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. The hearings were held in July and August 2019 in Tumwater, Seattle, Bellingham, Ellensburg, Kennewick, Spokane and Vancouver. Because the salary. The state's minimum wage increased on January 1, 2023. This means an employee exempt from overtime pay must earn at least $1,101.80 a week or $57,293.60 a year. The salary threshold under federal law is only $684 per week, so employers in Washington must pay at the higher state level. Washington's overtime employment rules have changed. Effective January 1, 2023 under the WMWA, the minimum actual gross salary a position can be paid and still remain overtime exempt increased from $1,014.30 per week to $1,259.20 per week ($65,484 per year or $5,457 per month). 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. Large employers (fifty-one or more employees) must pay exempt employees at least two times the minimum wage to meet the minimum salary requirements. This information is not legal advice. Watch future newsletters for an update on the increased rate for 2023. 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. This change will impact student and non-student hourly employees, state work study rates and some civil service employees. The new hourly minimum, which applies to employees 16 years and older, will increase 80 cents per. All our faculty and staff, regardless of whether they are exempt or nonexempt, perform important work in support of our mission. 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. Pacific Lutheran University, B.S. 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. 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 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. House Energy & Commerce Subcommittee Holds Hearing on U.S. Hunton Andrews Kurths Privacy and Cybersecurity. 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. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. Salary threshold implementation schedule Salary thresholds for overtime exempt workers are a multiplier of state minimum wage for a 40-hour workweek 2023 Salary thresholds When the rule takes effect July 1, 2020 Jan. 1, 2021 Jan. 1, 2022 Jan. 1, 2023 Jan. 1, 2024 Jan. 1, 2025 Jan. 1, 2026 Jan. 1, 2027 Jan. 1, 2028 For small employers with 1-50 . EXPOSED: Does a New NCLC Ex Parte Filing Expose Their True Agenda to Little Weight Given to Conclusory Expert Declaration That Repeats IPR Department of Homeland Security Provides Information Related to EB-5 PTAB: Vidal Refocuses Guidance On Fintiv Factors And Discretionary Aluminum Is Now A Hot Topic In Supply Chain And Trade. 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. 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. Rep. Mark Takano, D-Calif., led the questioning, noting that he sent a letter to encourage the DOL to adopt a salary threshold that by 2023 would be around $85,000 annually. 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). Noncompete Agreements: Washington law prohibits noncompete agreements with employees who earn less than the states annual threshold. Federal updated its highly compensated employee salary threshold to $107,432/yr. 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. In addition, many of our staff colleagues perform duties that meet the laws exemptions for Executive, Administrative, or Professional positions. 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. The state anticipates that by 2028, nearly 260,000 positions that were previously exempt under the Minimum Wage Act will be impacted. For the outside sales employee exemption, there is no minimum salary requirement. Washington employers should begin following the new Washington rules because the state threshold will become more favorable to employees at $821.40 a week (1.5x the state minimum wage) for small businesses and approximately $958.30 per week (1.75x the state . 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. Exempt computer professionals may be paid based on either the exempt salary threshold ($52,743.60 annually for 2022) or by the hour. The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal threshold. Federal law establishes a minimum salary of $684 per week for the professional exemption. Please contact your HRS Service Team if you have any questions. For large businesses (51 or more non-exempt WA . 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. Note: The minimum salary threshold does not apply bona fide teachers exempted under the Professional Exemption. Expanding Regulatory Reach over Intermediaries That May Constitute How to Value Digital Assets for Donation to Charity. Please enable JavaScript on your browser and try again. 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. Large employers (fifty-one or more employees) must pay exempt employees at least two times the minimum wage to meet the minimum salary requirements. 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). Mr. Pankratz has experience successfully representing employers in executive termination, non-compete and unfair competition disputes. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor. Statement in compliance with Texas Rules of Professional Conduct. 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. As a result, the minimum salary required for the executive and administrative exemptions in these upstate areas increased to $1,065 per week on December 31, 2022. 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. The National Law Review - National Law Forum LLC 3 Grant Square #141 Hinsdale, IL 60521 Telephone (708) 357-3317 ortollfree(877)357-3317. Washington Visit Here. 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). 