This website presents general information in nontechnical language. HR will reclassify those employees as "nonexempt" on January 1, 2023. If you will be adjusting wages in light of the minimum wage increases, make sure you notify any affected workers. 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. 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). No attorney-client or confidential relationship is formed by the transmission of information between you and the National Law Review website or any of the law firms, attorneys or other professionals or organizations who include content on the National Law Review website. Exempt computer professionals may be paid based on either the exempt salary threshold ($52,743.60 annually for 2022) or by the hour. Washington Sets New Minimum Wage, Overtime Exempt Threshold - LinkedIn 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 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. 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. Accepting Cryptocurrency and Digital Asset Donations: What Charities Need to Know. The new state minimum wage for 2023 is $15.74 an hour. 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 . 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. As a result of a new state minimum wage, the salary thresholds used to determine which workers are exempt from overtime under state law also increased effective January 1, 2023: Note: Employers of any size may pay exempt computer professionals by the hour, provided they pay at least 3.5 times the minimum wage ($55.09 per hour in 2023). To be considered "exempt," these employees must generally satisfy three tests: Note: There are also exemptions for outside sales and computer professional employees. Justice and Commerce Departments Announce Creation of Disruptive United States Department of Justice (DOJ), Biden Executive Order 14091 Strengthens Equity for Federal Agencies. The Washington State Labor and Industries (L&I) announced the minimum salary an employee must earn to be exempt from overtime. Washington Visit Here. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. Under certain state laws the following statements may be required on this website and we have included them in order to be in full compliance with these rules. 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. 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. Due to the monthly base pay model at the UW requiring rounding up to a whole dollar amount, the UWs monthly and annualized thresholds are slightly higher than the states weekly threshold as shown in the table below: L&I Salary Threshold effective Jan 1, 2023. Our employment attorneys and workplace safety experts will take a look at your question and possibly select it for our next post. www.grsm.com is using a security service for protection against online attacks. It will continue to increase annually thereafter based on inflation. The overtime threshold . 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. HR will provide more information in the coming days, including supervisor guidance and direct communications to staff colleagues directly impacted. 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. 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). This rate is subject to mandatory annual adjustments which are usually announced in October or early November. Europe: Is Eltif 2.0 a More Viable Structure for Long-Term Investment in the EU? 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. The federal Fair Labor Standards Act (FLSA) requires that employers pay most employees at least the federal minimum wage for each hour worked as well as overtime pay for all hours worked in excess of 40 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. Federally Recognized Holidays, Employer Considerations for DOLs New AEWR Rule. 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. Employers Beware: Non-Disparagement and Confidentiality Covenants in Consultation Paper On Review of Corporate Governance Norms For A High Californias War On The Fast-Food Industry Continues. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. 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. As EPA continues to move toward identifying PFAS as Hazardous Is an OSHA Workplace Violence Standard for the Healthcare Industry on Yellen Calls on World Bank to Take Decisive Action on Climate Change, To Volunteer or Not: The Role of Community Association Board Members. The new hourly minimum, which applies to employees 16 years and older, will increase 80 cents per. PDF Salary threshold implementation schedule - Washington State Department See new exemption . Effective January 1, 2023, civil service employees at these impacted salary ranges and step will be adjusted to minimum wage. Washington State 2023 Employment Law Update Remember that employees must be paid at the highest minimum wage rate that applies to them. GT's The Performance Review Episode 19: Is the Fight Over AB 51 5 Reasons Community Associations Need an Attorney That Specializes in New York Proposes Regulatory Review and Approval of Material Health CMS Issues Long-Awaiting Medicare Advantage RADV Final Rule, Preventing the Use of Cryptocurrencies to Evade Sanctions. Seattles minimum wage rates apply to all nonexempt employees for all hours they work within the city limits. The increases mandated by voter-approved Initiative 1433 stopped in 2020. 2023 Exempt Status Salary Threshold by City and State . This is true in certain other states as well, some of which will have a new minimum wage in 2023. Ms. Bannons practice has emphasized the defense of municipal and other governmental clients in state and federal court litigation, in addition to providing routine employment law advice and counsel to local agencies Human Resources professionals. The cities of Seattle and SeaTac also have higher minimum wage requirements that are increasing in 2023. Her practice extends to private sector clients. Y@FLc)uy c? Small employers (1-50 employees) will have to pay at least 1.75 times the state minimum wage ($1,101.80 a week), and large employers (51 or more employees) will pay at least 2 times the minimum wage ($1,259.20 a week). Supreme Court Clarifies the Meaning Salary Basis Under Federal OIRA Calls for Feedback on Recommendations to Encourage More FTCs One-Two Punch on Data Tracking and Health Privacy. State Developments, Wage and Hour, Washington. The Health AI Frontier: New Opportunities for Innovation Across the FTC to Hold Workshop on Recyclable Claims. HRS will assist colleges/areas in evaluating the impact of these changes. If you would ike to contact us via email please click here. SeaTac minimum wage: The City of SeaTac also maintains its own minimum wage rate covering certain transportation and hospitality employees working within the city. The annualized L&I threshold for 2022 is $52,752. Before applying this information to a specific management decision, consult legal counsel. 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%. 2023 Exempt Salary Thresholds and Minimum Wages 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. 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. Critically, the "nonexempt" classification is not a reflection of the importance of a position. L&I has created an online overtime resource center to assist employers in understanding these salary requirements, including charts, fact sheets, workshops, and webinars. Significant Increases in Washington Minimum Wage and Exempt Salary Its Here The New National Cybersecurity Strategy. Each September, L&I uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (referred to as CPI-W) from the U.S. Bureau of Labor Statistics to determine the minimum wage for the following year. Thank you for suggesting a question for our next Q&A post! Employers seeking to classify employees as exempt from overtime should ensure employees meet both federal and state exemption criteria. In addition to the change in the minimum salary level, the new rules update the job duties tests. 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). 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C. Minimum Wage (2022) In keeping with the gradual increase in the State's minimum wage levels, the new tiered rates across the State, effective December 31, 2021, are listed below. For example: relocation pay. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. 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. 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). 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 . 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. Washington State Announces Minimum Wage Rate The 2023 threshold of $65,484 will be approximately 24.1% higher than the 2022 threshold. On March 28, 2020, the U.S. Department of Labors (DOL) Wage and Hour Division released an updated set of Questions and Answers (Q&As) that provide additional guidance concerning health care providers and emergency responders (question numbers 55, 56, and 57). This same threshold applies to part-time employees; it is not pro-rated for employees who are less than full-time. DOL Is Reviewing Overtime Rule - SHRM The Washington State Department of Labor & Industries (L&I) determines minimum thresholds using a multiplier of the state minimum wage. 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. 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 Emergency Family and Medical Leave Expansion Act (EMFLEA) and the Emergency Paid Sick Leave Act (EPSLA) authorize the DOL to issue regulations to exempt health care providers and emergency responders from eligibility for coverage under the FFCRA. Recent CFPB Actions Focus on Protecting Military Families, New and Updated Guidance on the Scope of the UK Plastic Packaging Tax. In many cases, the state criteria are harder to meet than the federal criteria. Visas for F and M Students Can Now Be Issued 365 Days Ahead of Program Start Date. This approach follows the principle of law that in the event of a conflict between state and federal law, the law more protective of the employee will apply. Employees aged 14 to 15 years old must earn at least $13.38 per hour in 2023. The U.S. Department of Labor in September 2019 updated the federal overtime rules regarding executive, administrative, and professional workers.