physically working in these cities must ensure they are paid in accordance with the city minimum wage ordinance. For additional information, you can contact L&I's Employment Standards program [email protected] or 1-866-219-7321. In many cases, the state criteria are harder to meet than the federal criteria. The Washington state overtime threshold for exempt jobs as of January 1, 2023 is set by state rule at 2 times the state minimum wage and will be $1,259.20 per week. Cities are allowed to set higher minimum wages. 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 effective date for the changes was July 1, 2020. The overtime threshold . If you will be adjusting wages in light of the minimum wage increases, make sure you notify any affected workers. The state of Washington minimum wage will increase from to$14.49 to $15.74 per hour on January 1, 2023. A bill (S1982) introduced in the Senate on June 16 would create a Workers Compensation Ombudsman for Injured Workers. Reclassifying certain staff as nonexempt simply guarantees that those staff members will be paid for all hours worked and paid at time-and-a-half their hourly rate for all hours worked over 40 hours in a workweek, which was Governor Inslees exact goal in making the change. Supreme Court Clarifies the Meaning Salary Basis Under Federal OIRA Calls for Feedback on Recommendations to Encourage More FTCs One-Two Punch on Data Tracking and Health Privacy. This change will impact student and non-student hourly employees, state work study rates and some civil service employees. The specific minimum wage requirements for 2023, shown on the citys minimum wage webpage, will be: Employers are required to provide a written notice to each employee working in Seattle before any change in their wage rate or other terms of employment. As a result of the Colorado Overtime & Minimum Pay Standards Order, the minimum salary required to qualify for the executive/supervisor, administrative, and professional exemptions under state law increased to $961.54 per week on January 1, 2023. The Washington state overtime threshold for exempt jobs as of January 1, 2021 is set by state rule at 1.75 times the state minimum wage and will be $958.38 per week. For the outside sales employee exemption, there is no minimum salary requirement. Vice President for Human ResourcesSU People and Culture Strategies, By using our website, you agree to our cookie policy, Skip to Apply, Request Info, Jobs, Contact links, Institute for Catholic Thought and Culture, Center for Ecumenical and Interreligious Engagement, Washington State 2023 Salary Threshold Change. Given the steep increase in the minimum wage, the states salary requirements for exempt employees are also increasing significantly. This information is not legal advice. Telehealth Update: DEA Issues Long-Awaited Proposed Rule on Prescribing Controlled Navigating the FCC's Universal Service Program: Compliance Requirements for Service Providers, Financial Services: Use of Limitation-of-Liability Clauses in Fiduciary Relationships. Suggest a topic and we might discuss it in a future blog post. 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. Expanding Regulatory Reach over Intermediaries That May Constitute How to Value Digital Assets for Donation to Charity. Washington House . The annually increasing salary thresholds specifically apply to the many university positions within the Executive, Administrative, and Professional exemptions. Since the state threshold that takes effect January 1, 2023 is higher than the federal, employers in Washington State will need to follow the higher state threshold. The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements. These workers are typically "white collar" workers who often have more economic security and relative bargaining power than lower-wage workers. As EPA continues to move toward identifying PFAS as Hazardous Is an OSHA Workplace Violence Standard for the Healthcare Industry on Yellen Calls on World Bank to Take Decisive Action on Climate Change, To Volunteer or Not: The Role of Community Association Board Members. Employer with more than fifty employees - an amount not less than 2.0 times the state minimum wage prescribed in WA Statute 49.46.020 for a forty-hour workweek. The state of Washington has announced increases in the minimum wage rate and the exempt salary thresholds for employees, effective January 1, 2023. The increases mandated by voter-approved Initiative 1433 stopped in 2020. Washington State Proposal Would Radically Increase Exempt Salary Threshold The Washington Department of Labor and Industries recently issued proposed amendments to the state's white-collar. The exact threshold depends on the employer's size: For employers with 1-50 employees, the threshold salary level will be 1.75 times the state minimum wage. Watch future newsletters for an update on the increased rate for 2023. 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. Human Resources will provide training and share best practices to guide supervisors through the impact of these changes. The salary rates may vary depending on the city/county where an employee resides/works in California. Although the federal minimum wage has been $7.25 for years, 29 states and Washington, D.C., have higher rates, and many new wage hikes took effect this year. The 2023 threshold of $65,484 will be approximately 24.1% higher than the 2022 threshold. Thank you for suggesting a question for our next Q&A post! Federal updated its highly compensated employee salary threshold to $107,432/yr. The NLR does not wish, nor does it intend, to solicit the business of anyone or to refer anyone to an attorney or other professional. The cities of Seattle and SeaTac also have higher minimum wage requirements that are increasing in 2023. 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved. To be considered "exempt," these employees must generally satisfy three tests: Note: There are also exemptions for outside sales and computer professional employees. Michigan PFAS Challenge Arguments Briefed For The Court. Unlike teaching professionals, however, positions falling within the Executive, Administrative, or Professional exemptions are subject to a state-required minimum salary to be classified as exempt.. 