The Washington State minimum wage increases Saturday, reflecting inflation over the past year. 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. 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. 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. The Washington State Labor and Industries (L&I) announced the minimum salary an employee must earn to be exempt from overtime. 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. See our Legal Guide, Noncompetition Agreements, for guidance on additional requirements in Washington. The effective date for the changes was July 1, 2020. A new 2023 version of the required workplace poster is available online. 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. DC Circuit to Disputes Ancillary to Patent Matters: You Cant Sit Consumer Fraud PFAS Cases Continue To Rise. The following is a comprehensive list of the exempt status salary threshold by state. To be considered "exempt," these employees must generally satisfy three tests: Note: There are also exemptions for outside sales and computer professional employees. Visas for F and M Students Can Now Be Issued 365 Days Ahead of Program Start Date. 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, student and non-student hourly employeeswith a pay rate below minimum wage will be automatically increased to $15.74 per hour. Keep in mind that reclassification means more than just . 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 The list includes some special districts in states but does not include all of said districts. For more information on overtime exemptions in Washington, see our Legal Guide, State Laws on the White Collar Exemption from Overtime. Please enable cookies on your browser and try again. All employers who choose to pay their exempt computer professionals an hourly rate rather than the salaried exempt rate described above must pay them at least 3.5 times the state minimum wage, which works out to $55.09 per hour in 2023. Watch future newsletters for an update on the increased rate for 2023. This is true in certain other states as well, some of which will have a new minimum wage in 2023. Washington Visit Here. For additional information, you can contact L&I's Employment Standards program atEAPrules@Lni.wa.gov or 1-866-219-7321. Accepting Cryptocurrency and Digital Asset Donations: What Charities Need to Know. (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. Please contact your HRS Service Team if you have any questions. 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. Under state law, 14 and 15-year-olds can be paid 85% which will be $13.38 in 2023. 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. Check outtheovertime rulemaking documents. In Washington, employees must satisfy certain salary and duties tests to be classified as exempt from overtime under state law. 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. State DOES NOT count nondiscretionary bonuses, incentive payments and commissions payments toward salary threshold. 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. 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. STATE does not have a highly compensated employee exemption. In order to be exempt from overtime, employees must also meet one of the duties tests. 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). The 2023 threshold of $65,484 will be approximately 24.1% higher than the 2022 threshold. Large employers (fifty-one or more employees) must pay exempt employees at least two times the minimum wage to meet the minimum salary requirements. Waters of the United States and Winston Churchill. White House Reviewing Proposed Regulations on Reinstated Superfund You Dont Need a Machine to Predict What the FTC Might Do About Is It Compensable? The following 5 Part Strategy was voted by the UCC Executive Committee to help navigate the implications of the Washington Salary Threshold on our Conference: Radical prayer We ask for your devoted prayers and financial support for our 2022 Tithe to exceed $500,000 above budget. The National Law Review is a free to use, no-log in database of legal and business articles. 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]. 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. It will continue to increase annually thereafter based on inflation. 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. Tips: The minimum wage rates in both Seattle and SeaTac continue to be higher than the statewide rate in Washington. 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. US Executive Branch Update March 2, 2023. Information regarding minimum wage can be found on theHRS website. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. www.grsm.com is using a security service for protection against online attacks. Ms. Bannons employment law practice includes providing employers proactive advice and practical solutions to current or potential employee problems to manage risk related to discipline Ms. Fletcher represents employers in all aspects of employment claims and litigation in federal and state courts, at arbitration, mediation, and before administrative agencies, including matters involving wrongful termination, discrimination, sexual harassment, disability and religious accommodation, retaliation, wage and hour, and breach of contract claims. Note: In Colorado, an exempt employees salary generally must also be sufficient to satisfy the minimum wage for all hours worked in a workweek. 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. Mandatory Arbitration Agreements Remain Valid in California, Antitrust Practitioners Expect Activity With Climate Issues. For 2022, the wage for 14 and 15 year olds will be $12.32 per hour. These changes affect executive, administrative, and professional (EAP) workers as well as outside salespeople and computer professionals across all industries in Washington. When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. g 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.. 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). . 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. See L&Is Administrative Policy ES.A.9.6 (Exemption from Minimum Wage Act Requirements for Computer Professional Employees). You can read theadopted rule language in Chapter 296-128 of the Washington Administrative Code. 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. Remember that employees must be paid at the highest minimum wage rate that applies to them. 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. The Future of Stablecoins, Crypto Staking and Custody of Digital White House Climate and Environmental Justice Screening Tool. The hearings were held in July and August 2019 in Tumwater, Seattle, Bellingham, Ellensburg, Kennewick, Spokane and Vancouver. 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. California Law May Limit Hospitals Ability to Adopt The Joint Ankura CTIX FLASH Update - February 28, 2023, Ankura Cyber Threat Investigations and Expert Services. Its Here The New National Cybersecurity Strategy. 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%. 