The list does not include the city/county thresholds for California. Sample language The phased in salary thresholds can be found at WAC 296-128-545. $('.container-footer').first().hide();
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The equal pay provisions of the FLSA prohibit sex-based wage differentials between men and women employed in the same establishment who perform jobs that require equal skill, effort, and responsibility and which are performed under similar working conditions. To be classified as exempt from overtime under state law, administrative, professional, and executive employees must satisfy certain salary and duties tests and receive a salary that exceeds 3000 times the state minimum wage. Exempt computer employees may be paid at least $684 * on a salary basis or on an hourly basis at a rate not less than $27.63 an hour. Flagstaff: $12.80 per hour: This is a $0.65 increase from the 2021 rate of $12.15 per hour. In addition to the FLSA, WHD enforces and administers a number of other labor laws. If an employees tips combined with the employers direct wages of at least $2.13 an hour do not equal the minimum hourly wage, the employer must make up the difference. While employers are not required under the FLSA to provide breaks to nursing mothers who are exempt from the overtime pay requirements of Section 7, they may be obligated to provide such breaks under State laws. Partial overtime pay exemptions apply to employees engaged in certain operations on agricultural commodities and to employees of certain bulk petroleum distributors. Will employees have to meet both the threshold salary test AND the duties test to be considered overtime exempt under the WMWA? Starting in 2021, the state salary threshold will exceed the federal threshold. Chicago: $15.00 per hour (employers with 21 or more employees); $14.00 per hour for smaller employees; tipped employees must be paid at least $9.00 per hour for larger employers and $8.40 for smaller employers. Illinois. Where violations are found, they will recommend changes in employment practicesin employment practices to bring an employer into compliance. Workers who customarily receive more than $100 per month in tips must still receive the minimum hourly wage in the City, so if they arent earning enough in tips the employer must pay them enough to make up the difference. If the salary is for a half month, it must be multiplied by 24 and the product divided by 52 weeks to get the weekly equivalent. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) {
In addition to the salary, half the regular rate, or $4.80, is due for each of the 10 overtime hours, for a total of $528 for the week. By 2028 the annual salary threshold will be $78,624.00. Do academic advisors at community colleges qualify for exemption from minimum wage and overtime requirements under WMWA? The Trump administration. The FLSA (Fair Labor Standards Act) employment law requires all employers to give eligible (or "non-exempt") workers at least the minimum wage for hours worked. Exempt employees, because of their rate of pay and type of work that they do, are not eligible for overtime pay for hours worked over 40 in a workweek. Virtual & Washington, DC | February 26-28, 2023. After the Trump administration started the rulemaking process anew, in September 2019, DOL issued a new final rule raising the minimum salary level required for exemption from $23,660 annually to $35,568 annually. The right to file a comment with the Ombudsman is in addition to any other rights a small entity may have, including the right to contest the assessment of a civil money penalty. The FLSA and the State Minimum Wage Act exempt employees who work in a bona fide executive capacity from the overtime pay requirements. A space temporarily created or converted into a space for expressing milk or made available when needed by the nursing mother is sufficient provided that the space is shielded from view, and free from any intrusion from co-workers and the public. So far there have been no changes for 2022. Non-exempt Members may download one copy of our sample forms and templates for your personal use within your organization. Does L&I hold the same opinion under the WA Minimum Wage Act? Employees must be paid a salary of at least $684 per week/$35,568 annually, and the employee's duties must fall within one of the so-called "white collar exemptions." Send request toState HRClassification and Compensation . Subscribe. An employee whose primary duty is in an overtime eligible position will carry that eligibility over to the nonexempt assignment, while an employee whose primary duty is in an overtime exempt position can perform work that would be overtime eligible without losing the exemption. The new rate will take effect Jan. 1, 2020. Las Cruces: $11.50 per hour for nontipped employees and $4.60 per hour for tipped employees. SHRM offers thousands of tools, templates and other exclusive member benefits, including compliance updates, sample policies, HR expert advice, education discounts, a growing online member community and much more. Currently, the FLSA's salary threshold is $35,568, but some states have a higher cutoff for exempt workers. Nondiscretionary bonuses and incentive . For an hourly part-time employee - what happens if they dont work the same number of hours each week and some weeks they are below the salary threshold and some weeks they are above it? In general, hours worked includes all time an employee must be on duty, or on the employers premises or at any other prescribed place of work, from the beginning of the first principal activity of the work day to the end of the last principal work activity of the workday. Effective Jan. 1, 2020, the federal minimum salary threshold increased to $684 a week. p.usa-alert__text {margin-bottom:0!important;} .usa-footer .container {max-width:1440px!important;} Agency's Targets In December, the DOL announced