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. 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. Effective January 1, 2023, civil service employees at these impacted salary ranges and step will be adjusted to minimum wage. Federal updated its highly compensated employee salary threshold to $107,432/yr. This means an employee exempt from overtime pay must earn at least $1,101.80 a week or $57,293.60 a year. 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. Using the 2023 minimum wage starting January 1, 2023, L&I calculated . Desperate Times, Desperate Measuring Cups FTC Brings Enforcement Trending in Telehealth: February 20 26, 2023, IRS Sets Deadline For Using 401(K) Plan Forfeitures, How Generative AI Generates Legal Issues in the Games Industry, DOJ Announces New Nationwide Voluntary Self-Disclosure Policy. 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. Employment Standards message: 2023 salary thresholds set for overtime exempt employees. The National Law Review - National Law Forum LLC 3 Grant Square #141 Hinsdale, IL 60521 Telephone (708) 357-3317 ortollfree(877)357-3317. Departments that have employees physically working in these cities must ensure they are paid in accordance with the city minimum wage ordinance. Visas for F and M Students Can Now Be Issued 365 Days Ahead of Program Start Date. Many states have their own salary and duties tests for determining whether an employee is exempt from overtime under state rules. Licenses for Exports to Are You Ready for the UPC? Their current minimum wage is $17.54 per hour. The state previously used two job duties tests that have been reduced to one test with language that now more closely aligns with the federal job duties tests. To qualify for the administrative, professional and executive exemptions in California, employees must meet certain salary and duties tests and must be paid at least twice the state minimum hourly wage based on a 40-hour week. Colorado. (s#%=]XzqEh$P=%D&H.&Ab}d!,x\pK+!r dev"! House Energy & Commerce Subcommittee Holds Hearing on U.S. Hunton Andrews Kurths Privacy and Cybersecurity. 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 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. 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. More information on the process and the civil service salary schedule will be available shortly. 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. 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. In 2023, the minimum wage rate in Washington State will increase to $15.74 per hour for employees 16 years of age and older, the Washington State Department of Labor & Industries announced on Sept . This same threshold applies to part-time employees; it is not pro-rated for employees who are less than full-time. HR will reclassify those employees as "nonexempt" on January 1, 2023. The Supreme Court Grants Petition to Decide Constitutionality of CFPB Understanding Your Law Firms Value Proposition, Spike in Migrants Crossing U.S.-Canada Border Raising Concerns, Bill to Amend the Gramm-Leach-Bliley Act Introduced to Congress, Energy & Sustainability Washington Update March 2023. The L&I salary threshold will change annually through 2028. 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. However, if paid by the hour, the minimum hourly rate for 2022 for computer professionals is $50.72 per hour. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. See L&Is Administrative Policy ES.A.9.6 (Exemption from Minimum Wage Act Requirements for Computer Professional Employees). HR will provide more information in the coming days, including supervisor guidance and direct communications to staff colleagues directly impacted. For more information on overtime exemptions in Washington, see our Legal Guide, State Laws on the White Collar Exemption from Overtime. Employees aged 14 to 15 years old must earn at least $13.38 per hour in 2023. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over 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. Here are some key things to know for both federal exemptions and state exemptions, along with some state-specific changes for 2023. 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). 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. In Minnesota, if an employer's gross revenue was $500,000 or more, then the minimum wage increased to $10.59 while an employer's whose gross revenue was less than $500,000 only needs to . Cities are allowed to set higher minimum wages. For additional information, visit Washington State Department of Labor and Industries Changes to Overtime Rules website and the Salary Threshold Implementation Schedule. 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. Locking Tik Tok? In a recent decision from the U.S. Supreme Court, an employee who was paid on a daily rate basis and earned more than $200,000 annually, The U.S. Department of Labor (DOL) recently released a Field Assistance Bulletin No. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. 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. The governor-appointed Ombudsman would be an advocate for injured workers by accepting, investigating, and attempting to resolve complaints related to workers compensation. These laws require the university to provide overtime pay to employees for any work hours exceeding 40 hours in a given workweek unless that employee is exempt from these laws. 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. 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. The annualized L&I threshold for 2022 is $52,752. 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. If you have questions about which rates apply to your employees or whether they are exempt, contact your Vigilant Law Group employment attorney. Suggest a topic and we might discuss it in a future blog post. 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. 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. 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.. DC Circuit to Disputes Ancillary to Patent Matters: You Cant Sit Consumer Fraud PFAS Cases Continue To Rise. (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. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal threshold. 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. 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. 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%. If you have any questions regarding this change, please see the FAQ document or discuss them with your departments HR administrator. For additional information, you can contact L&I's Employment Standards program atEAPrules@Lni.wa.gov or 1-866-219-7321. You can read theadopted rule language in Chapter 296-128 of the Washington Administrative Code. 