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. The Washington State minimum wage will see a steep increase in 2023, due to the 8.6% rate of inflation. The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. The following is a comprehensive list of the exempt status salary threshold by state. Wisconsin Governor Announces Closures to Non-Essential Businesses, Senate Bill Would Create a Workers' Compensation Ombudsman, The FFCRA: DOL Releases Updated Guidance on Exempt Health Care Providers and Emergency Responders. Large employers with 51 or more employees must pay exempt employees a weekly salary of at least $1,259.20 ($65,478.40 per year). The salary threshold is adjusted for inflation each year by L&I, and will increase from $107,301.04 (the 2022 rate) to $116,593.18 for 2023. Governor Evers stated he would issue the order on Tuesday, March 24, 2020. On January 1, 2021, Washington's minimum wage will increase from $13.50 to $13.69. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. 1/1/2023 . "It Ain't Over 'Til It's Over" - Use Of A PTO Introduces Trademark Decisions and Proceedings Search Tool, FDA Issues Draft Guidance on Labeling of Plant-Based Milk Alternatives, Government Wins $43 Million Verdict in False Claims Act Case, BETO Will Host March 23 Listening Session on Next Billion-Ton Report. For small businesses (1-50 employees), an exempt employee must now earn a salary of at least 1.75 times the minimum wage, or $1,101.80/week. The hearings were held in July and August 2019 in Tumwater, Seattle, Bellingham, Ellensburg, Kennewick, Spokane and Vancouver. 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. . $16.50 per hour (up from $15.75 per hour) for employees of smaller employers who receive medical benefits worth at least $2.19 per hour or earn at least that much per hour in tips. The Washington state overtime threshold for exempt jobs as of January 1, 2023 is set by state rule at 2 times the state minimum wage and will be $1,259.20 per week. For more information on overtime exemptions in Washington, see our Legal Guide, State Laws on the White Collar Exemption from Overtime. This means an employee exempt from overtime pay must earn at least $1,101.80 a week or $57,293.60 a year. 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. In other cases, employers may need to increase salaries for exempt employees. The National Law Review is a free to use, no-log in database of legal and business articles. The salary threshold is adjusted for inflation each year by L&I, and will increase from $107,301.04 (the 2022 rate) to $116,593.18 for 2023. 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. New salary threshold implementation schedule, Threshold phase-in schedule for computer professionals paid hourly. 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. Federally Recognized Holidays, Employer Considerations for DOLs New AEWR Rule. The list does not include the city/county thresholds for California. Effective Jan. 1, 2020, the federal minimum salary threshold increased to $684 a week. Use tab to navigate through the menu items. es.a.9.9 salary thresholds page 1 of 6 6/26/2020 administrative policy state of washington department of labor and industries employment standards title: salary thresholds for number: es.a.9.9 exemption from minimum wage act for white-collar workers issued: 6/26/2020 Ogletree Deakins Seattle office and will continue to monitor and report on Washington State wage and hour developments and will post updates to the firms Washington and Wage and Hour blogs as additional information becomes available. L&I has created an online overtime resource center to assist employers in understanding these salary requirements, including charts, fact sheets, workshops, and webinars. For 2022, the wage for 14 and 15 year olds will be $12.32 per hour. Desperate Times, Desperate Measuring Cups FTC Brings Enforcement Trending in Telehealth: February 20 26, 2023, IRS Sets Deadline For Using 401(K) Plan Forfeitures, How Generative AI Generates Legal Issues in the Games Industry, DOJ Announces New Nationwide Voluntary Self-Disclosure Policy. 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). 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. 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 . 2023 salary thresholds set for overtime exempt employees, Chapter 296-128 of the Washington Administrative Code. Under state law, 14 and 15-year-olds can be paid 85% which will be $13.38 in 2023. Noncompete Agreements: Washington law prohibits noncompete agreements with employees who earn less than the state's annual threshold. HRS will assist colleges/areas in evaluating the impact of these changes. This process is automatic. You will be redirected once the validation is complete. The new state minimum wage for 2023 is $15.74 an hour. The January 1, 2023, minimum wage increase will impact civil service salary range 30, step A, B and C; salary range 31, step A and B; and salary range 32, step A. Employers seeking to classify employees as exempt from overtime should ensure employees meet both federal and state exemption criteria. Y321N-!s%/ 6aG3TbAx1}Net3BIYr[@KdqZ?w*. Visas for F and M Students Can Now Be Issued 365 Days Ahead of Program Start Date. To be classified as exempt from New York's overtime requirements, executive and administrative employees must meet minimum salary requirements and satisfy certain duties tests. Part 1 training plans. An explanation of this requirement and a sample notice form can be found on Seattles wage theft ordinance webpage. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. Its Here The New National Cybersecurity Strategy. Their current minimum wage is $17.54 per hour. The FLSA allows for exemptions from these overtime and minimum wage requirements for certain employees who work in administrative, professional and executive jobs (known as "exempt" employees). Exempt computer professionals: The minimum salary rate for exempt computer professionals who are paid hourly will also increase as of January 1, 2023. Small employers (1-50 employees) will have to pay at least 1.75 times the state minimum wage ($1,101.80 a week), and large employers (51 or more employees) will pay at least 2 times the minimum wage ($1,259.20 a week). Employers Beware: Non-Disparagement and Confidentiality Covenants in Consultation Paper On Review of Corporate Governance Norms For A High Californias War On The Fast-Food Industry Continues.