it had plans to revisit the salary threshold for "white-collar" exempt employees under the FLSA. Both federal law (Fair Labor Standards Act or FLSA) and state law (New York Minimum Wage Act and applicable regulations) generally require the payment of overtime wages for work performed after 40 hours per week. The FLSA requires employers to keep records on wages, hours, and other items, as specified in DOL recordkeeping regulations. Under the WMWA, the standard salary threshold is higher and more favorable to the worker. It may begin on any day of the week and at any hour of the day established by the employer. Casual babysitters and persons employed as companions to the elderly or infirm. In such a case, the Department will not seek the same back wages and liquidated damages on that employees behalf. Also prohibited are partial displacements such as reducing employees hours, wages, or employment benefits. Your session has expired. Since state law is more favorable, employees who are currently exempt under FLSA may now be overtime eligible under state law requiring the employer to provide overtime pay to those employees. The Department of Labor issued a final rule on Sep. 24, 2019increasingthe salary-level threshold for white-collar exemptions to $684a week from $455 a week. Following are examples of exemptions which are illustrative, but not all-inclusive. Overtime-eligible employees must be compensated with overtime pay or compensatory time for all hours worked over 40 in a single workweek. Each agencys Human Resource Office determines the overtime eligibility status for all positions (Work Period Designation-WPD)based upon criteria established by the US Department of Labor. It is up to the agency to apply the new salary basis test so that employees would switch from overtime eligible to overtime exempt mid-pay range. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. The employee is entitled to at least one and one-half times $8.00, or $12.00, for each hour over 40. regardless of what happens to the now-blocked federal overtime rule. The overtime threshold is a salary level used to determine which employees are . For information regarding academic . Example: An employee paid on a piecework basis works 45 hours in a week and earns $405. If you are represented, employers and employees should reviewcollective bargaining agreements for specific requirements concerning work period designations and overtime eligibility. . On December 31, 2021, the minimum wage is increasing in every region except New York City. It depends. The new salary threshold is $958.30 per week meaning that if the position calls for the employee to work 40 weeks out of the year, then the ability to exempt the position from WMWA would depend on whether or not the employees weekly salary exceeds $958.30 per week. All employees that hold positions determined to be covered under the mandatory overtime provisions of the FLSA are covered. Hospitals and residential care establishments may adopt, by agreement with their employees, a 14-day work period instead of the usual 7-day workweek if the employees are paid at least time and one-half their regular rates for hours worked over 8 in a day or 80 in a 14-day work period, whichever is the greater number of overtime hours. Santa Fe City: $12.31 per hour for nontipped employees. If an agency has already determined that a position meets the exemption criteria and there have been no substantive changes to the position duties since it was last reviewed, is there any reason why the agency would need to review it again before changing the employee to overtime exempt once they reach the salary threshold? The frequency of breaks needed to express milk as well as the duration of each break will likely vary. Will seasonal employees be held to the $49,831.60 annual threshold or the $958.30 per week threshold? Cook County: $13.00 per hour; $7.20 per hour for tipped employees, Portland: $13.00 per hour; $6.50 per hour for tipped employees, Montgomery County: $15.00 + CPI increase for large employers (51 or more employees) as of July 1, 2022; $14.50 for midsized employers (11 to 50 employees) as of July 1, 2022; $14.00 for small employers (10 or fewer employees) as of July 1, 2022, Minneapolis: As of July 1, 2022, $15.00 per hour (up from $14.25) for employers with 100 or more employees and $13.50 per hour (up from $12.50) for employers with fewer than 100 employees, Saint Paul: As of July 1, 2022, $15.00 per hour (up from $12.50) for employers with more than 10,001 employees, $13.50 per hour (up from $12.50) for employers with between 101 and 10,000 employees, $12.00 per hour (up from $11.00) for employers with between 6 and 100 employees, and $10.75 per hour (up from $10.00) for employers with 5 or fewer employees. If you have questions on whether a certain type of work is restricted, or who is eligible for a homework certificate, or how to obtain a certificate, you may contact the local WHD office. 19. Please log in as a SHRM member before saving bookmarks. Please purchase a SHRM membership before saving bookmarks. For those who have access to the Internet, further information may also be obtained on WHDs Internet Home Page which can be located at the following address:www.dol.gov/agencies/whd. Pennsylvania Raises Exempt Salary Threshold The Pennsylvania Department of Labor and Industry published its final rule to substantially increase the salary cutoff for exempt executive,. The salary threshold to qualify for exemption is $958.30 per week under WMWA. What's the Overtime Threshold? Employers who willfully or repeatedly violate minimum wage or overtime pay requirements are subject to civil money penalties for each violation. 