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 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. STATE does not have a highly compensated employee exemption. Wisconsin Governor Announces Closures to Non-Essential Businesses, Senate Bill Would Create a Workers' Compensation Ombudsman, The FFCRA: DOL Releases Updated Guidance on Exempt Health Care Providers and Emergency Responders. California Law May Limit Hospitals Ability to Adopt The Joint Ankura CTIX FLASH Update - February 28, 2023, Ankura Cyber Threat Investigations and Expert Services. 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). 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. Remember that employees must be paid at the highest minimum wage rate that applies to them. The threshold salary is required regardless of how many hours an exempt employee works in the week, so even a part-time employee must be paid at this new higher salary (not a prorated portion of it) to satisfy the overtime exemption. Employees aged 14 to 15 years must earn at least $13.38 per hour. This is a 5.83 percent increase from the current 2021 minimum wage of $13.69 per hour. Note: There is also a professional exemption under state law. Critically, the nonexempt classification is not a reflection of the importance of a position. The salary rates may vary depending on the city/county where an employee resides/works in California. AG Clamps Down on Local Solar and Battery Storage Moratoria. The content and links on www.NatLawReview.comare intended for general information purposes only. 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. Starting Monday, December 26, 2022, they will need to track the hours that they work following the established time tracking procedure in their department. Expanding Regulatory Reach over Intermediaries That May Constitute How to Value Digital Assets for Donation to Charity. Seattle and SeaTac require a higher minimum wage rate for employees working within city limits (see below). Computer software employees may be paid on an hourly or a salary basis in order to qualify for exemption from California's overtime requirements. Mr. Pankratz has experience successfully representing employers in executive termination, non-compete and unfair competition disputes. 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. Effective Jan. 1, 2020, the federal minimum salary threshold increased to $684 a week. Noncompete Agreements: Washington law prohibits noncompete agreements with employees who earn less than the state's annual threshold. 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. See our Legal Guide, Noncompetition Agreements, for guidance on additional requirements in Washington. In addition to the change in the minimum salary level, the new rules update the job duties tests. 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. 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. The 2023 threshold of $65,484 will be approximately 24.1% higher than the 2022 threshold. The Health AI Frontier: New Opportunities for Innovation Across the FTC to Hold Workshop on Recyclable Claims. 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. 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 FLSA allows for exemptions from these overtime and minimum wage requirements for certain employees who work in administrative, professional and executive jobs (known as "exempt" employees). The increases mandated by voter-approved Initiative 1433 stopped in 2020. 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). EPA Releases Proposed Approach for Considering Cumulative Risks under Revised Colorado Privacy Act Rules Adopted for Review by Colorado AG. www.grsm.com is using a security service for protection against online attacks. 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. It will continue to increase annually thereafter based on inflation. The rate changes in 2024 as employers with 1-50 employees increase at least 2X the minimum wage. L&I has created an online overtime resource center to assist employers in understanding these salary requirements, including charts, fact sheets, workshops, and webinars. Thank you for suggesting a question for our next Q&A post! Please contact your HRS Service Team if you have any questions. The following is a comprehensive list of the exempt status salary threshold by state. 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). 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. 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. 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. Keep in mind that reclassification means more than just . 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. Other factors will have an impactChanges in Washingtons minimum wage are now calculated each year. "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. Information regarding minimum wage can be found on theHRS website. 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. 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). 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. Some states also bumped their exempt . 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 new state minimum wage for 2023 is $15.74 an hour. 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. NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. Small employers (1-50 employees) will have to pay at least 1.75 times the state minimum wage ($1,101.80 a week), and large employers (51 or more employees) will pay at least 2 times the minimum wage ($1,259.20 a week). The National Law Review is a free to use, no-log in database of legal and business articles. Washington Visit Here. The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. To be considered "exempt," these employees must generally satisfy three tests: Note: There are also exemptions for outside sales and computer professional employees. Washington's minimum wage is $14.49 per hour, up from $13.69 per hour in 2021. The change in the state minimum wage also increases the new state minimum salary thresholds for Overtime Exempt Employees. Her practice extends to private sector clients. She has successfully defended cases before the United States Court of Appeals for the Ninth Circuit and the Washington State Court of Appeals. For 2022, the wage for 14 and 15 year olds will be $12.32 per hour. Critically, the "nonexempt" classification is not a reflection of the importance of a position. 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