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. Especially in changing times, thank you so much for your hard work and all you do for Seattle University and our campus community. The increases mandated by voter-approved Initiative 1433 stopped in 2020. 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. Federally Recognized Holidays, Employer Considerations for DOLs New AEWR Rule. You will be redirected once the validation is complete. Employers seeking to classify employees as exempt from overtime should ensure employees meet both federal and state exemption criteria. 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. Mar 02, 2023 Other factors will have an impactChanges in Washingtons minimum wage are now calculated each year. Critically, the "nonexempt" classification is not a reflection of the importance of a position. This means an employee exempt from overtime pay must earn at least $1,101.80 a week or $57,293.60 a year. In addition to the change in the minimum salary level, the new rules update the job duties tests. In addition, work volume is dependent on operational needs and work must be performed to meet those needs. Colorado. In addition, many of our staff colleagues perform duties that meet the laws exemptions for Executive, Administrative, or Professional positions. 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. The state anticipates that by 2028, nearly 260,000 positions that were previously exempt under the Minimum Wage Act will be impacted. of Business Administration. BY Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal threshold. To be classified as exempt from New York's overtime requirements, executive and administrative employees must meet minimum salary requirements and satisfy certain duties tests. Ms. Fletcher advises employers on personnel You are responsible for reading, understanding and agreeing to the National Law Review's (NLRs) and the National Law Forum LLC's Terms of Use and Privacy Policy before using the National Law Review website. Given the steep increase in the minimum wage, the states salary requirements for exempt employees are also increasing significantly. See new exemption . Departments that have employees physically working in these cities must ensure they are paid in accordance with the city minimum wage ordinance. 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. 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. On January 1, 2021, Washington's minimum wage will increase from $13.50 to $13.69. For the outside sales employee exemption, there is no minimum salary requirement. This rate is subject to mandatory annual adjustments which are usually announced in October or early November. This is a 5.83 percent increase from the current 2021 minimum wage of $13.69 per hour. Six states increased the minimum salary requirement for overtime exemption on January 1, 2023. Our employment attorneys and workplace safety experts will take a look at your question and possibly select it for our next post. For additional information, please see the HR website: FLSA and WMWA overtime eligibility and exemption. Critically, the nonexempt classification is not a reflection of the importance of a position. This change will impact student and non-student hourly employees, state work study rates and some civil service employees. University of Washington School of Law, J.D. The Health AI Frontier: New Opportunities for Innovation Across the FTC to Hold Workshop on Recyclable Claims. 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). Washington's overtime employment rules have changed. Large employers (fifty-one or more employees) must pay exempt employees at least two times the minimum wage to meet the minimum salary requirements. 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved. 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. The Washington State Labor and Industries (L&I) announced the minimum salary an employee must earn to be exempt from overtime. 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. As a result, employers must pay a salary of at least $1,240 per week beginning January 1, 2023 to qualify for the exemption. Departments do not need to take action for the minimum wage increase. 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. If other salary changes are needed, departments should process those actions in accordance withuniversity policies. 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. 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. 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. Note: There is also a professional exemption under state law. Federal law establishes a minimum salary of $684 per week for the professional exemption. Seattle minimum wage: The City of Seattle is increasing its minimum wage requirement to $18.69 per hour for most employers. Washington House . Y@FLc)uy c? The new state minimum wage for 2023 is $15.74 an hour. Employment Standards message: 2023 salary thresholds set for overtime exempt employees. 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 state of Washington has announced increases in the minimum wage rate and the exempt salary thresholds for employees, effective January 1, 2023. The service requires full JavaScript support in order to view this website. 2023-1 providing guidance on wage and hour topics related to employees who, Accident prevention is a journey, not a destination. Departments must monitor employee work location to ensure the pay rate is correct and make necessary adjustments. For large businesses (51 or more non-exempt WA . 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. Pacific Lutheran University, B.S. 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). 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 governor-appointed Ombudsman would be an advocate for injured workers by accepting, investigating, and attempting to resolve complaints related to workers compensation. 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. The Temporary Employment and Student Employment Classification/Compensation Plansareavailable on theHRS website. Details are available on the Department of Labor and Industries (L&I) Washington minimum wage webpage. 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. 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. The salary threshold under federal law is only $684 per week, so employers in Washington must pay at the higher state level. 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. Employees aged 14 to 15 years old must earn at least $13.38 per hour in 2023. 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. Using the 2023 minimum wage starting January 1, 2023, L&I calculated . 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). Many states have their own salary and duties tests for determining whether an employee is exempt from overtime under state rules. Breaking the Link New Developments on U.S. Their current minimum wage is $17.54 per hour. Given the steep increase in the minimum wage, the states salary requirements for exempt employees are also increasing significantly. If you have questions about which rates apply to your employees or whether they are exempt, contact your Vigilant Law Group employment attorney. 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.