11. Overtime Non-exempt employees must be paid overtime for hours worked in excess of 40 in a single workweek (a workweek can be any seven consecutive 24-hour periods). In a regulatory agenda published on December 10, the Department of Labor announced its intention to review and update Fair Labor Standards Act regulations regarding the overtime threshold.. Find out more about the announcement and what it could mean for your organization in 2022. Nondiscretionary bonuses and incentive payments (including commissions) paid on an annual or more frequent basis may be used to satisfy up to 10 percent of the standard salary level. Meeting the salary threshold doesn't automatically make an employee exempt from overtime pay; the employee's job duties also must primarily involve executive, administrative or professional duties as defined by the regulations. Does the paid sick leave under WMWA apply to an employee whose primary duty is teaching i.e. The salary threshold required to exempt EAP employees from overtime protections under FLSA are different. Employers with 51 or More Employees: $958.30 per week. Arkansas. Due to an increase in the states minimum wage, the minimum salary required for the administrative, professional, and executive exemptions from overtime under state law will increase to $735.59 per week on January 1, 2022. In addition, there are other specialized rules which apply in higher education settings, as discussed in number 4 below. Special salary levels would apply to certain U.S. territories and an updated base rate would apply to employees in the motion-picture industry. With respect to an employee subject to the minimum wage provisions or both the minimum wage and overtime pay provisions, the following records must be kept: Records required for exempt employees differ from those for nonexempt workers. All overtime-eligible employees must fill out aTime and Attendance Record [.xlxs]in order to comply with FLSA standards. The following is a comprehensive list of the exempt status salary threshold by state. Employers are required to provide a reasonable amount of break time to express milk as frequently as needed by the nursing mother. SHRM Employment Law & Compliance Conference, Dont Forget to Review Duties Tests for Overtime Exemptions, Understanding Overtime Exemptions Under the FLSA. Visit Here. This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Only employees who are not exempt from the FLSAs overtime pay requirements are entitled to breaks to express milk. Special rules apply to State and local government employment involving fire protection and law enforcement activities, volunteer services, and compensatory time off instead of cash overtime pay. 111-148), amended Section 7 of the FLSA, to provide a break time requirement for nursing mothers. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal threshold. 3. The provisions include restrictions on hours of work for minors under 16 and lists of hazardous occupations orders for both farm and non-farm jobs declared by the Secretary of Labor to be too dangerous for minors to perform. For classified employees and those employees exempt from civil service the salary threshold discussed in question #1 should be applied in order to exempt the position. 16. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID");
Join/Renew Now and let SHRM help you work smarter. How can employers avoid salary compression when raising the minimum salary for exempt employees under the revised overtime regulations? RCW 49.46.010(3)(c). The California HR e-newsletter is a free monthly newsletter that provides the top California HR and employment law news, including updates on state and federal court decisions and analysis of state legislation and regulations. Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional, computer and outside sales employees. Under a special provision, youths 14 and 15 years old enrolled in an approved Work Experience and Career Exploration Program (WECEP) may be employed for up to 23 hours in school weeks and 3 hours on school days (including during school hours). Additionally, 5 states are increasing the minimum salary requirement for overtime exemption on January 1, 2022. The .gov means its official. 10. The FLSA overtime rule determines whether employees are eligibleor exemptfor overtime pay. WMWA exempts certain kinds of covered employees from its requirements, including bona fide Executive, Administrative, and Professional (EAP) workers. For academic employees, consult your assigned AAG about whether the new salary basis threshold applies. Such employment is permitted only under certificates issued by WHD. Agencies should be reviewing their current positions to ensure that they are properly classified. Workers who do not earn at least $35,568 a year ($684 a week) would have to be paid overtime, even if they're classified as a manager or professional. These changes moved the threshold to $684 per week ($35,568 annualized) and allowed for up to 10% of non-discretionary bonuses to satisfy threshold requirements. 2022 Governor's proposed supplemental budget, 2021 Governor's proposed supplemental budget, 2020 Governor's proposed supplemental budget, 2023-25 operating and transportation budget instructions, 2021-23 operating, transportation and capital budget instructions, Fiscal impact of ballot measures & proposed legislation, 2021 general election ballot fiscal information, State Administrative & Accounting Manual (SAAM), Contact Facilities Oversight and Planning staff, Facilities Portfolio Management Tool (FPMT), Bill Enrollment and Agency Request System (BEARS), Results through Performance Management System (RPM), Fair Labor Standards Act (FLSA) & Washington Minimum Wage Act (WMWA), Washington Management Service (WMS) coordinator roles and meetings, Furlough and layoff information for employers, Workforce diversity, equity and inclusion. Employers are also required to provide a place, other than a bathroom, that is shielded from view and free from intrusion from coworkers and the public, which may be used by an employee to express breast milk. If the employee works 50 hours, the regular rate is $9.60 ($480 divided