The Washington state overtime threshold for exempt jobs as of January 1, 2023 is set by state rule at 2 times the state minimum wage and will be $1,259.20 per week. To be considered "exempt," these employees must generally satisfy three tests: Note: There are also exemptions for outside sales and computer professional employees. Y@FLc)uy c? 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. Starting Monday, December 26, 2022, they will need to track the hours that they work following the established time tracking procedure in their department. Locking Tik Tok? 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). Because the salary. 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). The cities of Seattle and SeaTac also have higher minimum wage requirements that are increasing in 2023. 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. Further information on federal, state, and major locality wage and hour laws is available in the firms OD Comply: State Wage & Hour subscription materials, which are updated and provided to OD Comply subscribers as the law changes. 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. Exempt computer professionals may be paid based on either the exempt salary threshold ($52,743.60 annually for 2022) or by the hour. BREAKING DOWN THE PRIVACY ACT REVIEW REPORT #3: Removal of The Small White House Releases National Cybersecurity Strategy, Illinois High Court Rules Per-Scan Damages Can Be Awarded Under BIPA, Grassley-Wyden Bill Aims to Fix Broken Tax Whistleblower Law, Lessons Learned From 2022s Trade Secret Verdicts, Mass. The L&I salary threshold will change annually through 2028. Chris Edison, L&Is salary implementation threshold schedule, State Laws on the White Collar Exemption from Overtime, ADA: Reasonable Accommodation and the Interactive Process, Vigilant Member Hiring & Retention Survey, $18.69 per hour (up from $17.27 per hour) for large employers (more than 500 employees worldwide); or, $18.69 per hour for smaller employers (500 or fewer employees) who dont pay at least $2.19 per hour toward an employees medical benefits and/or if the employee doesnt earn at least that much per hour in tips; or. In other cases, employers may need to increase salaries for exempt employees. Washington Visit Here. 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. NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. Seattle's minimum wage for large employers will increase from $17 . "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. See new exemption . This increase impacts the 2022 salary thresholds for overtime exempt workers; specifically, to be exempt from overtime pay, an employee needs to be paid at least $1,014.30 per week ($52,743.60 annually). Supreme Court Clarifies the Meaning Salary Basis Under Federal OIRA Calls for Feedback on Recommendations to Encourage More FTCs One-Two Punch on Data Tracking and Health Privacy. 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. Your assigned HRS representative will be in contact with you with additional information. Given the steep increase in the minimum wage, the states salary requirements for exempt employees are also increasing significantly. The content and links on www.NatLawReview.comare intended for general information purposes only. 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. Small employers (with 1-50 employees) will have a more gradual phase-in schedule to give them additional time to comply with the new rules compared to large companies (51 or more employees). This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. 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. 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. A new 2023 version of the required workplace poster is available online. The annually increasing salary thresholds specifically apply to the many university positions within the Executive, Administrative, and Professional exemptions. Note: The minimum salary threshold does not apply bona fide teachers exempted under the Professional Exemption. www.grsm.com is using a security service for protection against online attacks. The Washington State Labor and Industries (L&I) announced the minimum salary an employee must earn to be exempt from overtime. The change in the state minimum wage also increases the new state minimum salary thresholds for Overtime Exempt Employees. This process is automatic. The city hasnt yet announced the 2023 rate for those employees. Employment Standards message: 2023 salary thresholds set for overtime exempt employees. The NLR does not wish, nor does it intend, to solicit the business of anyone or to refer anyone to an attorney or other professional. This means an employee exempt from overtime pay must earn at least $1,101.80 a week or $57,293.60 a year. The rate changes in 2024 as employers with 1-50 employees increase at least 2X the minimum wage. The annualized L&I threshold for 2022 is $52,752. Departments that have employees physically working in these cities must ensure they are paid in accordance with the city minimum wage ordinance. 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. Remember that employees must be paid at the highest minimum wage rate that applies to them. 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. Expanding Regulatory Reach over Intermediaries That May Constitute How to Value Digital Assets for Donation to Charity. $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). 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. 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. For example: relocation pay. 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. 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. 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. SeaTac minimum wage: The City of SeaTac also maintains its own minimum wage rate covering certain transportation and hospitality employees working within the city. The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. Especially in changing times, thank you so much for your hard work and all you do for Seattle University and our campus community. Due to the monthly base pay model at the UW requiring rounding up to a whole dollar amount, the UWs monthly and annualized thresholds are slightly higher than the states weekly threshold as shown in the table below: L&I Salary Threshold effective Jan 1, 2023. 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. Sign up to receive email updateson the overtime employment rule changes and other wage matters. 