14. Where there are differences between the state and federal overtime rules, the employer must follow the rule that is most favorable to the worker. A new rate increase will be announced and be effective on July 1, 2022. 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. Everything HR professionals need to know about the FLSA salary threshold. For employees with multiple appointment types with the same employer, it is sometimes unclear which position is their primary duty for purposes of determining exempt or nonexempt status. 19. Special provisions apply to workers in American Samoa and the Commonwealth of the Northern Mariana Islands. The new rate will take effect Jan. 1, 2020. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. A bathroom, even if private, is not a permissible location under the Act. . The minimum salary threshold for individuals to be exempt from overtime will increase from $455 per week ($23,660 annually) to $684 per week ($35,568 annually). Employers are prohi-bited from taking any action to displace employees in order to hire employees at the youth minimum wage. This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. In Washington, employees must satisfy certain salary and duties tests to be classified as exempt from overtime under state law. $11.00. The states minimum wage is scheduled to increase on January 1, 2022 and varies based on employer size. .agency-blurb-container .agency_blurb.background--light { padding: 0; } 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. This is a very fact specific question that should be asked of your assigned Labor and Personnel or Education Division AAG. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. Five states are increasing the minimum salary requirement for overtime exemption on January 1, 2022. The .gov means its official. 25 states are raising their minimum wage in 2022. 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. As a result, the minimum salary required for the executive and administrative exemptions will increase on December 31, 2021 as follows: Note: There is also a professional exemption under state law. $12.00. .manual-search ul.usa-list li {max-width:100%;} Santa Fe County: $12.32 per hour for nontipped employees and $3.69 per hour for tipped employees (a new CPI adjustment will be announced and become effective on March 1, 2022), Airport employees: $18.00 (up from $17.00), Fast food workers regardless of location: $15.00 (up from $14.50), Long Island and Westchester: $15.00 (up from $14.00), Metro Portland area: $14.75 per hour (up from $14.00) on July 1, 2022, Rural areas: $12.50 per hour (up from $12.00) on July 1, 2022. The final rule is effective Jan. 1,2020. Effective January 1, 2021, the rule increases the minimum salary required for the executive, administrative, and professional exemptions under state law as follows: Employers with 50 or Fewer Employees: $821.40 per week. Because exemptions are generally narrowly defined under the FLSA, an employer should carefully check the exact terms and conditions for each. Virtual & Washington, DC | February 26-28, 2023. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. Updates would not be automatic and would continue to require notice-and-comment rulemaking. Unlike the federal law, WMWA does not include a highly compensated employees (HCE) standard. 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), Overtime eligible - documenting hours worked, Washington Management Service (WMS) coordinator roles and meetings, Furlough and layoff information for employers, Workforce diversity, equity and inclusion, Overtime Eligible - Documenting Hours Worked, executive, administrative, professional, computer and outside sales employees, One Washington - transformation of enterprise systems, Memos sent to agencies and the Legislature. var currentUrl = window.location.href.toLowerCase(); 13. Who should you contact regarding agency or higher education institution specific questions? Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. Employees have to meet both the threshold salary test and the duties test to be considered overtime exempt. The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. . Under federal law, the total annual compensation level for highly compensated employees is $107,432 per year. Exemptions from Both Minimum Wage and Overtime Pay. The final rule is effective Jan. 1, 2020 and isestimated toextend overtime protections to more than one million workers who are not currently eligible under federal law. The states minimum wage is scheduled to increase on January 1, 2022. 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. Such employment is permitted only under certificates issued by WHD. Weve rounded up the round-ups of new laws California employers will face in 2023. Paid leave does not count as time worked for non-represented employees. SHRM Employment Law & Compliance Conference, regardless of what happens to the now-blocked federal overtime rule, raising salaries for exempt employees above the threshold, Californias Exempt Salary Threshold Will Rise Regardless of Blocked Overtime Rule, New OSHA Guidance Clarifies Return-to-Work Expectations, Trump Suspends New H-1B Visas Through 2020, Faking COVID-19 Illness Can Have Serious Consequences, White House Takes Action Against Migrant Child Labor, U.S. Companys Mandatory Video Surveillance Violated Dutch Rights. The fate of the federal overtime rule remains uncertain, but New York employers need to be aware of state-level changes that spell out salary threshold increases for the administrative and. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. Fair Labor Standards Act Effective Date of Policy: 03/01/2021 Next Scheduled Review: 04/01/2022 . Whether compliance would be an undue hardship is determined by looking at the difficulty or expense of compliance for a specific employer in comparison to the size, financial resources, nature, and structure of the employers business. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. For represented positions, refer to the appropriate collective bargaining agreement to ensure required notifications occur when making changes to an employees overtime status. If a salary is paid on other than a weekly basis, the weekly pay must be determined in order to compute the regular rate and overtime pay. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} ol{list-style-type: decimal;} However, at any age, minors may deliver newspapers; perform in radio, television, movie, or theatrical productions; work for parents in their solely-owned non-farm business (except in mining, manufacturing or on hazardous jobs); or gather evergreens and make evergreen wreaths. Subscribe. If you are represented, employers and employees should reviewcollective bargaining agreements for specific requirements concerning work period designations and overtime eligibility. You have successfully saved this page as a bookmark. Please confirm that you want to proceed with deleting bookmark. The employee is entitled to an additional one-half times this regular rate for each hour over 40, plus the full piecework earnings. As such, absent the limited exceptions for higher education, if a part-time employees weekly pay doesnt reach $958.30 per week, they are eligible for overtime. Casual babysitters and persons employed as companions to the elderly or infirm. What's the Overtime Threshold? 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. 