1/1/2023 . STATE does not have a highly compensated employee exemption. Heres what we know about these rate increases: Statewide minimum wage: The statewide minimum wage rate for nonexempt (overtime-eligible) workers will rise to $15.74 per hour (up from $14.49), effective January 1, 2023. In addition, work volume is dependent on operational needs and work must be performed to meet those needs. 2023-1 providing guidance on wage and hour topics related to employees who, Accident prevention is a journey, not a destination. Following a nationwide trend (including California, Delaware, Illinois, Pennsylvania, and other states), Wisconsin Governor Tony Evers announced he will be issuing a safer-at-home order in response to the COVID-19 outbreak. 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). We need your faithful generosity to exceed $28,600,000 in . Chris Edison. Large employers (fifty-one or more employees) must pay exempt employees at least two times the minimum wage to meet the minimum salary requirements. For information about any potential impacts on academic personnel, please email the Office of Academic Personnel at acadpers@uw.edu or call 206-221-UWAP (8927). 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. 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The changes update minimum salary level and job dutiesUnder the approved changes, the minimum pay a salaried worker must receive to be considered exempt would increase incrementally to 2.5 times the state minimum wage by 2028. On September 30, 2022 the Washington State Department of Labor and Industries announced the new state minimum wage effective January 1, 2023: $15.74 per hour. To be considered "exempt," these employees must generally satisfy three tests: Note: There are also exemptions for outside sales and computer professional 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). 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 State Developments, Wage and Hour, Washington. Y@FLc)uy c? HERE IT IS: The Czars HUGE Breakdown of the FCC NPRM is NOW Telehealth Update: DEA Issues Long-Awaited Proposed Rule on CFPB Provides Guidance on Auto Finance Data Pilot, Two Maui Men Sentenced for Racially Motivated Attack on White Man, US Executive Branch Update March 3, 2023, EPA Holds Third and Final TSCA Engineering Initiative Webinar. 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. The salary rates may vary depending on the city/county where an employee resides/works in California. 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. 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. 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. A bill (S1982) introduced in the Senate on June 16 would create a Workers Compensation Ombudsman for Injured Workers. 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). The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. Exempt computer professionals: The minimum salary rate for exempt computer professionals who are paid hourly will also increase as of January 1, 2023. Breaking the Link New Developments on U.S. All employers who choose to pay their exempt computer professionals an hourly rate rather than the salaried exempt rate described above must pay them at least 3.5 times the state minimum wage, which works out to $55.09 per hour in 2023. Managers will need to assess staffing patterns and design the work to balance resources and overtime. Can Nonprecedential Decisions Be Relied Upon? 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. Beginning January 1, 2023, these employees must earn at least: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. 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 . The state of Washington has announced increases in the minimum wage rate and the exempt salary thresholds for employees, effective January 1, 2023. 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. This website presents general information in nontechnical language. For a helpful chart, see L&Is salary implementation threshold schedule. For additional information, please see the HR website: FLSA and WMWA overtime eligibility and exemption. This change will impact student and non-student hourly employees, state work study rates and some civil service employees. The list includes some special districts in states but does not include all of said districts. In order to be exempt from overtime, employees must also meet one of the duties tests. 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C. Using the 2023 minimum wage starting January 1, 2023, L&I calculated . Mandatory Arbitration Agreements Remain Valid in California, Antitrust Practitioners Expect Activity With Climate Issues. 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). 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. To qualify for the administrative, professional and executive exemptions in California, employees must meet certain salary and duties tests and must be paid at least twice the state minimum hourly wage based on a 40-hour week. 2023 Exempt Status Salary Threshold by City and State. 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 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. All our faculty and staff, regardless of whether they are exempt or nonexempt, perform important work in support of our mission. 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. The annualized L&I threshold for 2022 is $52,752. The Washington State Department of Labor & Industries (L&I) determines minimum thresholds using a multiplier of the state minimum wage. 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. The change in the state minimum wage also increases the new state minimum salary thresholds for Overtime Exempt Employees. Public input during the rulemaking processL&I updated the overtime rules through a rulemaking process that began in March 2018. Free Speech Shines Bright, Illuminates Patent Owners Right to Allege California Supreme Court to Address Rounding of Employee Time. How you can stay informedCheck out the overtime rules fact sheet. Litigation Setback for Employers Under Illinois Biometric Information Senate Committee Holds Hearing on Future of Low Carbon Transportation North Carolina Senate Passes Compassionate Care Act at Exactly 4:20 States and Feds Signal Big Changes to Telehealth Prescribing. The state of Washington minimum wage will increase from to$14.49 to $15.74 per hour on January 1, 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 announced on September 30, 2022. State DOES NOT count nondiscretionary bonuses, incentive payments and commissions payments toward salary threshold. 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. 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. Y321N-!s%/