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: The Washington State Department of Labor & Industries (L&I) determines minimum thresholds using a multiplier of the state minimum wage. The overtime threshold . This saying is often heard from Vigilants own Safety Manager, Manish Gooneratne. 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. Governor Evers stated he would issue the order on Tuesday, March 24, 2020. Recent CFPB Actions Focus on Protecting Military Families, New and Updated Guidance on the Scope of the UK Plastic Packaging Tax. Public input during the rulemaking processL&I updated the overtime rules through a rulemaking process that began in March 2018. 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). Under state law, 14 and 15-year-olds can be paid 85% which will be $13.38 in 2023. An explanation of this requirement and a sample notice form can be found on Seattles wage theft ordinance webpage. Seattles minimum wage rates apply to all nonexempt employees for all hours they work within the city limits. Beginning January 1, 2023, these employees must earn at least: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. These workers are typically "white collar" workers who often have more economic security and relative bargaining power than lower-wage workers. The Temporary Employment and Student Employment Classification/Compensation Plansareavailable on theHRS website. However, if paid by the hour, the minimum hourly rate for 2022 for computer professionals is $50.72 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 The Future of Stablecoins, Crypto Staking and Custody of Digital White House Climate and Environmental Justice Screening Tool. EPA Releases Proposed Approach for Considering Cumulative Risks under Revised Colorado Privacy Act Rules Adopted for Review by Colorado AG. The Washington State minimum wage increases Saturday, reflecting inflation over the past year. 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. Washington's overtime employment rules have changed. If you have questions about which rates apply to your employees or whether they are exempt, contact your Vigilant Law Group employment attorney. For large businesses (51 or more non-exempt WA . We need your faithful generosity to exceed $28,600,000 in . (1) $45,000 ($865.38/week) an exempt executive, administrative, or professional employee; (2) $101,250 for those who meet the duties-requirements for HCE employees. University of Washington School of Law, J.D. The service requires full cookie support in order to view this website. Statement in compliance with Texas Rules of Professional Conduct. $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. All our faculty and staff, regardless of whether they are exempt or nonexempt, perform important work in support of our mission. 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. Hes full of profound truisms, and this one has always, On January 14, 2023, the Washington Department of Labor & Industries (L&I)s COVID-19 (coronavirus) emergency rules that had been in place for temporary worker housing (TWH) in the, Evaluate classifications for employees paid a daily rate She has successfully defended cases before the United States Court of Appeals for the Ninth Circuit and the Washington State Court of Appeals. 2023 salary thresholds set for overtime exempt employees, Chapter 296-128 of the Washington Administrative Code. Mandatory Arbitration Agreements Remain Valid in California, Antitrust Practitioners Expect Activity With Climate Issues. 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. 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. In addition, work volume is dependent on operational needs and work must be performed to meet those needs. Its Here The New National Cybersecurity Strategy. The new hourly minimum, which applies to employees 16 years and older, will increase 80 cents per. 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. The salary threshold under federal law is only $684 per week, so employers in Washington must pay at the higher state level. 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. Employees aged 14 to 15 years old must earn at least $13.38 per hour in 2023. The governor-appointed Ombudsman would be an advocate for injured workers by accepting, investigating, and attempting to resolve complaints related to workers compensation. Noncompete Agreements: Washington law prohibits noncompete agreements with employees who earn less than the state's annual threshold. Please contact your HRS Service Team if you have any questions. 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. 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). The Health AI Frontier: New Opportunities for Innovation Across the FTC to Hold Workshop on Recyclable Claims. This is a 5.83 percent increase from the current 2021 minimum wage of $13.69 per hour. On December 31, 2022, the minimum wage increased in areas other than New York City and Nassau, Suffolk, and Westchester Counties. Updated: Dec 13, 2022. . 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%. 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C. 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. The new state minimum wage for 2023 is $15.74 an hour. The public submitted almost 2,300 comments by email, fax, and mail, and 182 people testified during public hearings during this process. The Emergency Family and Medical Leave Expansion Act (EMFLEA) and the Emergency Paid Sick Leave Act (EPSLA) authorize the DOL to issue regulations to exempt health care providers and emergency responders from eligibility for coverage under the FFCRA. (s#%=]XzqEh$P=%D&H.&Ab}d!,x\pK+!r dev"! This is true in certain other states as well, some of which will have a new minimum wage in 2023. BY For the outside sales employee exemption, there is no minimum salary requirement. State DOES NOT count nondiscretionary bonuses, incentive payments and commissions payments toward salary threshold. Waters of the United States and Winston Churchill. Large employers (fifty-one or more employees) must pay exempt employees at least two times the minimum wage to meet the minimum salary requirements. The following is a comprehensive list of the exempt status salary threshold by state. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. As a result, professional staff, contract covered staff, and classified non-union overtime positions that do not meet . 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.