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. 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. Employers have several options to comply with the new federal and state salary thresholds: Reclassify exempt positions as hourly, non-exempt positions. Employees aged 14 to 15 years old must earn at least $13.38 per hour in 2023. Seattle minimum wage: The City of Seattle is increasing its minimum wage requirement to $18.69 per hour for most employers. 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. 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. She has successfully defended cases before the United States Court of Appeals for the Ninth Circuit and the Washington State Court of Appeals. The effective date for the changes was July 1, 2020. For additional information, you can contact L&I's Employment Standards program atEAPrules@Lni.wa.gov or 1-866-219-7321. 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. Mar 02, 2023 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. For example: relocation pay. L&I has created an online overtime resource center to assist employers in understanding these salary requirements, including charts, fact sheets, workshops, and webinars. So You're Green Prove It or Be Prosecuted: ACCC Sweep Finds 57 California Court of Appeal Addresses When Violations are Willful or Whats new in Belgium on the employment front? If you live in a county with a special exempt threshold and do not see it listed, visit your district Department of Labor website to obtain accurate information. . This saying is often heard from Vigilants own Safety Manager, Manish Gooneratne. 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. A new 2023 version of the required workplace poster is available online. More information on the process and the civil service salary schedule will be available shortly. The overtime threshold . Y321N-!s%/
6aG3TbAx1}Net3BIYr[@KdqZ?w*. January 1, 2023 Employer with fifty or fewer employees - an amount not less than 1.75 times the state minimum wage prescribed in WA Statute 49.46.020 for a forty-hour workweek. 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. 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). 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. Mandatory Arbitration Agreements Remain Valid in California, Antitrust Practitioners Expect Activity With Climate Issues. In order to be exempt from overtime, employees must also meet one of the duties tests. 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]. New salary threshold implementation schedule, Threshold phase-in schedule for computer professionals paid hourly. Please understand that merely contacting us does not create an attorney-client relationship. Other factors will have an impactChanges in Washingtons minimum wage are now calculated each year. For a helpful chart, see L&Is salary implementation threshold schedule. Departments that have employees physically working in these cities must ensure they are paid in accordance with the city minimum wage ordinance. Some states also bumped their exempt . On January 1, 2021, Washington's minimum wage will increase from $13.50 to $13.69. 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. 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). 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. The Washington State Department of Labor & Industries (L&I) determines minimum thresholds using a multiplier of the state minimum wage. 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. Keep in mind that reclassification means more than just . 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. Recent CFPB Actions Focus on Protecting Military Families, New and Updated Guidance on the Scope of the UK Plastic Packaging Tax. 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). Human Resources will provide training and share best practices to guide supervisors through the impact of these changes. "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. 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. Cities are allowed to set higher minimum wages. Tips: The minimum wage rates in both Seattle and SeaTac continue to be higher than the statewide rate in Washington. Using the 2023 minimum wage starting January 1, 2023, L&I calculated . 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. 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C. The governor-appointed Ombudsman would be an advocate for injured workers by accepting, investigating, and attempting to resolve complaints related to workers compensation. University of Washington School of Law, J.D. The content and links on www.NatLawReview.comare intended for general information purposes only. Information regarding minimum wage can be found on theHRS website. Their current minimum wage is $17.54 per hour. Employees aged 14 to 15 years must earn at least $13.38 per hour. 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. The cities of Seattle and SeaTac also have higher minimum wage requirements that are increasing in 2023. This rate is subject to mandatory annual adjustments which are usually announced in October or early November. 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. These increases impact several state wage requirements that youll want to be aware of if you have employees in Washington. This process is automatic. Ogletree, Deakins, Nash, Smoak & Stewart, P.C. Our new tool provides background on the upcoming changes in the overtime rules, and also includes a tool that can help determine if an employee likely qualifies as exempt or not. For additional information, please see the HR website: FLSA and WMWA overtime eligibility and exemption. The service requires full JavaScript support in order to view this website. 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. 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. You can read theadopted rule language in Chapter 296-128 of the Washington Administrative Code. v5lJUmb"DbmR`U(vlf$2Y0@`5D#NW'3uUjJmLpgLF1MaLp!GHa67!?BW0CpbzqS&co6FQd+nV3XJ"cr BFND