6aG3TbAx1}Net3BIYr[@KdqZ?w*. See new exemption . L&I has created an online overtime resource center to assist employers in understanding these salary requirements, including charts, fact sheets, workshops, and webinars. 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. House Energy & Commerce Subcommittee Holds Hearing on U.S. Hunton Andrews Kurths Privacy and Cybersecurity. Europe: Is Eltif 2.0 a More Viable Structure for Long-Term Investment in the EU? The state anticipates that by 2028, nearly 260,000 positions that were previously exempt under the Minimum Wage Act will be impacted. For large businesses (51 or more non-exempt WA . 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. Federal law allows us to use to calculate salary threshold. Ms. Fletcher advises employers on personnel You are responsible for reading, understanding and agreeing to the National Law Review's (NLRs) and the National Law Forum LLC's Terms of Use and Privacy Policy before using the National Law Review website. NLRB Places New Limitations on Confidentiality and Non-Disparagement Settlement Will Benefit Many Aging-Out Children in the Green Card SEC Commissioner Discusses Reform to Regulation D, Massachusetts AG Settles Enforcement Action Against Auto Lender. Because the salary. Noncompete Agreements: Washington law prohibits noncompete agreements with employees who earn less than the state's annual threshold. 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. Waters of the United States and Winston Churchill. BY 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. Two local jurisdictions have higher minimum wages and different labor rules than Washington State. Employers seeking to classify employees as exempt from overtime should ensure employees meet both federal and state exemption criteria. Many states have their own salary and duties tests for determining whether an employee is exempt from overtime under state rules. You will be redirected once the validation is complete. This approach follows the principle of law that in the event of a conflict between state and federal law, the law more protective of the employee will apply. BY Mar 02, 2023 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. The Washington State Labor and Industries (L&I) announced the minimum salary an employee must earn to be exempt from overtime. The National Law Review is a free to use, no-log in database of legal and business articles. Pacific Lutheran University, B.S. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal threshold. The salary threshold under federal law is only $684 per week, so employers in Washington must pay at the higher state level. In Washington, employees must satisfy certain salary and duties tests to be classified as exempt from overtime under state law. Ms. Bannons practice has emphasized the defense of municipal and other governmental clients in state and federal court litigation, in addition to providing routine employment law advice and counsel to local agencies Human Resources professionals. 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. HRS will assist colleges/areas in evaluating the impact of these changes. Legislative Package Includes Bills to Advance Biofuels Research, PTO to Begin Issuing Electronic Patent Grants, OSHA to Expand the Use of Instance-by-Instance Penalties. As you know, SU complies with federal, state, and local laws relating to employee wages and hours, including the federal Fair Labor Standards Act (FLSA) and the Washington State Minimum Wage Act (MWA). https://www.lni.wa.gov/news-events/article/22-026 The minimum hourly wage for employees sixteen and older will increase to $15.74 per hour. 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. This means, for example, that a 50% (half-time) employee whose annualized salary is $120,000 would be overtime eligible because their actual, half-time salary would be $60,000, which is less than the new $65,484 threshold. Employers have several options to comply with the new federal and state salary thresholds: Reclassify exempt positions as hourly, non-exempt positions. Licenses for Exports to Are You Ready for the UPC? California Law May Limit Hospitals Ability to Adopt The Joint Ankura CTIX FLASH Update - February 28, 2023, Ankura Cyber Threat Investigations and Expert Services. 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. Unless otherwise noted, attorneys are not certified by the Texas Board of Legal Specialization, nor can NLR attest to the accuracy of any notation of Legal Specialization or other Professional Credentials. For more information on overtime exemptions in Washington, see our Legal Guide, State Laws on the White Collar Exemption from Overtime. Noncompete Agreements: Washington law prohibits noncompete agreements with employees who earn less than the states annual threshold. No attorney-client or confidential relationship is formed by the transmission of information between you and the National Law Review website or any of the law firms, attorneys or other professionals or organizations who include content on the National Law Review website. An explanation of this requirement and a sample notice form can be found on Seattles wage theft ordinance webpage. The Washington State minimum wage increases Saturday, reflecting inflation over the past year. This rate is subject to mandatory annual adjustments which are usually announced in October or early November. 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. Confidentiality and Non-Disparagement Agreements with Non-Supervisory USCIS Confirms It Will Accept Employment-Based I-485 Applications New Jersey Enacts Bill of Rights for Temporary Workers, DOJ Implements Nationwide Voluntary Self-Disclosure Program. 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. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor. Note: In Colorado, an exempt employees salary generally must also be sufficient to satisfy the minimum wage for all hours worked in a workweek. The list does not include the city/county thresholds for California. Employees whose primary duty is teaching, instructing, or lecturing to impart knowledge are not eligible for overtime and this change does not impact them. 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. The rate changes in 2024 as employers with 1-50 employees increase at least 2X the minimum wage. 2023 salary thresholds set for overtime exempt employees, Chapter 296-128 of the Washington Administrative Code. Employees aged 14 to 15 years old must earn at least $13.38 per hour in 2023. Part 1 training plans. 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. 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. Check outtheovertime rulemaking documents. 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). of Business Administration. The content and links on www.NatLawReview.comare intended for general information purposes only. The state's minimum wage increased on January 1, 2023. These workers are typically "white collar" workers who often have more economic security and relative bargaining power than lower-wage workers. Its Here The New National Cybersecurity Strategy. 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved. If you will be adjusting wages in light of the minimum wage increases, make sure you notify any affected workers. Mar 02, 2023 AG Clamps Down on Local Solar and Battery Storage Moratoria. "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. Washington's minimum wage is $14.49 per hour, up from $13.69 per hour in 2021. 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]. Before applying this information to a specific management decision, consult legal counsel. NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. 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.