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 Future of Stablecoins, Crypto Staking and Custody of Digital White House Climate and Environmental Justice Screening Tool. Departments that have employees physically working in these cities must ensure they are paid in accordance with the city minimum wage ordinance. 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). Starting January 1, 2022, the Washington state minimum wage will be $14.49 per hour. Two local jurisdictions have higher minimum wages and different labor rules than Washington State. Noncompete Agreements: Washington law prohibits noncompete agreements with employees who earn less than the states annual threshold. For 2022, the wage for 14 and 15 year olds will be $12.32 per hour. We need your faithful generosity to exceed $28,600,000 in . Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal threshold. 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 state anticipates that by 2028, nearly 260,000 positions that were previously exempt under the Minimum Wage Act will be impacted. Large employers (fifty-one or more employees) must pay exempt employees at least two times the minimum wage to meet the minimum salary requirements. 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). 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. Federal law establishes a minimum salary of $684 per week for the professional exemption. 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. When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. . 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. To be considered "exempt," these employees must generally satisfy three tests: Note: There are also exemptions for outside sales and computer professional employees. 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? Other factors will have an impactChanges in Washingtons minimum wage are now calculated each year. Computer software employees may be paid on an hourly or a salary basis in order to qualify for exemption from California's overtime requirements. House Energy & Commerce Subcommittee Holds Hearing on U.S. Hunton Andrews Kurths Privacy and Cybersecurity. Free Speech Shines Bright, Illuminates Patent Owners Right to Allege California Supreme Court to Address Rounding of Employee Time. Human Resources will provide training and share best practices to guide supervisors through the impact of these changes. 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 saying is often heard from Vigilants own Safety Manager, Manish Gooneratne. The National Law Review - National Law Forum LLC 3 Grant Square #141 Hinsdale, IL 60521 Telephone (708) 357-3317 ortollfree(877)357-3317. of Business Administration. HR will reclassify those employees as "nonexempt" on January 1, 2023. 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. 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 Washington State minimum wage increases Saturday, reflecting inflation over the past year. The Washington State minimum wage will see a steep increase in 2023, due to the 8.6% rate of inflation. Here are some key things to know for both federal exemptions and state exemptions, along with some state-specific changes for 2023. ~$65,478.40 (2 x Minimum Wage, Employers with 51 or more Employees). Departments do not need to take action for the minimum wage increase. Its Here The New National Cybersecurity Strategy. Employees whose primary duty is teaching, instructing, or lecturing to impart knowledge are not eligible for overtime and this change does not impact them. 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). Note: There is also a professional exemption under state law. Departments must monitor employee work location to ensure the pay rate is correct and make necessary adjustments. In addition to the change in the minimum salary level, the new rules update the job duties tests. 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. 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. The new state minimum wage for 2023 is $15.74 an hour. $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), ~$57,293.60 (1.75 x Minimum Wage, Employers with 1-50 Employees). (s#%=]XzqEh$P=%D&H.&Ab}d!,x\pK+!r dev"! The hearings were held in July and August 2019 in Tumwater, Seattle, Bellingham, Ellensburg, Kennewick, Spokane and Vancouver. Breaking the Link New Developments on U.S. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. 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. The state of Washington has announced increases in the minimum wage rate and the exempt salary thresholds for employees, effective January 1, 2023. On January 1, 2021, Washington's minimum wage will increase from $13.50 to $13.69. (1) $45,000 ($865.38/week) an exempt executive, administrative, or professional employee; (2) $101,250 for those who meet the duties-requirements for HCE employees. 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). Note: In Colorado, an exempt employees salary generally must also be sufficient to satisfy the minimum wage for all hours worked in a workweek. Please enable JavaScript on your browser and try again. 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. HR will provide more information in the coming days, including supervisor guidance and direct communications to staff colleagues directly impacted. Please understand that merely contacting us does not create an attorney-client relationship. Beginning January 1, 2023, these employees must earn at least: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. 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. 