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. Also, the FLSA does not limit the number of hours in a day or days in a week an employee may be required or scheduled to work, including overtime hours, if the employee is at least 16 years old. New DOL Overtime Threshold in 2022 United States Department of Labor (DOL) is expected to issue a new proposal for a new salary threshold for several overtime exemptions under the Fair Labor Standards Act (FLSA). The list includes some special districts in states but does not include all of said districts. What is the salary requirement for part-time salaried workers? Flagstaff: $12.80 per hour: This is a $0.65 increase from the 2021 rate of $12.15 per hour. /*--> p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; 7. For hourly computer professionals, L&Is new salary threshold is $47.92 per hour. When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. Under this agreement, the regular rate will vary in overtime weeks. 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. Will seasonal employees be held to the $49,831.60 annual threshold or the $958.30 per week threshold? Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Domestic service workers such as day workers, housekeepers, chauffeurs, cooks, or full-time babysitters are covered if: Tipped employees are individuals engaged in occupations in which they customarily and regularly receive more than $30 a month in tips. The Department of Labor considers athletic coaches to qualify for the teacher exemption if they instruct student athletes in how to perform their sport. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. The salary threshold test should be applied to the pre-determined salary set by the salary schedule without regard to potential furloughs that may arise. Hours Worked - Covered employees must be paid for all hours worked in a 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. Revised September 2016. 8. Direct any questions you may have to classandcomp@ofm.wa.gov and reach out to your assigned Assistant Attorney General. Also included are individuals whose earning or productive capacity is impaired by a physical or mental disability, including those related to age or injury, for the work to be performed. The employer may consider tips as part of wages, but the employer must pay at least $2.13 an hour in direct wages. In addition to the FLSA, WHD enforces and administers a number of other labor laws. WAC 296-128-533(1)(a). WHD does not consider filing of a comment with the Ombudsman as a factor in determining how to resolve issues raised during a compliance action. Special information is required for homeworkers, for employees working under uncommon pay arrangements, for employees to whom lodging or other facilities are furnished, and for employees receiving remedial education. 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. Members may download one copy of our sample forms and templates for your personal use within your organization. .manual-search ul.usa-list li {max-width:100%;} Virtual & Washington, DC | February 26-28, 2023. .h1 {font-family:'Merriweather';font-weight:700;} 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. Will employees who are currently considered exempt under FLSA remain exempt under WMWA? Computer software employees may be paid on an hourly or a salary basis in order to qualify for exemption from Californias overtime requirements. $('.container-footer').first().hide(); Please purchase a SHRM membership before saving bookmarks. Employees could switch from overtime eligible to overtime exempt once their salary exceeds the new salary threshold, provided employees duties also meet the WMWA exemption criteria. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. } In 2022, employees in Washington must earn a salary of at least 1.75 times the minimum wage for a 40-hour workweek to qualify for exemption. Before sharing sensitive information, make sure youre on a federal government site. The increase for larger employers has yet to be announced because it is tied to the CPI, but the rate for smaller employers will jump to $14.50. Wages required by the FLSA are due on the regular payday for the pay period covered. Nonexempt employeesmust be paid time and a half for any hours worked more than 40 in a workweek. The FLSA requirement of break time for nursing mothers to express breast milk does not preempt State laws that provide greater protections to employees (for example, providing compensated break time, providing break time for exempt employees, or providing break time beyond 1 year after the childs birth). Please contact your assigned AAG for analysis. Consider the following: Seattle: $17.27 per hour (up from $16.69) for employers with more than 500 employees and for employers with fewer than 500 employees that dont pay for benefits and $15.75 per hour for employers with 500 or fewer employees that pay tips and benefits (up from $15.00 per hour). The Fair Labor Standards Act (FLSA) is a federal law which establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments. The salary threshold required to exempt EAP employees from overtime protections under FLSA are different. $35,568 (Current Federal) N/A. 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. . Youths 18 years or older may perform any job, whether hazardous or not, for unlimited hours; Minors 16 and 17 years old may perform any nonhazardous job, for unlimited hours; and. Nondiscretionary bonuses and incentive . 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. However, some States do have laws under which such claims (sometimes including fringe benefits) may be filed. As noted above, the weekly standard salary level will continue to increase each year over the next eight years. For that week only, the employee would be entitled to protections under the Minimum Wage Act, which would include payment for all time worked over 40. Please log in as a SHRM member before saving bookmarks. In non-farm work, the permissible jobs and hours of work, by age, are as follows: Fourteen is the minimum age for most non-farm work. In such a case, the Department will not seek the same back wages and liquidated damages on that employees behalf. Note: in limited circumstances, the salary threshold does not apply to certain professionals (e.g., teachers, doctors, and lawyers) because those professionals are considered exempt under the WMWA based on their duties alone. 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." VisitOvertime Eligible - Documenting Hours Worked to find out more information on the state's process. Only employees who are not exempt from the FLSAs overtime pay requirements are entitled to breaks to express milk. $("span.current-site").html("SHRM MENA "); In many cases, the state criteria are harder to meet than the federal criteria. If the teaching activities are covered by the professional exemption then the employee is also exempt from paid sick leave coverage. Beginning January 1, 2022, these employees must earn at least: $50 per hour (for all hours worked); or A monthly salary of $8,679.16; and An annual salary of $104,149.81. Changes to the standard salary level to exempt EAP employees from WMWA overtime requirements are effective January 1, 2021. Such employees include those who: work in communications or transportation; regularly use the mails, telephones, or telegraph for interstate communication, or keep records of interstate transactions; handle, ship, or receive goods moving in interstate commerce; regularly cross State lines in the course of employment; or work for independent employers who contract to do clerical, custodial, maintenance, or other work for firms engaged in interstate commerce or in the production of goods for interstate commerce. 1. 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