Washington Sets New Minimum Wage and Overtime Exempt Threshold for 2023 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 . 2023 Exempt Status Salary Threshold by City and State . Check outtheovertime rulemaking documents. 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. New salary threshold implementation schedule, Threshold phase-in schedule for computer professionals paid hourly. 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. 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. For additional information, visit Washington State Department of Labor and Industries Changes to Overtime Rules website and the Salary Threshold Implementation Schedule. 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. 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. Washington State Announces 2023 Minimum Wage Rate and Salary Thresholds PPTX Washington State Overtime exemption changes - 2021 Federal law allows us to use to calculate salary threshold. The salary rates may vary depending on the city/county where an employee resides/works in California. 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. In many cases, the state criteria are harder to meet than the federal criteria. Expanding Regulatory Reach over Intermediaries That May Constitute How to Value Digital Assets for Donation to Charity. $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). The rate changes in 2024 as employers with 1-50 employees increase at least 2X the minimum wage. Small employers (with 1-50 employees) will have a more gradual phase-in schedule to give them additional time to comply with the new rules compared to large companies (51 or more employees). If you would ike to contact us via email please click here. 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 . Please understand that merely contacting us does not create an attorney-client relationship. Federal updated its highly compensated employee salary threshold to $107,432/yr. However, if paid by the hour, the minimum hourly rate for 2022 for computer professionals is $50.72 per hour. 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. These new Washington state laws go into effect in 2023 January 1, 2023 Employer with fifty or fewer employees - an amount not less than 1.75 times the state minimum wage prescribed in WA Statute 49.46.020 for a forty-hour workweek. ~$65,478.40 (2 x Minimum Wage, Employers with 51 or more Employees). 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. 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. Washington State Proposal Would Radically Increase Exempt Salary Threshold Washington state minimum wage to increase 80 cents Saturday 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. 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. 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. Washington State Announces 2023 Minimum Wage Rate And Salary Thresholds 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). 2023 salary thresholds set for overtime exempt employees, Chapter 296-128 of the Washington Administrative Code. This rate is subject to mandatory annual adjustments which are usually announced in October or early November. NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. 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. of Business Administration. 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. On January 1, 2021, Washington's minimum wage will increase from $13.50 to $13.69. She has successfully defended cases before the United States Court of Appeals for the Ninth Circuit and the Washington State Court of Appeals. 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. Thank you for suggesting a question for our next Q&A post! For 2022, the wage for 14 and 15 year olds will be $12.32 per hour. Are Your Pay Rates Compliant for 2020? - SHRM The Health AI Frontier: New Opportunities for Innovation Across the FTC to Hold Workshop on Recyclable Claims. Washington Wage and Hour Developments for Q1 2022 - The National Law Review These changes affect executive, administrative, and professional (EAP) workers as well as outside salespeople and computer professionals across all industries in Washington. Use tab to navigate through the menu items. Vice President for Human ResourcesSU People and Culture Strategies, By using our website, you agree to our cookie policy, Skip to Apply, Request Info, Jobs, Contact links, Institute for Catholic Thought and Culture, Center for Ecumenical and Interreligious Engagement, Washington State 2023 Salary Threshold Change. State DOES NOT count nondiscretionary bonuses, incentive payments and commissions payments toward salary threshold. 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 . 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. 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. The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. Watch future newsletters for an update on the increased rate for 2023. 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. This website presents general information in nontechnical language. Washington State Announces Minimum Wage Rate 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. Visas for F and M Students Can Now Be Issued 365 Days Ahead of Program Start Date. Here are some key things to know for both federal exemptions and state exemptions, along with some state-specific changes for 2023. 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 Temporary Employment and Student Employment Classification/Compensation Plansareavailable on theHRS website. Cities are allowed to set higher minimum wages. 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. 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. Some states also bumped their exempt . Given the steep increase in the minimum wage, the states salary requirements for exempt employees are also increasing significantly. Using the 2023 minimum wage starting January 1, 2023, L&I calculated . 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved. 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). 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: When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. Two local jurisdictions have higher minimum wages and different labor rules than Washington State. Public input during the rulemaking processL&I updated the overtime rules through a rulemaking process that began in March 2018. 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). 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.. 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. The Washington State Labor and Industries (L&I) announced the minimum salary an employee must earn to be exempt from overtime. Can Nonprecedential Decisions Be Relied Upon? 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. 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. Important information for employers is also available via the firms webinar and podcast programs. Keep in mind that reclassification means more than just . The National Law Review is a free to use, no-log in database of legal and business articles. 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). Departments do not need to take action for the minimum wage increase. Six states increased the minimum salary requirement for overtime exemption on January 1, 2023. WASHINGTON: Minimum wage and exempt salary increase in 2023 Updated: Dec 13, 2022. . The change in the state minimum wage also increases the new state minimum salary thresholds for Overtime Exempt Employees. 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. 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. 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. DOL Is Reviewing Overtime Rule - SHRM Federal law establishes a minimum salary of $684 per week for the professional exemption. EXPOSED: Does a New NCLC Ex Parte Filing Expose Their True Agenda to Little Weight Given to Conclusory Expert Declaration That Repeats IPR Department of Homeland Security Provides Information Related to EB-5 PTAB: Vidal Refocuses Guidance On Fintiv Factors And Discretionary Aluminum Is Now A Hot Topic In Supply Chain And Trade. 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. 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. Part 1 training plans. The Washington State Department of Labor & Industries (L&I) determines minimum thresholds using a multiplier of the state minimum wage. Justice and Commerce Departments Announce Creation of Disruptive United States Department of Justice (DOJ), Biden Executive Order 14091 Strengthens Equity for Federal Agencies. National Law Review, Volume XII, Number 277, Public Services, Infrastructure, Transportation. 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. 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. You will be redirected once the validation is complete. More information on the process and the civil service salary schedule will be available shortly. 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. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal threshold. 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. In addition, many of our staff colleagues perform duties that meet the laws exemptions for Executive, Administrative, or Professional positions. 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