document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. As of today, that salary minimum is $684 per week ($35,568 per year); the agency is expected to seek an increase to $900-1000 per week, somewhere in the $50,000 per annum range. Effective January 1, 2021, the rule increases the minimum salary required for the executive, administrative, and professional exemptions under state law as follows: Employers with 50 or Fewer Employees: $821.40 per week. [CDATA[/* > -1) { personal information, including employees name, home address, occupation, sex, and birth date if under 19 years of age; total hours worked each workday and each workweek; total daily or weekly straight-time earnings; regular hourly pay rate for any week when overtime is worked; The Department is authorized to supervise the payment of unpaid minimum wages and/ or unpaid overtime compensation owed to any employee(s). Since state law is more favorable, employees who are currently exempt under FLSA may now be overtime eligible under state law requiring the employer to provide overtime pay to those employees. In general, hours worked includes all time an employee must be on duty, or on the employers premises or at any other prescribed place of work, from the beginning of the first principal activity of the work day to the end of the last principal work activity of the workday. HR professionalsmust knowhow to determine overtime eligibilityfor each employee. Need help with a specific HR issue like coronavirus or FLSA? This final rule went into effect January 1, 2020, and it remains in effect today. Minors 16 years and older may perform any job, whether hazardous or not, for unlimited hours; Minors 14 and 15 years old may perform any nonhazardous farm job outside of school hours; Minors 12 and 13 years old may work outside of school hours in nonhazardous jobs, either with a parents written consent or on the same farm as the parent(s); Minors under 12 years old may perform jobs on farms owned or operated by parent(s), or with a parents written consent, outside of school hours in nonhazardous jobs on farms not covered by minimum wage requirements. Employers are prohi-bited from taking any action to displace employees in order to hire employees at the youth minimum wage. ol{list-style-type: decimal;} @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} The .gov means its official. The California HR e-newsletter is a free monthly newsletter that provides the top California HR and employment law news, including updates on state and federal court decisions and analysis of state legislation and regulations. } Employers with fewer than 26 employees must pay a salary of at least $1,120 in 2022 to qualify for the exemption. RCW 49.46.010(3)(c). Additionally, 5 states are increasing the minimum salary requirement for overtime exemption on January 1, 2022. The new rate will take effect Jan. 1, 2020. These penalties may be increased for each violation that results in the death or serious injury of an employee who is a minor, and may be doubled if the violation was determined to be willful or repeated. It does not matter if the employee is working full-time or part-time. $11.00. Covered, nonexempt workers are entitled to a minimum wage of $7.25 per hour effective July 24, 2009. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. Employers who willfully or repeatedly violate minimum wage or overtime pay requirements are subject to civil money penalties for each violation. } Nonexempt employeesmust be paid time and a half for any hours worked more than 40 in a workweek. How do we perform a salary test for staff who work in cyclic-year positions? .table thead th {background-color:#f1f1f1;color:#222;} Consider the following: However, where employers already provide compensated breaks, an employee who uses that break time to express milk must be compensated in the same way that other employees are compensated for break time. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. In most circumstances, yes. Beginning January 1, 2022, these employees must earn at least: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. WAC 296-128-532. Special information is required for homeworkers, for employees working under uncommon pay arrangements, for employees to whom lodging or other facilities are furnished, and for employees receiving remedial education. All employees that hold positions determined to be covered under the mandatory overtime provisions of the FLSA are covered. The Department of Labor intends to propose updates to the salary threshold regularlyto ensure that these levels continue to provide useful tests for exemption. The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments. This salary threshold would not apply to individuals whose primary duty is teaching, and there are other specialized rules that apply in the higher education settings. If in the future the employer requires a furlough of less than one week, it will destroy the salary basis for that workweek if the employee performs work. The FLSA allows the Department of Labor (Department) or an employee to recover back wages and an equal amount in liquidated damages where minimum wage and overtime violations exist. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); The manufacture of womens apparel (and jewelry under hazardous conditions) is generally prohibited. Under the WMWA, the standard salary threshold is higher and more favorable to the worker. $('.container-footer').first().hide(); The following is a comprehensive list of the exempt status salary threshold by state. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { Minors 14 and 15 years old may work outside school hours in various nonmanufacturing, nonmining, nonhazardous jobs under the following conditions: no more than 3 hours on a school day, 18 hours in a school week, 8 hours on a non-school day, or 40 hours in a non-school week. This is a very fact specific question that should be asked of your assigned Labor and Personnel or Education Division AAG. The salary threshold required to exempt EAP employees from overtime protections under FLSA are different. Such employees include those who: work in communications or transportation; regularly use the mails, telephones, or telegraph for interstate communication, or keep records of interstate transactions; handle, ship, or receive goods moving in interstate commerce; regularly cross State lines in the course of employment; or work for independent employers who contract to do clerical, custodial, maintenance, or other work for firms engaged in interstate commerce or in the production of goods for interstate commerce. Generally, a 2-year statute of limitations applies to the recovery of back wages and liquidated damages. Federal law establishes a minimum salary of $684 per week for the professional exemption. Anyone who is involved in HR, supervises the HR function or otherwise has an interest in HR is } The Obama DOL wanted a raise to $913 per week, but a court enjoined that increase and so the salary was raised from $455 to $684 a week. 19. It is not enough to meet one test but not the other unless the claimed exemption is one for a professional whose duties alone make them exempt regardless of the salary paid or if other specific rules apply, such as in higher education (see #4 above and #1 Note). Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. Employees could switch from overtime eligible to overtime exempt once their salary exceeds the new salary threshold, provided employees duties also meet the WMWA exemption criteria. The employee is entitled to an additional one-half times this regular rate for each hour over 40, plus the salary. Coaches are exempt under the professional exemption, when their primary duty is teaching student athletes how to perform their sport. For employees with multiple appointment types with the same employer, it is sometimes unclear which position is their primary duty for purposes of determining exempt or nonexempt status. Agencies or higher education institutions should contact their assigned Labor and Personnel or Education Division AAG. Both federal law (Fair Labor Standards Act or FLSA) and state law (New York Minimum Wage Act and applicable regulations) generally require the payment of overtime wages for work performed after 40 hours per week. Nondiscretionary bonuses and incentive . What is the Fair Labor Standards Act? Example: An employee paid $8.00 an hour works 44 hours in a workweek. Note that there are special rules for tipped employees, who may be paid up to $3.00 per hour less than the minimum wage if the employee receives at least the minimum wage for all hours worked. For all hours worked in excess of 40 during each work week, employees will receive overtime at the rate of one and one-half times the employees regular rate (WAC 357-28-260). To request permission for specific items, click on the reuse permissions button on the page where you find the item. An employee whose primary duty is in an overtime eligible position will carry that eligibility over to the nonexempt assignment, while an employee whose primary duty is in an overtime exempt position can perform work that would be overtime eligible without losing the exemption. What is the salary requirement for part-time salaried workers? A new rate increase will be announced and be effective on July 1, 2022. The employee is entitled to at least one and one-half times $8.00, or $12.00, for each hour over 40. All employees of certain enterprises having workers engaged in interstate commerce, producing goods for interstate commerce, or handling, selling, or otherwise working on goods or materials that have been moved in or produced for such commerce by any person, are covered by the FLSA. 