These laws require the university to provide overtime pay to employees for any work hours exceeding 40 hours in a given workweek unless that employee is exempt from these laws. Seattle's minimum wage for large employers will increase from $17 . 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. 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. Justice Department Announces Application Form for Marijuana Pardon Certificates, HERE IT IS: The Czars HUGE Breakdown of the FCC NPRM is NOW AVAILABLE to Everyone. The Washington State minimum wage will see a steep increase in 2023, due to the 8.6% rate of inflation. Recent CFPB Actions Focus on Protecting Military Families, New and Updated Guidance on the Scope of the UK Plastic Packaging Tax. Small employers (with 1-50 employees) will have a more gradual phase-in schedule to give them additional time to comply with the new rules compared to large companies (51 or more employees). For the computer professional employee exemption, the employee may be paid by salary (as long as it is at least $684 per week) or by the hour (as long as it is at least $27.63 per hour). Washington House . 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. Keep in mind that reclassification means more than just . Attorney Advertising Notice: Prior results do not guarantee a similar outcome. 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 list includes some special districts in states but does not include all of said districts. Employees whose primary duty is teaching, instructing, or lecturing to impart knowledge are not eligible for overtime and this change does not impact them. However, if paid by the hour, the minimum hourly rate for 2022 for computer professionals is $50.72 per hour. 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. This is true in certain other states as well, some of which will have a new minimum wage in 2023. 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). . With the state salary thresholds for exempt employees now a multiplier of the state minimum wage, one of the thresholds multipliers will rise on Jan. 1, 2023. The Temporary Employment and Student Employment Classification/Compensation Plansareavailable on theHRS website. Y@FLc)uy c? 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). Seattle minimum wage: The City of Seattle is increasing its minimum wage requirement to $18.69 per hour for most employers. 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). 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. 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. On January 1, 2021, Washington's minimum wage will increase from $13.50 to $13.69. $58,240 (employers with 25 or fewer employees), $62,400 (employers with 26 or more employees), $64,480 (All employers regardless of size), $58,511 (NYC, Nassau, Suffolk, Westchester), $55,341 (12/31/2022 for All other NY Workers), ~$50,740 (1.75 x Minimum Wage, All Employers 2022), ~$57,293.60 (1.75 x Minimum Wage, Employers with 1-50 Employees). 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. 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. Washington's overtime employment rules have changed. Thank you for suggesting a question for our next Q&A post! www.grsm.com is using a security service for protection against online attacks. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. Beginning January 1, 2023, these employees must earn at least: $53.80 per hour (for all hours worked); or A monthly salary of $9,338.78; and An annual salary of $112,065.20 Colorado: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. The computer professionals exemption was added in 1997, but these are the first major changes to the states rules since 1976. Who are these workers?A combination of a predetermined fixed salary, the salary meeting a minimum threshold, and specific job duties determines whether a worker meets the definition of an executive, administrative, or professional worker, outside salesperson or computer professional contained in state rules. 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). 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. 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. The annualized L&I threshold for 2022 is $52,752. Note: The minimum salary threshold does not apply bona fide teachers exempted under the Professional Exemption. State DOES NOT count nondiscretionary bonuses, incentive payments and commissions payments toward salary threshold. 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. The L&I salary threshold will change annually through 2028. This rate is subject to mandatory annual adjustments which are usually announced in October or early November. BREAKING DOWN THE PRIVACY ACT REVIEW REPORT #3: Removal of The Small White House Releases National Cybersecurity Strategy, Illinois High Court Rules Per-Scan Damages Can Be Awarded Under BIPA, Grassley-Wyden Bill Aims to Fix Broken Tax Whistleblower Law, Lessons Learned From 2022s Trade Secret Verdicts, Mass. Employees aged 14 to 15 years old must earn at least $13.38 per hour in 2023. 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. Six states increased the minimum salary requirement for overtime exemption on January 1, 2023. Your assigned HRS representative will be in contact with you with additional information. If you have questions about which rates apply to your employees or whether they are exempt, contact your Vigilant Law Group employment attorney. The state of Washington has announced increases in the minimum wage rate and the exempt salary thresholds for employees, effective January 1, 2023. State Developments, Wage and Hour, Washington. Minimum Wage (2022) In keeping with the gradual increase in the State's minimum wage levels, the new tiered rates across the State, effective December 31, 2021, are listed below. DC Circuit to Disputes Ancillary to Patent Matters: You Cant Sit Consumer Fraud PFAS Cases Continue To Rise. Please enable cookies on your browser and try again. Use tab to navigate through the menu items. The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. This means an employee exempt from overtime pay must earn at least $1,101.80 a week or $57,293.60 a year. The service requires full JavaScript support in order to view this website. 