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. The increases mandated by voter-approved Initiative 1433 stopped in 2020. HRS will assist colleges/areas in evaluating the impact of these changes. Seattle and the City of SeaTac have minimum wage rates higher than the state minimum. New salary threshold implementation schedule, Threshold phase-in schedule for computer professionals paid hourly. These workers are typically "white collar" workers who often have more economic security and relative bargaining power than lower-wage workers. Federal updated its highly compensated employee salary threshold to $107,432/yr. Effective January 1, 2023, civil service employees at these impacted salary ranges and step will be adjusted to minimum wage. The effective date for the changes was July 1, 2020. For a helpful chart, see L&Is salary implementation threshold schedule. White House Reviewing Proposed Regulations on Reinstated Superfund You Dont Need a Machine to Predict What the FTC Might Do About Is It Compensable? HERE IT IS: The Czars HUGE Breakdown of the FCC NPRM is NOW Telehealth Update: DEA Issues Long-Awaited Proposed Rule on CFPB Provides Guidance on Auto Finance Data Pilot, Two Maui Men Sentenced for Racially Motivated Attack on White Man, US Executive Branch Update March 3, 2023, EPA Holds Third and Final TSCA Engineering Initiative Webinar. 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. L&I has created an online overtime resource center to assist employers in understanding these salary requirements, including charts, fact sheets, workshops, and webinars. 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. The Washington State Labor and Industries (L&I) announced the minimum salary an employee must earn to be exempt from overtime. 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. Justice Department Announces Application Form for Marijuana Pardon Certificates, HERE IT IS: The Czars HUGE Breakdown of the FCC NPRM is NOW AVAILABLE to Everyone. Use tab to navigate through the menu items. 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 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). 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. Governor Evers stated he would issue the order on Tuesday, March 24, 2020. The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. These increases impact several state wage requirements that youll want to be aware of if you have employees in Washington. The L&I salary threshold will change annually through 2028. The U.S. Department of Labor in September 2019 updated the federal overtime rules regarding executive, administrative, and professional workers. Their current minimum wage is $17.54 per hour. 2023 salary thresholds set for overtime exempt employees, Chapter 296-128 of the Washington Administrative Code. Accepting Cryptocurrency and Digital Asset Donations: What Charities Need to Know. Legislative Package Includes Bills to Advance Biofuels Research, PTO to Begin Issuing Electronic Patent Grants, OSHA to Expand the Use of Instance-by-Instance Penalties. Employers have several options to comply with the new federal and state salary thresholds: Reclassify exempt positions as hourly, non-exempt positions. Beginning January 1, 2022, the Washington State's minimum wage will be $14.49 per hour, increasing from the current minimum wage of $13.69 per hour. 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. Our employment attorneys and workplace safety experts will take a look at your question and possibly select it for our next post. Employees aged 14 to 15 years old must earn at least $13.38 per hour in 2023. In addition, work volume is dependent on operational needs and work must be performed to meet those needs. Employees aged 14 to 15 years must earn at least $13.38 per hour. Y321N-!s%/ 6aG3TbAx1}Net3BIYr[@KdqZ?w*. The Washington State Department of Labor & Industries (L&I) determines minimum thresholds using a multiplier of the state minimum wage. California Law May Limit Hospitals Ability to Adopt The Joint Ankura CTIX FLASH Update - February 28, 2023, Ankura Cyber Threat Investigations and Expert Services. 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. 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. Part 1 training plans. See our Legal Guide, Noncompetition Agreements, for guidance on additional requirements in Washington. www.grsm.com is using a security service for protection against online attacks. Especially in changing times, thank you so much for your hard work and all you do for Seattle University and our campus community. Colorado. 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.. 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. Because the salary. The service requires full JavaScript support in order to view this website. NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. For additional information, please see the HR website: FLSA and WMWA overtime eligibility and exemption. 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. You can read theadopted rule language in Chapter 296-128 of the Washington Administrative Code. Exempt computer professionals: The minimum salary rate for exempt computer professionals who are paid hourly will also increase as of January 1, 2023. 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). Washington House . As a result, professional staff, contract covered staff, and classified non-union overtime positions that do not meet . Learn how Vigilant membership can help with your complex employment situations. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. 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. 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. Before applying this information to a specific management decision, consult legal counsel. The changes update minimum salary level and job dutiesUnder the approved changes, the minimum pay a salaried worker must receive to be considered exempt would increase incrementally to 2.5 times the state minimum wage by 2028. 