by 50 hours). Under both federal and state law, teachers are exempt if their primary duty is teaching, tutoring, instructing or lecturing to impart knowledge and that person also performs these duties at an educational establishment. Updates would not be automatic and would continue to require notice-and-comment rulemaking. Certain commissioned employees of retail or service establishments; auto, truck, trailer, farm implement, boat, or aircraft sales-workers; or parts-clerks and mechanics servicing autos, trucks, or farm implements, who are employed by non-manufacturing establishments primarily engaged in selling these items to ultimate purchasers; Employees of railroads and air carriers, taxi drivers, certain employees of motor carriers, seamen on American vessels, and local delivery employees paid on approved trip rate plans; Announcers, news editors, and chief engineers of certain non-metropolitan broadcasting stations; Domestic service workers living in the employers residence; Employees of motion picture theaters; and. The salary threshold required to exempt EAP employees from overtime protections under FLSA are different. The following examples are based on a maximum 40-hour workweek applicable to most covered nonexempt employees. .usa-footer .grid-container {padding-left: 30px!important;} Direct any questions you may have to classandcomp@ofm.wa.gov and reach out to your assigned Assistant Attorney General. As noted above, the weekly standard salary level will continue to increase each year over the next eight years. .h1 {font-family:'Merriweather';font-weight:700;} When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. California. See WAC 296-128-533(1)(c). Piece rate - The regular rate of pay for an employee paid on a piecework basis is obtained by dividing the total weekly earnings by the total number of hours worked in that week. What is the Fair Labor Standards Act? And employers had the option of . 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. You have successfully saved this page as a bookmark. In no case may the regular rate be less than the minimum wage required by the FLSA. Otherwise they remain overtime exempt. A covered enterprise is the related activities performed through unified operation or common control by any person or persons for a common business purpose and . For hourly computer professionals, L&Is new salary threshold is $47.92 per hour. Agencies or higher education institutions should contact their assigned Labor and Personnel or Education Division AAG. The salary shall not be subject to deduction because of various in quantity or quality of the work performed, subject to exceptions in WAC 296-128-532(3). An exempt employee must earn a salary of at least 1.75 times the minimum wage, or $958.30 a week ($49,831.60/year) to maintain the exemption. The UCs will retain the higher FLSA salary threshold of $913 per week for staff positions, as implemented in December 2016. Also, work may not begin before 7 a.m., nor end after 7 p.m., except from June 1 through Labor Day, when evening hours are extended to 9 p.m. The reasonable cost or fair value of board, lodging, or other facilities customarily furnished by the employer for the employees benefit may be considered part of wages. Your session has expired. Note: In Colorado, an exempt employees salary generally must also be sufficient to satisfy the minimum wage for all hours worked in a workweek. These penalties may be increased for each violation that results in the death or serious injury of an employee who is a minor, and may be doubled if the violation was determined to be willful or repeated. 8. var temp_style = document.createElement('style');
The answer to this question is fact-specific and requires analysis of the positions primary duties under the administrative exemption of WMWA. Please log in as a SHRM member. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. As a result, the minimum salary required for the executive, administrative, and professional exemptions from overtime under state law increases to $1,014.30 per week on January 1, 2022. Special provisions apply to workers in American Samoa and the Commonwealth of the Northern Mariana Islands. Minors 14 and 15 years old may work outside school hours in various nonmanufacturing, nonmining, nonhazardous jobs under the following conditions: no more than 3 hours on a school day, 18 hours in a school week, 8 hours on a non-school day, or 40 hours in a non-school week. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. $("span.current-site").html("SHRM MENA ");
Employees who lack a high school diploma, or who have not attained the educational level of the 8th grade, can be required to spend up to 10 hours in a workweek engaged in remedial reading or training in other basic skills without receiving time and one-half overtime pay for these hours. The proposal is expected to be issued in the near future. This salary threshold would not apply to individuals whose primary duty is teaching, and there are other specialized rules that apply in the higher education settings. #block-googletagmanagerheader .field { padding-bottom:0 !important; } Civil money penalties may be assessed for child labor violations and for repeat and/or willful violations of FLSA minimum wage or overtime requirements. Hourly rate (regular pay rate for an employee paid by the hour) - If more than 40 hours are worked, at least one and one-half times the regular rate for each hour over 40 is due. The Department may seek a U.S. District Court injunction to restrain violations of the law, including the unlawful withholding of proper minimum wage and overtime pay, failure to keep proper records, and retaliation against employees who file complaints and/or cooperate with the Department. In order for an exemption to apply, an employee's specific job duties and salary must meet all the requirements of the Department of Labor's regulations. [CDATA[/* >