2023 salary thresholds set for overtime exempt employees, Chapter 296-128 of the Washington Administrative Code. The state anticipates that by 2028, nearly 260,000 positions that were previously exempt under the Minimum Wage Act will be impacted. Employers have several options to comply with the new federal and state salary thresholds: Reclassify exempt positions as hourly, non-exempt positions. For a helpful chart, see L&Is salary implementation threshold schedule. 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 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. Washington's minimum wage is $14.49 per hour, up from $13.69 per hour in 2021. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. Under certain state laws the following statements may be required on this website and we have included them in order to be in full compliance with these rules. 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). The U.S. Department of Labor in September 2019 updated the federal overtime rules regarding executive, administrative, and professional workers. Many states have their own salary and duties tests for determining whether an employee is exempt from overtime under state rules. Starting Monday, December 26, 2022, they will need to track the hours that they work following the established time tracking procedure in their department. Ms. Bannons employment law practice includes providing employers proactive advice and practical solutions to current or potential employee problems to manage risk related to discipline Ms. Fletcher represents employers in all aspects of employment claims and litigation in federal and state courts, at arbitration, mediation, and before administrative agencies, including matters involving wrongful termination, discrimination, sexual harassment, disability and religious accommodation, retaliation, wage and hour, and breach of contract claims. Seattle and SeaTac require a higher minimum wage rate for employees working within city limits (see below). Free Speech Shines Bright, Illuminates Patent Owners Right to Allege California Supreme Court to Address Rounding of Employee Time. 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. As a result of the change in the states minimum wage, the minimum salary required for these exemptions under state law increased to $868 per week (twice the minimum wage for a 40-hour week) on January 1, 2023. The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. The public submitted almost 2,300 comments by email, fax, and mail, and 182 people testified during public hearings during this process. H-2B Cap for Fiscal Year 2023 Is Met: A Supplemental Cap Increase As COVID-19 Emergency Waivers End, DEA Proposes to Expand Tele- How Employers Need to Prepare for the End of the COVID Public Health USPTO To Transition To Electronically Granted Patents In April 2023, Reductions in Force: Some High-Level Issues To Consider, CMS Streamlines Stark Law Self-Referral Disclosure Protocol (SRDP), The Alice Eligibility Two-Step Dance Continues, FTC is Talking Trash and Zeroing-in on Recyclable Claims, FTC Hosts Forum on Proposed Rule to Ban Noncompete Clauses. Watch future newsletters for an update on the increased rate for 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. Cities are allowed to set higher minimum wages. This same threshold applies to part-time employees; it is not pro-rated for employees who are less than full-time. For example: relocation pay. The service requires full cookie support in order to view this website. The hearings were held in July and August 2019 in Tumwater, Seattle, Bellingham, Ellensburg, Kennewick, Spokane and Vancouver. Small employers with 1-50 employees must pay exempt employees a salary of at least $1,101.80 per week ($57,293.60 per year). See our Legal Guide, Noncompetition Agreements, for guidance on additional requirements in Washington. 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 governor-appointed Ombudsman would be an advocate for injured workers by accepting, investigating, and attempting to resolve complaints related to workers compensation. We cannot become your lawyers or represent you in any way unless (1) we know that doing so would not create a conflict of interest with any of the clients we represent, and (2) satisfactory arrangements have been made with us for representation. Mar 02, 2023 L&I determines the amount based upon a multiplier of the Washington state minimum wage and inflation, causing the final amount to potentially differ from published projected amounts. 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. In addition to the change in the minimum salary level, the new rules update the job duties tests. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor. As a result, professional staff, contract covered staff, and classified non-union overtime positions that do not meet . With the state salary thresholds for exempt employees now a multiplier of the state minimum wage, one of the thresholds multipliers will rise on Jan. 1, 2023. $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. Critically, the nonexempt classification is not a reflection of the importance of a position. Noncompete Agreements: Washington law prohibits noncompete agreements with employees who earn less than the states annual threshold. The city hasnt yet announced the 2023 rate for those employees. Accepting Cryptocurrency and Digital Asset Donations: What Charities Need to Know. Its Here The New National Cybersecurity Strategy. Effective January 1, 2023, employees must earn $65,478.40 annually ($5,456.55 monthly) to be exempt from overtime, regardless of duties and responsibilities. Sign up to receive email updateson the overtime employment rule changes and other wage matters. Her practice extends to private sector clients. 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. Ogletree, Deakins, Nash, Smoak & Stewart, P.C. 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.
