For additional information, visit Washington State Department of Labor and Industries Changes to Overtime Rules website and the Salary Threshold Implementation Schedule. HRS will assist colleges/areas in evaluating the impact of these changes. New salary threshold implementation schedule, Threshold phase-in schedule for computer professionals paid hourly. 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. For large businesses (51 or more non-exempt WA . www.grsm.com is using a security service for protection against online attacks. 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. Departments must monitor employee work location to ensure the pay rate is correct and make necessary adjustments. Visas for F and M Students Can Now Be Issued 365 Days Ahead of Program Start Date. The Washington State Department of Labor & Industries (L&I) determines minimum thresholds using a multiplier of the state minimum wage. Federal updated its highly compensated employee salary threshold to $107,432/yr. 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. Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. 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. Rep. Mark Takano, D-Calif., led the questioning, noting that he sent a letter to encourage the DOL to adopt a salary threshold that by 2023 would be around $85,000 annually. 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 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). Effective Jan. 1, 2020, the federal minimum salary threshold increased to $684 a week. The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. 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. The list includes some special districts in states but does not include all of said districts. In other cases, employers may need to increase salaries for exempt employees. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. 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. Federally Recognized Holidays, Employer Considerations for DOLs New AEWR Rule. 2023-1 providing guidance on wage and hour topics related to employees who, Accident prevention is a journey, not a destination. 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. 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. Its Here The New National Cybersecurity Strategy. Many states have their own salary and duties tests for determining whether an employee is exempt from overtime under state rules. This website presents general information in nontechnical language. 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. Legislative Package Includes Bills to Advance Biofuels Research, PTO to Begin Issuing Electronic Patent Grants, OSHA to Expand the Use of Instance-by-Instance Penalties. The content and links on www.NatLawReview.comare intended for general information purposes only. 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. Free Speech Shines Bright, Illuminates Patent Owners Right to Allege California Supreme Court to Address Rounding of Employee Time. 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 city hasnt yet announced the 2023 rate for those employees. State salary threshold for overtime exemption and minimum wage update, Centers, Institutes, facilities, and capabilities, Office of Research Supported Centers and Laboratories, Research Services and Instrumentation Directory, Institutional Animal Care and Use Committee, University Use of Unmanned Aircraft Systems Research Activity, Faculty Resource Guide for Washington Public Records Requests, Regional Clean Hydrogen Hubs: Fueling the Clean Energy Future, Data Management and Sharing Guidance Home, ORSO Policy 35 principal investigator and co-investigator eligibility reminders, What you need to know about harassment, discrimination, and your funders, WSU hosts DARPA Forward conference on Pullman campus, Office of Research Reminder on Public Record Requests and Records Retention, Considerations for Effective International Scholar Visits, Registration open for Working with Industry 101 workshop, Reminders regarding required Responsible Conduct of Research CITI Training, Research Leadership Program prepares mid-career faculty for large multidisciplinary projects, Proposal opportunity: Urban Institutes Do No Harm Project, When to work with ORSO vs. other offices around WSU, Denise Keeton receives WSU Presidents Award for Health, CEREO appoints co-directors to lead the center, Office of Research to host sixth annual Research Week. 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. It will continue to increase annually thereafter based on inflation. 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. 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). 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. Please contact your HRS Service Team if you have any questions. The Future of Stablecoins, Crypto Staking and Custody of Digital White House Climate and Environmental Justice Screening Tool. Employees whose primary duty is teaching, instructing, or lecturing to impart knowledge are not eligible for overtime and this change does not impact them. 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. If you would ike to contact us via email please click here. 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. AG Clamps Down on Local Solar and Battery Storage Moratoria. Departments that have employees physically working in these cities must ensure they are paid in accordance with the city minimum wage ordinance. The Washington State Labor and Industries (L&I) announced the minimum salary an employee must earn to be exempt from overtime. Other factors will have an impactChanges in Washingtons minimum wage are now calculated each year. Starting January 1, 2022, the Washington state minimum wage will be $14.49 per hour. In many cases, the state criteria are harder to meet than the federal criteria. State Developments, Wage and Hour, Washington. HR will provide more information in the coming days, including supervisor guidance and direct communications to staff colleagues directly impacted. Federal law allows us to use to calculate salary threshold. 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. 1/1/2023 . Two local jurisdictions have higher minimum wages and different labor rules than Washington State. These changes affect executive, administrative, and professional (EAP) workers as well as outside salespeople and computer professionals across all industries in Washington. In addition to the change in the minimum salary level, the new rules update the job duties tests. Note: The minimum salary threshold does not apply bona fide teachers exempted under the Professional Exemption. 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). 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. 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 cities of Seattle and SeaTac also have higher minimum wage requirements that are increasing in 2023. 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. 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. 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. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. 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. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal threshold. Europe: Is Eltif 2.0 a More Viable Structure for Long-Term Investment in the EU? Y321N-!s%/ 6aG3TbAx1}Net3BIYr[@KdqZ?w*. Please enable JavaScript on your browser and try again. For employees working in Seattle and the City of SeaTac, the local minimum wage rate applies as long as it remains higher than the state minimum. On January 1, 2021, Washington's minimum wage will increase from $13.50 to $13.69. Pacific Lutheran University, B.S. Please enable cookies on your browser and try again. When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. The new hourly minimum, which applies to employees 16 years and older, will increase 80 cents per. The hearings were held in July and August 2019 in Tumwater, Seattle, Bellingham, Ellensburg, Kennewick, Spokane and Vancouver. Mr. Pankratz has experience successfully representing employers in executive termination, non-compete and unfair competition disputes. 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. Large employers (fifty-one or more employees) must pay exempt employees at least two times the minimum wage to meet the minimum salary requirements. University of Washington School of Law, J.D. The following is a comprehensive list of the exempt status salary threshold by state. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. The salary threshold under federal law is only $684 per week, so employers in Washington must pay at the higher state level. House Energy & Commerce Subcommittee Holds Hearing on U.S. Hunton Andrews Kurths Privacy and Cybersecurity. The Temporary Employment and Student Employment Classification/Compensation Plansareavailable on theHRS website. If you have any questions regarding this change, please see the FAQ document or discuss them with your departments HR administrator. Your assigned HRS representative will be in contact with you with additional information. The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. Important information for employers is also available via the firms webinar and podcast programs. 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. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor.