washington state exempt salary threshold 2023 washington state exempt salary threshold 2023

Locking Tik Tok? As a result, professional staff, contract covered staff, and classified non-union overtime positions that do not meet . 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. 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. 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. Recent CFPB Actions Focus on Protecting Military Families, New and Updated Guidance on the Scope of the UK Plastic Packaging Tax. 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. In other cases, employers may need to increase salaries for exempt employees. Washington's minimum wage is $14.49 per hour, up from $13.69 per hour in 2021. The new state minimum wage for 2023 is $15.74 an hour. 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. 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. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal threshold. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. The state of Washington minimum wage will increase from to$14.49 to $15.74 per hour on January 1, 2023. The Washington State Department of Labor & Industries (L&I) determines minimum thresholds using a multiplier of the state minimum wage. If you have questions about which rates apply to your employees or whether they are exempt, contact your Vigilant Law Group employment attorney. When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. 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). 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. 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. Six states increased the minimum salary requirement for overtime exemption on January 1, 2023. The following is a comprehensive list of the exempt status salary threshold by state. The Washington State minimum wage increases Saturday, reflecting inflation over the past year. 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. New salary threshold implementation schedule, Threshold phase-in schedule for computer professionals paid hourly. 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. 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. Employers may want to consult legal counsel about how this rule may impact them. 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. Federally Recognized Holidays, Employer Considerations for DOLs New AEWR Rule. 2023 Exempt Status Salary Threshold by City and State . We cannot become your lawyers or represent you in any way unless (1) we know that doing so would not create a conflict of interest with any of the clients we represent, and (2) satisfactory arrangements have been made with us for representation. Expanding Regulatory Reach over Intermediaries That May Constitute How to Value Digital Assets for Donation to Charity. The new hourly minimum, which applies to employees 16 years and older, will increase 80 cents per. 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. In Washington, employees must satisfy certain salary and duties tests to be classified as exempt from overtime under state law. 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%. See L&Is Administrative Policy ES.A.9.6 (Exemption from Minimum Wage Act Requirements for Computer Professional Employees). 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. Remember that employees must be paid at the highest minimum wage rate that applies to them. This is true in certain other states as well, some of which will have a new minimum wage in 2023. This means an employee exempt from overtime pay must earn at least $1,101.80 a week or $57,293.60 a year. In general, these workers must be salaried and paid a minimum specified salary level, and must primarily perform executive, administrative, professional, outside sales or computer professional duties as defined by state regulations. 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. 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. Exempt computer professionals who are paid on an hourly versus salary basis must earn at least $55.09 per hour (3.5 times the minimum wage). . Large employers (fifty-one or more employees) must pay exempt employees at least two times the minimum wage to meet the minimum salary requirements. 2023-1 providing guidance on wage and hour topics related to employees who, Accident prevention is a journey, not a destination. The L&I salary threshold will change annually through 2028. 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. 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. 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. 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. 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). Mar 02, 2023 The Future of Stablecoins, Crypto Staking and Custody of Digital White House Climate and Environmental Justice Screening Tool. 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. 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. Effective January 1, 2023, civil service employees at these impacted salary ranges and step will be adjusted to minimum wage. Washington House . Pacific Lutheran University, B.S. DC Circuit to Disputes Ancillary to Patent Matters: You Cant Sit Consumer Fraud PFAS Cases Continue To Rise. The exact threshold depends on the employer's size: For employers with 1-50 employees, the threshold salary level will be 1.75 times the state minimum wage. 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. 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. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. For a helpful chart, see L&Is salary implementation threshold schedule. The Health AI Frontier: New Opportunities for Innovation Across the FTC to Hold Workshop on Recyclable Claims. This change will impact student and non-student hourly employees, state work study rates and some civil service employees. If you have any questions regarding this change, please see the FAQ document or discuss them with your departments HR administrator. Employees whose primary duty is teaching, instructing, or lecturing to impart knowledge are not eligible for overtime and this change does not impact them. $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). This information is not legal advice. The Supreme Court Grants Petition to Decide Constitutionality of CFPB Understanding Your Law Firms Value Proposition, Spike in Migrants Crossing U.S.-Canada Border Raising Concerns, Bill to Amend the Gramm-Leach-Bliley Act Introduced to Congress, Energy & Sustainability Washington Update March 2023. The National Law Review is a free to use, no-log in database of legal and business articles. 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. For the outside sales employee exemption, there is no minimum salary requirement. 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. Please enable JavaScript on your browser and try again. The rate changes in 2024 as employers with 1-50 employees increase at least 2X the minimum wage. Starting Monday, December 26, 2022, they will need to track the hours that they work following the established time tracking procedure in their department. 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 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). Some states also bumped their exempt . The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements. 1/1/2023 . Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. Free Speech Shines Bright, Illuminates Patent Owners Right to Allege California Supreme Court to Address Rounding of Employee Time. 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). Please contact your HRS Service Team if you have any questions. Here are some key things to know for both federal exemptions and state exemptions, along with some state-specific changes for 2023. A new 2023 version of the required workplace poster is available online. To qualify for the administrative, professional and executive exemptions in California, employees must meet certain salary and duties tests and must be paid at least twice the state minimum hourly wage based on a 40-hour week. Litigation Setback for Employers Under Illinois Biometric Information Senate Committee Holds Hearing on Future of Low Carbon Transportation North Carolina Senate Passes Compassionate Care Act at Exactly 4:20 States and Feds Signal Big Changes to Telehealth Prescribing. Important information for employers is also available via the firms webinar and podcast programs. For example: relocation pay. 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. BY 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. Mr. Pankratz has experience successfully representing employers in executive termination, non-compete and unfair competition disputes. Seattle and SeaTac require a higher minimum wage rate for employees working within city limits (see below). Other factors will have an impactChanges in Washingtons minimum wage are now calculated each year. Our employment attorneys and workplace safety experts will take a look at your question and possibly select it for our next post. While written notice of these pay increases isnt required except for Seattle employees, advance written notice is certainly a best practice for employee retention and morale. Managers will need to assess staffing patterns and design the work to balance resources and overtime. 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved. However, if paid by the hour, the minimum hourly rate for 2022 for computer professionals is $50.72 per hour. Public input during the rulemaking processL&I updated the overtime rules through a rulemaking process that began in March 2018. 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 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. University of Washington School of Law, J.D. The Washington State minimum wage will see a steep increase in 2023, due to the 8.6% rate of inflation. Watch future newsletters for an update on the increased rate for 2023. These increases impact several state wage requirements that youll want to be aware of if you have employees in Washington. 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).