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"9I\ 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. To be considered "exempt," these employees must generally satisfy three tests: Note: There are also exemptions for outside sales and computer professional employees. Your assigned HRS representative will be in contact with you with additional information. BY Michigan PFAS Challenge Arguments Briefed For The Court. The Washington State Labor and Industries (L&I) announced the minimum salary an employee must earn to be exempt from overtime. The federal Fair Labor Standards Act (FLSA) requires that employers pay most employees at least the federal minimum wage for each hour worked as well as overtime pay for all hours worked in excess of 40 in a workweek. Mar 02, 2023 How you can stay informedCheck out the overtime rules fact sheet. Governor Evers stated he would issue the order on Tuesday, March 24, 2020. Seattle and SeaTac require a higher minimum wage rate for employees working within city limits (see below). Six states increased the minimum salary requirement for overtime exemption on January 1, 2023. Our employment attorneys and workplace safety experts will take a look at your question and possibly select it for our next post. 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. 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. On December 31, 2022, the minimum wage increased in areas other than New York City and Nassau, Suffolk, and Westchester Counties. If you have questions about which rates apply to your employees or whether they are exempt, contact your Vigilant Law Group employment attorney. 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. However, if paid by the hour, the minimum hourly rate for 2022 for computer professionals is $50.72 per hour. Seattle and the City of SeaTac have minimum wage rates higher than the state minimum. Employers may want to consult legal counsel about how this rule may impact them. The salary rates may vary depending on the city/county where an employee resides/works in California. 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. Beginning January 1, 2023, these employees must earn at least: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. The National Law Review is a free to use, no-log in database of legal and business articles. 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). 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. $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. Check outtheovertime rulemaking documents. 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. Learn how Vigilant membership can help with your complex employment situations. NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. This is a 5.83 percent increase from the current 2021 minimum wage of $13.69 per hour. Especially in changing times, thank you so much for your hard work and all you do for Seattle University and our campus community. The 2023 threshold of $65,484 will be approximately 24.1% higher than the 2022 threshold. The National Law Review is not a law firm nor is www.NatLawReview.com intended to be a referral service for attorneys and/or other professionals. BY This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. Public input during the rulemaking processL&I updated the overtime rules through a rulemaking process that began in March 2018. 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. 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 Future of Stablecoins, Crypto Staking and Custody of Digital White House Climate and Environmental Justice Screening Tool. California Law May Limit Hospitals Ability to Adopt The Joint Ankura CTIX FLASH Update - February 28, 2023, Ankura Cyber Threat Investigations and Expert Services. Updated: Dec 13, 2022. . Federal law allows us to use to calculate salary threshold. Note: There is also a professional exemption under state law. Due to the monthly base pay model at the UW requiring a whole dollar amount, the UW's thresholds are slightly higher than the state's thresholds as shown in the table below: Attorney Advertising Notice: Prior results do not guarantee a similar outcome. For 2022, the wage for 14 and 15 year olds will be $12.32 per hour. 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 3,000 times the state minimum wage divided by 52. See L&Is Administrative Policy ES.A.9.6 (Exemption from Minimum Wage Act Requirements for Computer Professional Employees). 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. Important information for employers is also available via the firms webinar and podcast programs. 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. DC Circuit to Disputes Ancillary to Patent Matters: You Cant Sit Consumer Fraud PFAS Cases Continue To Rise. AG Clamps Down on Local Solar and Battery Storage Moratoria. 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. If other salary changes are needed, departments should process those actions in accordance withuniversity policies. Employees aged 14 to 15 years old must earn at least $13.38 per hour in 2023. g If you would ike to contact us via email please click here. 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. SeaTac minimum wage: The City of SeaTac also maintains its own minimum wage rate covering certain transportation and hospitality employees working within the city. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law.