The salary rates may vary depending on the city/county where an employee resides/works in California. The new hourly minimum, which applies to employees 16 years and older, will increase 80 cents per. Departments that have employees physically working in these cities must ensure they are paid in accordance with the city minimum wage ordinance. 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. The L&I salary threshold will change annually through 2028. This change will impact student and non-student hourly employees, state work study rates and some civil service employees. 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. 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. 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. 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. See new exemption . Departments do not need to take action for the minimum wage increase. The governor-appointed Ombudsman would be an advocate for injured workers by accepting, investigating, and attempting to resolve complaints related to workers compensation. Locking Tik Tok? The annually increasing salary thresholds specifically apply to the many university positions within the Executive, Administrative, and Professional exemptions. Words With Friends, Part 1: Insurance Requirements and Contracts, Legislator Proposes To Expand CFL To Encompass "Commercial CERCLA PFAS Scope May Broaden To Many More PFAS, AI Avatar App is the Latest Target of BIPA Class Action Litigation. Other factors will have an impactChanges in Washingtons minimum wage are now calculated each 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's minimum wage is $14.49 per hour, up from $13.69 per hour in 2021. Expanding Regulatory Reach over Intermediaries That May Constitute How to Value Digital Assets for Donation to Charity. Federally Recognized Holidays, Employer Considerations for DOLs New AEWR Rule. Free Speech Shines Bright, Illuminates Patent Owners Right to Allege California Supreme Court to Address Rounding of Employee Time. 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. Employers have several options to comply with the new federal and state salary thresholds: Reclassify exempt positions as hourly, non-exempt positions. 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. In addition, many of our staff colleagues perform duties that meet the laws exemptions for Executive, Administrative, or Professional positions. 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 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. A new 2023 version of the required workplace poster is available online. Using the 2023 minimum wage starting January 1, 2023, L&I calculated the salary thresholds for employers with 1-50 employees to be at least 1.75X the state minimum wage, or $1,101.80/week ($57,293 . In 2019, at the direction of Governor Inslee, the Washington State Department of Labor & Industries (L&I) published a new schedule of minimum salary thresholds through January 1, 2028. House Energy & Commerce Subcommittee Holds Hearing on U.S. Hunton Andrews Kurths Privacy and Cybersecurity. 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. "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. HR will provide more information in the coming days, including supervisor guidance and direct communications to staff colleagues directly impacted. Learn how Vigilant membership can help with your complex employment situations. 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. This website presents general information in nontechnical language. The content and links on www.NatLawReview.comare intended for general information purposes only. 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. EPA Releases Proposed Approach for Considering Cumulative Risks under Revised Colorado Privacy Act Rules Adopted for Review by Colorado AG. The service requires full JavaScript support in order to view this website. www.grsm.com is using a security service for protection against online attacks. The list does not include the city/county thresholds for California. For additional information, you can contact L&I's Employment Standards program atEAPrules@Lni.wa.gov or 1-866-219-7321. Good News for American Businesses: H1-B Denial Rates Plummet Under USCIS Extends Comment Period for Proposed Fee Increases, OFCCP Rescinds Trump-Era Religious Exemption Rule. 2023 salary thresholds set for overtime exempt employees, Chapter 296-128 of the Washington Administrative Code. 2023 University of Washington | Seattle, WA, University of Washington Human Resources Home, Final candidate guide to COVID-19 vaccination requirement, HR Benefits, Analytics & Information Systems, Professional & Organizational Development, FLSA and WMWA overtime eligibility and exemption, Checklist Create professional staff temporary position, Department responsibility for pay equity review, Wage and salary setting for staff and student positions, Student hourly employee compensation and work hours limits, Total compensation statements for UW staff, WA State threshold for OT exempt employees will rise in 2023 by 24%. of Business Administration. Due to an increase in the state's minimum wage, the minimum salary required for the administrative, professional and executive exemptions from overtime under state law increased to $796.17 per week on January 1, 2023. When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. 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. 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. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor. In Washington, employees must satisfy certain salary and duties tests to be classified as exempt from overtime under state law. ~$65,478.40 (2 x Minimum Wage, Employers with 51 or more Employees). BY 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). 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. Employers may want to consult legal counsel about how this rule may impact them. Employers seeking to classify employees as exempt from overtime should ensure employees meet both federal and state exemption criteria. Seattle and SeaTac require a higher minimum wage rate for employees working within city limits (see below). Seattle's minimum wage for large employers will increase from $17 . Statement in compliance with Texas Rules of Professional Conduct. The overtime threshold . The Washington State Labor and Industries (L&I) announced the minimum salary an employee must earn to be exempt from overtime. Noncompete Agreements: Washington law prohibits noncompete agreements with employees who earn less than the state's annual threshold. 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. Its Here The New National Cybersecurity Strategy. The public submitted almost 2,300 comments by email, fax, and mail, and 182 people testified during public hearings during this process. 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. As a result, employers must pay a salary of at least $1,240 per week beginning January 1, 2023 to qualify for the exemption. 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. 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. The Health AI Frontier: New Opportunities for Innovation Across the FTC to Hold Workshop on Recyclable Claims. This rate is subject to mandatory annual adjustments which are usually announced in October or early November. Employees whose primary duty is teaching, instructing, or lecturing to impart knowledge are not eligible for overtime and this change does not impact them. 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. Watch future newsletters for an update on the increased rate for 2023. 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. 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 minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. 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. This saying is often heard from Vigilants own Safety Manager, Manish Gooneratne. 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 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. 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. Employment Standards message: 2023 salary thresholds set for overtime exempt employees. Critically, the nonexempt classification is not a reflection of the importance of a position. 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.