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. Will seasonal employees be held to the $49,831.60 annual threshold or the $958.30 per week threshold? It may begin on any day of the week and at any hour of the day established by the employer. Visit Here. 2022 Governor's proposed supplemental budget, 2021 Governor's proposed supplemental budget, 2020 Governor's proposed supplemental budget, 2023-25 operating and transportation budget instructions, 2021-23 operating, transportation and capital budget instructions, Fiscal impact of ballot measures & proposed legislation, 2021 general election ballot fiscal information, State Administrative & Accounting Manual (SAAM), Contact Facilities Oversight and Planning staff, Facilities Portfolio Management Tool (FPMT), Bill Enrollment and Agency Request System (BEARS), Results through Performance Management System (RPM), Fair Labor Standards Act (FLSA) & Washington Minimum Wage Act (WMWA), Washington Management Service (WMS) coordinator roles and meetings, Furlough and layoff information for employers, Workforce diversity, equity and inclusion. Workweek - A workweek is a period of 168 hours during 7 consecutive 24-hour periods. Under FLSA, the standard salary threshold is $684 per week or $35,568 per year. Overtime-eligible employees must be compensated with overtime pay or compensatory time for all hours worked over 40 in a single workweek. The new federal threshold, which took effect Jan. 1, 2020, is $684 a week ($35,568 a year). Youths 18 years or older may perform any job, whether hazardous or not, for unlimited hours; Minors 16 and 17 years old may perform any nonhazardous job, for unlimited hours; and. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { The new salary threshold is $958.30 per week meaning that if the position calls for the employee to work 40 weeks out of the year, then the ability to exempt the position from WMWA would depend on whether or not the employees weekly salary exceeds $958.30 per week. For that week only, the employee would be entitled to protections under the Minimum Wage Act, which would include payment for all time worked over 40. What if an employee takes LWOP and that brings them below the WMWA salary threshold? For represented positions, refer to the appropriate collective bargaining agreement to ensure required notifications occur when making changes to an employees overtime status. 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 3000 times the state minimum wage. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} Cook County: $13.00 per hour; $7.20 per hour for tipped employees, Portland: $13.00 per hour; $6.50 per hour for tipped employees, Montgomery County: $15.00 + CPI increase for large employers (51 or more employees) as of July 1, 2022; $14.50 for midsized employers (11 to 50 employees) as of July 1, 2022; $14.00 for small employers (10 or fewer employees) as of July 1, 2022, Minneapolis: As of July 1, 2022, $15.00 per hour (up from $14.25) for employers with 100 or more employees and $13.50 per hour (up from $12.50) for employers with fewer than 100 employees, Saint Paul: As of July 1, 2022, $15.00 per hour (up from $12.50) for employers with more than 10,001 employees, $13.50 per hour (up from $12.50) for employers with between 101 and 10,000 employees, $12.00 per hour (up from $11.00) for employers with between 6 and 100 employees, and $10.75 per hour (up from $10.00) for employers with 5 or fewer employees. In 2021, the salary threshold for overtime was $684 a week, or $35,568 per year. A coach will not qualify for the exemption if their primary duties are recruiting students to play sports or visiting high schools to conduct student interviews. Nondiscretionary bonuses and incentive payments (including commissions) paid on an annual or more frequent basis may be used to satisfy up to 10 percent of the standard salary level. Special rules apply to State and local government employment involving fire protection and law enforcement activities, volunteer services, and compensatory time off instead of cash overtime pay. While employers are not required under the FLSA to provide breaks to nursing mothers who are exempt from the overtime pay requirements of Section 7, they may be obligated to provide such breaks under State laws. Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Fair Labor Standards Act Effective Date of Policy: 03/01/2021 Next Scheduled Review: 04/01/2022 . The current minimum salary threshold sits at $35,568 annually, which was put into place at the start of 2020 following a lengthy process that began during the Obama administration. vacation, holiday, severance, or sick pay; meal or rest periods, holidays off, or vacations; a discharge notice, reason for discharge, or immediate payment of final wages to terminated employees. To be properly classified as "exempt" under the FLSA, an employee must satisfy both the salary and duties tests. A minimum wage of not less than $4.25 an hour is permitted for employees under 20 years of age during their first 90 consecutive calendar days of employment with an employer. In no case may the regular rate be less than the minimum wage required by the FLSA. To see minimum wage on a state-by-state basis, click here. 8. 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