Here are some key things to know for both federal exemptions and state exemptions, along with some state-specific changes for 2023. 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). Washington Visit Here. 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.. 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). This change will impact student and non-student hourly employees, state work study rates and some civil service employees. 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. Locking Tik Tok? 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. Part 1 training plans. Large employers (fifty-one or more employees) must pay exempt employees at least two times the minimum wage to meet the minimum salary requirements. EPA Releases Proposed Approach for Considering Cumulative Risks under Revised Colorado Privacy Act Rules Adopted for Review by Colorado AG. NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. 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. Preparing for the 2023 Washington Salary Threshold Increase 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. State salary threshold for overtime exemption and minimum wage update 2023 Exempt Status Salary Threshold by City and State . This information is not legal advice. 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. 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 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. . Please enable JavaScript on your browser and try again. US Executive Branch Update March 2, 2023. State DOES NOT count nondiscretionary bonuses, incentive payments and commissions payments toward salary threshold. Our faculty colleagues (and some staff members) whose primary duty is teaching, coaching, instructing, or lecturing are fully exempt from these laws regardless of their salary amount. 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). Are Your Pay Rates Compliant for 2020? - SHRM Washington Sets New Minimum Wage and Overtime Exempt Threshold for 2023 Changes to these rules mean some employers might have to provide overtime, minimum wage, and paid sick leave to some employees who were previously treated as exempt. These workers are typically "white collar" workers who often have more economic security and relative bargaining power than lower-wage workers. Starting Monday, December 26, 2022, they will need to track the hours that they work following the established time tracking procedure in their department. In other cases, employers may need to increase salaries for exempt employees. 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. 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. Important information for employers is also available via the firms webinar and podcast programs. Washington State Announces 2023 Minimum Wage Rate And Salary Thresholds Each September, L&I uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (referred to as CPI-W) from the U.S. Bureau of Labor Statistics to determine the minimum wage for the following year. L&I has created an online overtime resource center to assist employers in understanding these salary requirements, including charts, fact sheets, workshops, and webinars. Federal updated its highly compensated employee salary threshold to $107,432/yr. 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved. 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. PPTX Washington State Overtime exemption changes - 2021 Suggest a topic and we might discuss it in a future blog post. If you would ike to contact us via email please click here. Expanding Regulatory Reach over Intermediaries That May Constitute How to Value Digital Assets for Donation to Charity. Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. 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. 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. 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. Washington House . The Temporary Employment and Student Employment Classification/Compensation Plansareavailable on theHRS website. 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. Watch future newsletters for an update on the increased rate for 2023. $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). 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. The annually increasing salary thresholds specifically apply to the many university positions within the Executive, Administrative, and Professional exemptions. How you can stay informedCheck out the overtime rules fact sheet. The list includes some special districts in states but does not include all of said districts. Washington state minimum wage to increase 80 cents Saturday 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. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. The list does not include the city/county thresholds for California. In many cases, the state criteria are harder to meet than the federal criteria. Statement in compliance with Texas Rules of Professional Conduct. White House Reviewing Proposed Regulations on Reinstated Superfund You Dont Need a Machine to Predict What the FTC Might Do About Is It Compensable? 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. 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. More information on the process and the civil service salary schedule will be available shortly. See new exemption . 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). Federal law allows us to use to calculate salary threshold. 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. This is a 5.83 percent increase from the current 2021 minimum wage of $13.69 per hour. The content and links on www.NatLawReview.comare intended for general information purposes only. Before classifying and treating any employee as exempt from overtime, employers should confirm that the employee satisfies all applicable tests for overtime exemption under federal and state laws. 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. Under state law, 14 and 15-year-olds can be paid 85% which will be $13.38 in 2023. Seattles minimum wage rates apply to all nonexempt employees for all hours they work within the city limits. The U.S. Department of Labor in September 2019 updated the federal overtime rules regarding executive, administrative, and professional workers. The state anticipates that by 2028, nearly 260,000 positions that were previously exempt under the Minimum Wage Act will be impacted. www.grsm.com is using a security service for protection against online attacks. Any legal analysis, legislative updates or other content and links should not be construed as legal or professional advice or a substitute for such advice. 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. University of Washington School of Law, J.D. Effective January 1, 2023, civil service employees at these impacted salary ranges and step will be adjusted to minimum wage. For more information on overtime exemptions in Washington, see our Legal Guide, State Laws on the White Collar Exemption from Overtime. 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). 2022 Washington Minimum Wage and Salary Thresholds for Overtime Exempt Washington State Overtime Salary Thresholds to Go Up in 2020 (and Up Departments must monitor employee work location to ensure the pay rate is correct and make necessary adjustments. HRS will assist colleges/areas in evaluating the impact of these changes. 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. Washington Sets New Minimum Wage, Overtime Exempt Threshold - LinkedIn For employees working in Seattle and the City of SeaTac, the local minimum wage rate applies as long as it remains higher than the state minimum. When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. National Law Review, Volume XII, Number 277, Public Services, Infrastructure, Transportation. For example: relocation pay. Washington State Announces 2023 Minimum Wage Rate and Salary Thresholds The city hasnt yet announced the 2023 rate for those employees. FLSA and WMWA overtime eligibility and exemption - Compensation Exempt Employees: 2023 Minimum Salary Requirements DC Circuit to Disputes Ancillary to Patent Matters: You Cant Sit Consumer Fraud PFAS Cases Continue To Rise. Especially in changing times, thank you so much for your hard work and all you do for Seattle University and our campus community.
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