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). For additional information, visit Washington State Department of Labor and Industries Changes to Overtime Rules website and the Salary Threshold Implementation Schedule. 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. 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. Licenses for Exports to Are You Ready for the UPC? 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. The list includes some special districts in states but does not include all of said districts. This rate is subject to mandatory annual adjustments which are usually announced in October or early November. The change in the state minimum wage also increases the new state minimum salary thresholds for Overtime Exempt Employees. 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). Federally Recognized Holidays, Employer Considerations for DOLs New AEWR Rule. 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. Managers will need to assess staffing patterns and design the work to balance resources and overtime. 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. Tips: The minimum wage rates in both Seattle and SeaTac continue to be higher than the statewide rate in Washington. This means, for example, that a 50% (half-time) employee whose annualized salary is $120,000 would be overtime eligible because their actual, half-time salary would be $60,000, which is less than the new $65,484 threshold. The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements. 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). Attorney Advertising Notice: Prior results do not guarantee a similar outcome. 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. All our faculty and staff, regardless of whether they are exempt or nonexempt, perform important work in support of our mission. For additional information, you can contact L&I's Employment Standards program atEAPrules@Lni.wa.gov or 1-866-219-7321. 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). "It Ain't Over 'Til It's Over" - Use Of A PTO Introduces Trademark Decisions and Proceedings Search Tool, FDA Issues Draft Guidance on Labeling of Plant-Based Milk Alternatives, Government Wins $43 Million Verdict in False Claims Act Case, BETO Will Host March 23 Listening Session on Next Billion-Ton Report. Mr. Pankratz represents corporations and management in a myriad of employment-related and complex commercial matters, including litigation involving discrimination, retaliation, harassment, wage and hour, wrongful termination, ADA and FMLA leave issues, and other matters in state and federal courts and administrative agencies. The content and links on www.NatLawReview.comare intended for general information purposes only. Under state law, 14 and 15-year-olds can be paid 85% which will be $13.38 in 2023. 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. Large employers (fifty-one or more employees) must pay exempt employees at least two times the minimum wage to meet the minimum salary requirements. This is a 5.83 percent increase from the current 2021 minimum wage of $13.69 per hour. National Law Review, Volume XII, Number 277, Public Services, Infrastructure, Transportation. Justice and Commerce Departments Announce Creation of Disruptive United States Department of Justice (DOJ), Biden Executive Order 14091 Strengthens Equity for Federal Agencies. This means that the universitys Executive, Administrative or Professional staff members who earn less than $65,478.40 as of January 1, 2023along with tens of thousands of similarly situated employees across the statewill no longer be exempt. HR will reclassify those employees as nonexempt on January 1, 2023. 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. Waters of the United States and Winston Churchill. 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. For more information on overtime exemptions in Washington, see our Legal Guide, State Laws on the White Collar Exemption from Overtime. 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. 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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. STATE does not have a highly compensated employee exemption. 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. How you can stay informedCheck out the overtime rules fact sheet. 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved. Dirty Steel-Toe Boots, Episode 16: Investigations and the OSH Acts DOE Issues FOA for Carbon Capture Large-Scale Pilots and Carbon A Forward Look at IRAs Sweeping Impact on the EV Sector [PODCAST]. 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. Details are available on the Department of Labor and Industries (L&I) Washington minimum wage webpage. Note: The minimum salary threshold does not apply bona fide teachers exempted under the Professional Exemption. 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. 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. 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. 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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. Suggest a topic and we might discuss it in a future blog post. The new hourly minimum, which applies to employees 16 years and older, will increase 80 cents per. 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. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor. Mar 02, 2023 www.grsm.com is using a security service for protection against online attacks. The city hasnt yet announced the 2023 rate for those employees. If you have questions about which rates apply to your employees or whether they are exempt, contact your Vigilant Law Group employment attorney. The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. As a result, employers must pay a salary of at least $1,240 per week beginning January 1, 2023 to qualify for the exemption.