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. 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. The rate changes in 2024 as employers with 1-50 employees increase at least 2X the minimum wage. 1/1/2023 . 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. When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. 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. The 2023 minimum wage rate in Washington State will increase to $15.74 per hour for employees sixteen years of age and older, the Washington State Department of Labor & Industries announced on September 30, 2022. Given the steep increase in the minimum wage, the states salary requirements for exempt employees are also increasing significantly. Confidentiality and Non-Disparagement Agreements with Non-Supervisory USCIS Confirms It Will Accept Employment-Based I-485 Applications New Jersey Enacts Bill of Rights for Temporary Workers, DOJ Implements Nationwide Voluntary Self-Disclosure Program. (s#%=]XzqEh$P=%D&H.&Ab}d!,x\pK+!r dev"! 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. 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. The National Law Review - National Law Forum LLC 3 Grant Square #141 Hinsdale, IL 60521 Telephone (708) 357-3317 ortollfree(877)357-3317. DC Circuit to Disputes Ancillary to Patent Matters: You Cant Sit Consumer Fraud PFAS Cases Continue To Rise. 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. Cities are allowed to set higher minimum wages. We need your faithful generosity to exceed $28,600,000 in . 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%. For the outside sales employee exemption, there is no minimum salary requirement. If you will be adjusting wages in light of the minimum wage increases, make sure you notify any affected workers. Michigan PFAS Challenge Arguments Briefed For The Court. 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. This is true in certain other states as well, some of which will have a new minimum wage in 2023. Washington State Announces Minimum Wage Rate See our Legal Guide, Noncompetition Agreements, for guidance on additional requirements in Washington. White House Requires Removal of TikTok App from FDA Withdraws Proposed Rule on General Principles for Food Standards New FAQs Dramatically Expand Scope of California Labor Contractor Today is the Day Dont Miss the Employer Deadline to Report to OSHA, PTO Seeks Comments on Role of Artificial Intelligence in Inventorship. Washington State Overtime Salary Thresholds to Go Up in 2020 (and Up The state of Washington minimum wage will increase from to$14.49 to $15.74 per hour on January 1, 2023. The cities of Seattle and SeaTac also have higher minimum wage requirements that are increasing in 2023. 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. 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. 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. 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. 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). 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. This saying is often heard from Vigilants own Safety Manager, Manish Gooneratne. 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. 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. As a result, professional staff, contract covered staff, and classified non-union overtime positions that do not meet . This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. Colorado. 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. 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. PPTX Washington State Overtime exemption changes - 2021 Please contact your HRS Service Team if you have any questions. If you have any questions regarding this change, please see the FAQ document or discuss them with your departments HR administrator. Check outtheovertime rulemaking documents. 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. Washington House . 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. The Washington State minimum wage increases Saturday, reflecting inflation over the past year. PDF Salary Thresholds for Exemption from Minimum Wage Act for White-Collar Washington Sets New Minimum Wage and Overtime Exempt Threshold for 2023 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. The new state minimum wage for 2023 is $15.74 an hour. This is a 5.83 percent increase from the current 2021 minimum wage of $13.69 per hour. 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). US Executive Branch Update March 2, 2023. 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 . 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. Can Nonprecedential Decisions Be Relied Upon? 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. 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. Beginning January 1, 2023, these employees must earn at least: $53.80 per hour (for all hours worked); or A monthly salary of $9,338.78; and An annual salary of $112,065.20 Colorado: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. ~$65,478.40 (2 x Minimum Wage, Employers with 51 or more Employees). Noncompete Agreements: Washington law prohibits noncompete agreements with employees who earn less than the state's annual threshold. 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). Federally Recognized Holidays, Employer Considerations for DOLs New AEWR Rule. 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. Many states have their own salary and duties tests for determining whether an employee is exempt from overtime under state rules. Preparing for the 2023 Washington Salary Threshold Increase Remember that employees must be paid at the highest minimum wage rate that applies to them. 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). Washington State 2023 Employment Law Update Updated: Dec 13, 2022. . 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. If you have questions about which rates apply to your employees or whether they are exempt, contact your Vigilant Law Group employment attorney. 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. Thank you for suggesting a question for our next Q&A post! 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 State Minimum Wage and Salary Threshold Increase for 2023 Chris Edison. 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. 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. 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). A bill (S1982) introduced in the Senate on June 16 would create a Workers Compensation Ombudsman for Injured Workers. Use tab to navigate through the menu items. $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). Our faculty colleagues (and some staff members) whose primary duty is teaching, coaching, instructing, or lecturing are fully exempt from these laws regardless of their salary amount. The Washington state overtime threshold for exempt jobs as of January 1, 2021 is set by state rule at 1.75 times the state minimum wage and will be $958.38 per week. Are Your Pay Rates Compliant for 2020? - SHRM Seattle and SeaTac require a higher minimum wage rate for employees working within city limits (see below). 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. Important information for employers is also available via the firms webinar and podcast programs. See new exemption . NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. 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. Y@FLc)uy c? Washington Wage and Hour Developments for Q1 2022 - The National Law Review New salary threshold implementation schedule, Threshold phase-in schedule for computer professionals paid hourly. 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). 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. This change will impact student and non-student hourly employees, state work study rates and some civil service employees. Noncompete Agreements: Washington law prohibits noncompete agreements with employees who earn less than the states annual threshold. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor. PDF Salary threshold implementation schedule - Washington State Department The Washington State Department of Labor & Industries (L&I) determines minimum thresholds using a multiplier of the state minimum wage. National Law Review, Volume XII, Number 277, Public Services, Infrastructure, Transportation. House Energy & Commerce Subcommittee Holds Hearing on U.S. Hunton Andrews Kurths Privacy and Cybersecurity. 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. Critically, the "nonexempt" classification is not a reflection of the importance of a position. Mandatory Arbitration Agreements Remain Valid in California, Antitrust Practitioners Expect Activity With Climate Issues. Salary threshold implementation schedule Salary thresholds for overtime exempt workers are a multiplier of state minimum wage for a 40-hour workweek 2023 Salary thresholds When the rule takes effect July 1, 2020 Jan. 1, 2021 Jan. 1, 2022 Jan. 1, 2023 Jan. 1, 2024 Jan. 1, 2025 Jan. 1, 2026 Jan. 1, 2027 Jan. 1, 2028 For small employers with 1-50 . 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? 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. Expanding Regulatory Reach over Intermediaries That May Constitute How to Value Digital Assets for Donation to Charity. Ogletree, Deakins, Nash, Smoak & Stewart, P.C. 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. $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. Here are some key things to know for both federal exemptions and state exemptions, along with some state-specific changes for 2023. 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. This same threshold applies to part-time employees; it is not pro-rated for employees who are less than full-time.

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