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. Washington State Overtime Salary Thresholds to Go Up in 2020 (and Up Can Nonprecedential Decisions Be Relied Upon? 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). New salary threshold implementation schedule, Threshold phase-in schedule for computer professionals paid hourly. Large employers (fifty-one or more employees) must pay exempt employees at least two times the minimum wage to meet the minimum salary requirements. 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. 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. Some states also bumped their exempt . 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). 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. This content provides practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal advice or other professional services. 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. 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. 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. Six states increased the minimum salary requirement for overtime exemption on January 1, 2023. 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). 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). The new state minimum wage for 2023 is $15.74 an hour. 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. of Business Administration. Noncompete Agreements: Washington law prohibits noncompete agreements with employees who earn less than the state's annual threshold. 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. If you would ike to contact us via email please click here. The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. 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. Federal updated its highly compensated employee salary threshold to $107,432/yr. 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. . The cities of Seattle and SeaTac also have higher minimum wage requirements that are increasing in 2023. These new Washington state laws go into effect in 2023 The list does not include the city/county thresholds for California. Licenses for Exports to Are You Ready for the UPC? Its Here The New National Cybersecurity Strategy. 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. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. DC Circuit to Disputes Ancillary to Patent Matters: You Cant Sit Consumer Fraud PFAS Cases Continue To Rise. Federal law establishes a minimum salary of $684 per week for the professional exemption. 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. 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. National Law Review, Volume XII, Number 277, Public Services, Infrastructure, Transportation. 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 . Two local jurisdictions have higher minimum wages and different labor rules than Washington State. 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved. 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. 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]. This change will impact student and non-student hourly employees, state work study rates and some civil service employees. 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. 2023 Exempt Salary Thresholds and Minimum Wages Washington Sets New Minimum Wage and Overtime Exempt Threshold for 2023 Mobile Arbeit und regionale Feiertage was gilt? Their current minimum wage is $17.54 per hour. Employment Standards message: 2023 salary thresholds set for overtime exempt employees. Reclassifying certain staff as nonexempt simply guarantees that those staff members will be paid for all hours worked and paid at time-and-a-half their hourly rate for all hours worked over 40 hours in a workweek, which was Governor Inslees exact goal in making the change. The federal Fair Labor Standards Act (FLSA) requires that employers pay most employees at least the federal minimum wage for each hour worked as well as overtime pay for all hours worked in excess of 40 in a workweek. New York Minimum Wage And Exempt-Status Salary Threshold To Increase Accepting Cryptocurrency and Digital Asset Donations: What Charities Need to Know. In addition to the change in the minimum salary level, the new rules update the job duties tests. Employees whose primary duty is teaching, instructing, or lecturing to impart knowledge are not eligible for overtime and this change does not impact them. 2022 | Washington State 2023 Salary Threshold Change Changes to these rules mean some employers might have to provide overtime, minimum wage, and paid sick leave to some employees who were previously treated as exempt. When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. (s#%=]XzqEh$P=%D&H.&Ab}d!,x\pK+!r dev"! Are Your Pay Rates Compliant for 2020? - SHRM 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. Details are available on the Department of Labor and Industries (L&I) Washington minimum wage webpage. Her practice extends to private sector clients. Free Speech Shines Bright, Illuminates Patent Owners Right to Allege California Supreme Court to Address Rounding of Employee Time. www.grsm.com is using a security service for protection against online attacks. See our Legal Guide, Noncompetition Agreements, for guidance on additional requirements in Washington. She has successfully defended cases before the United States Court of Appeals for the Ninth Circuit and the Washington State Court of Appeals. The service requires full JavaScript support in order to view this website. 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. Note: In Colorado, an exempt employees salary generally must also be sufficient to satisfy the minimum wage for all hours worked in a workweek. 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. White House Reviewing Proposed Regulations on Reinstated Superfund You Dont Need a Machine to Predict What the FTC Might Do About Is It Compensable? ~$65,478.40 (2 x Minimum Wage, Employers with 51 or more Employees). The Future of Stablecoins, Crypto Staking and Custody of Digital White House Climate and Environmental Justice Screening Tool. Employees aged 14 to 15 years must earn at least $13.38 per hour. Colorado. It will continue to increase annually thereafter based on inflation. A bill (S1982) introduced in the Senate on June 16 would create a Workers Compensation Ombudsman for Injured Workers. v5lJUmb"DbmR`U(vlf$2Y0@`5D#NW'3uUjJmLpgLF1MaLp!GHa67!?BW0CpbzqS&co6FQd+nV3XJ"cr BFND
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"9I\ AG Clamps Down on Local Solar and Battery Storage Moratoria. 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. 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 . As EPA continues to move toward identifying PFAS as Hazardous Is an OSHA Workplace Violence Standard for the Healthcare Industry on Yellen Calls on World Bank to Take Decisive Action on Climate Change, To Volunteer or Not: The Role of Community Association Board Members. Starting Monday, December 26, 2022, they will need to track the hours that they work following the established time tracking procedure in their department. 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. 2023 Exempt Status Salary Threshold by City and State. For the outside sales employee exemption, there is no minimum salary requirement. 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). Critically, the nonexempt classification is not a reflection of the importance of a position. Washington House . 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 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. US Executive Branch Update March 2, 2023. On September 30, 2022 the Washington State Department of Labor and Industries announced the new state minimum wage effective January 1, 2023: $15.74 per hour. HRS will assist colleges/areas in evaluating the impact of these changes. 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). We need your faithful generosity to exceed $28,600,000 in . Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. Thank you for suggesting a question for our next Q&A post! 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. Here are some key things to know for both federal exemptions and state exemptions, along with some state-specific changes for 2023. BY The new hourly minimum, which applies to employees 16 years and older, will increase 80 cents per. 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. Chris Edison. 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. 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). Human Resources will provide training and share best practices to guide supervisors through the impact of these changes. Changes to Overtime Rules - Washington State Department of Labor 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). These changes affect executive, administrative, and professional (EAP) workers as well as outside salespeople and computer professionals across all industries in Washington. 2023 salary thresholds set for overtime exempt employees, Chapter 296-128 of the Washington Administrative Code. 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 . 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. Important information for employers is also available via the firms webinar and podcast programs. 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. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. It will continue to increase annually thereafter based on inflation. Beginning January 1, 2022, the Washington State's minimum wage will be $14.49 per hour, increasing from the current minimum wage of $13.69 per hour. The Temporary Employment and Student Employment Classification/Compensation Plansareavailable on theHRS website. 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. 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. This same threshold applies to part-time employees; it is not pro-rated for employees who are less than full-time. 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. 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. In addition, many of our staff colleagues perform duties that meet the laws exemptions for Executive, Administrative, or Professional positions. 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. Washington Overtime Exemption Laws In 2022 | Know Your Rights A new 2023 version of the required workplace poster is available online. Employers seeking to classify employees as exempt from overtime should ensure employees meet both federal and state exemption criteria. The 2023 threshold of $65,484 will be approximately 24.1% higher than the 2022 threshold. Recent CFPB Actions Focus on Protecting Military Families, New and Updated Guidance on the Scope of the UK Plastic Packaging Tax. Y@FLc)uy c? An explanation of this requirement and a sample notice form can be found on Seattles wage theft ordinance webpage. House Energy & Commerce Subcommittee Holds Hearing on U.S. Hunton Andrews Kurths Privacy and Cybersecurity. For information about any potential impacts on academic personnel, please email the Office of Academic Personnel at acadpers@uw.edu or call 206-221-UWAP (8927). 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. 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. 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 See new exemption . 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. The list includes some special districts in states but does not include all of said districts. 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. 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. Departments must monitor employee work location to ensure the pay rate is correct and make necessary adjustments. Exempt Employees: 2023 Minimum Salary Requirements Waters of the United States and Winston Churchill. In order to be exempt from overtime, employees must also meet one of the duties tests. "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. 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). Expanding Regulatory Reach over Intermediaries That May Constitute How to Value Digital Assets for Donation to Charity. 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C. Tips: The minimum wage rates in both Seattle and SeaTac continue to be higher than the statewide rate in Washington. Exempt computer professionals may be paid based on either the exempt salary threshold ($52,743.60 annually for 2022) or by the hour. 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. Remember that employees must be paid at the highest minimum wage rate that applies to them. 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? 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 . If you have questions about which rates apply to your employees or whether they are exempt, contact your Vigilant Law Group employment attorney. For a helpful chart, see L&Is salary implementation threshold schedule. Effective January 1, 2023, civil service employees at these impacted salary ranges and step will be adjusted to minimum wage. Statement in compliance with Texas Rules of Professional Conduct. 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. Employers have several options to comply with the new federal and state salary thresholds: Reclassify exempt positions as hourly, non-exempt positions. Breaking the Link New Developments on U.S. Use tab to navigate through the menu items. Especially in changing times, thank you so much for your hard work and all you do for Seattle University and our campus community. State DOES NOT count nondiscretionary bonuses, incentive payments and commissions payments toward salary threshold. 2023 Minimum Wage Increases and Exempt Salary Thresholds The changes are summarized below: To be classified as exempt from overtime under state law (Alaska Statute 23.10.055), bona fide administrative, professional and executive employees must satisfy certain salary and duties tests. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. g The following is a comprehensive list of the exempt status salary threshold by state. 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. 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. In Washington, employees must satisfy certain salary and duties tests to be classified as exempt from overtime under state law. 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. (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. All our faculty and staff, regardless of whether they are exempt or nonexempt, perform important work in support of our mission. 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. 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%. The annualized L&I threshold for 2022 is $52,752. This rate is subject to mandatory annual adjustments which are usually announced in October or early November. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor. As a result, employers must pay a salary of at least $1,240 per week beginning January 1, 2023 to qualify for the exemption. 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. 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. 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. The state of Washington has announced increases in the minimum wage rate and the exempt salary thresholds for employees, effective January 1, 2023. The Washington State Labor and Industries (L&I) announced the minimum salary an employee must earn to be exempt from overtime. Please understand that merely contacting us does not create an attorney-client relationship. 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. However, if paid by the hour, the minimum hourly rate for 2022 for computer professionals is $50.72 per hour. Under state law, 14 and 15-year-olds can be paid 85% which will be $13.38 in 2023. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal threshold. 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. Visas for F and M Students Can Now Be Issued 365 Days Ahead of Program Start Date. WA State threshold for OT exempt employees will rise in 2023 by 24% PDF Salary threshold implementation schedule - Washington State Department Please contact your HRS Service Team if you have any questions. 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. 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.