How you can stay informedCheck out the overtime rules fact sheet. 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. 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. 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. These increases impact several state wage requirements that youll want to be aware of if you have employees in Washington. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. Justice and Commerce Departments Announce Creation of Disruptive United States Department of Justice (DOJ), Biden Executive Order 14091 Strengthens Equity for Federal Agencies. BY Please understand that merely contacting us does not create an attorney-client relationship. 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 . The U.S. Department of Labor in September 2019 updated the federal overtime rules regarding executive, administrative, and professional workers. For 2022, the wage for 14 and 15 year olds will be $12.32 per hour. If other salary changes are needed, departments should process those actions in accordance withuniversity policies. 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. US Executive Branch Update March 2, 2023. Accepting Cryptocurrency and Digital Asset Donations: What Charities Need to Know. 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. AG Clamps Down on Local Solar and Battery Storage Moratoria. Under state law, 14 and 15-year-olds can be paid 85% which will be $13.38 in 2023. HR will reclassify those employees as "nonexempt" on January 1, 2023. 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. 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). g The governor-appointed Ombudsman would be an advocate for injured workers by accepting, investigating, and attempting to resolve complaints related to workers compensation. This is a 5.83 percent increase from the current 2021 minimum wage of $13.69 per hour. 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. The 2023 threshold of $65,484 will be approximately 24.1% higher than the 2022 threshold. State Developments, Wage and Hour, Washington. HR will provide more information in the coming days, including supervisor guidance and direct communications to staff colleagues directly impacted. In many cases, the state criteria are harder to meet than the federal criteria. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal threshold. 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. "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. Washington Visit Here. Mr. Pankratz has extensive experience representing employers both locally and nationally on various employment Brenda Bannon is of counsel in the Seattle office of Ogletree Deakins and joined the firm in March 2019. On December 31, 2022, the minimum wage increased in areas other than New York City and Nassau, Suffolk, and Westchester Counties. 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). National Law Review, Volume XII, Number 277, Public Services, Infrastructure, Transportation. Note: In Colorado, an exempt employees salary generally must also be sufficient to satisfy the minimum wage for all hours worked in a workweek. Recent CFPB Actions Focus on Protecting Military Families, New and Updated Guidance on the Scope of the UK Plastic Packaging Tax. 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. 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 . 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C. The effective date for the changes was July 1, 2020. She has successfully defended cases before the United States Court of Appeals for the Ninth Circuit and the Washington State Court of Appeals. A new 2023 version of the required workplace poster is available online. In other cases, employers may need to increase salaries for exempt employees. Good News for American Businesses: H1-B Denial Rates Plummet Under USCIS Extends Comment Period for Proposed Fee Increases, OFCCP Rescinds Trump-Era Religious Exemption Rule. The following is a comprehensive list of the exempt status salary threshold by state. The list does not include the city/county thresholds for California. In Washington, employees must satisfy certain salary and duties tests to be classified as exempt from overtime under state law. 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. Employers may want to consult legal counsel about how this rule may impact them. 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. 2023 Exempt Status Salary Threshold by City and State. 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. 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. 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? 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. 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). Using the 2023 minimum wage starting January 1, 2023, L&I calculated . Free Speech Shines Bright, Illuminates Patent Owners Right to Allege California Supreme Court to Address Rounding of Employee Time. Given the steep increase in the minimum wage, the states salary requirements for exempt employees are also increasing significantly. Two local jurisdictions have higher minimum wages and different labor rules than Washington State. The Washington State Labor and Industries (L&I) announced the minimum salary an employee must earn to be exempt from overtime. 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. Its Here The New National Cybersecurity Strategy. The state anticipates that by 2028, nearly 260,000 positions that were previously exempt under the Minimum Wage Act will be impacted. 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. Can Nonprecedential Decisions Be Relied Upon? An explanation of this requirement and a sample notice form can be found on Seattles wage theft ordinance webpage. Exempt computer professionals: The minimum salary rate for exempt computer professionals who are paid hourly will also increase as of January 1, 2023. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. The hearings were held in July and August 2019 in Tumwater, Seattle, Bellingham, Ellensburg, Kennewick, Spokane and Vancouver. 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 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. 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 content and links on www.NatLawReview.comare intended for general information purposes only. 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. Computer software employees may be paid on an hourly or a salary basis in order to qualify for exemption from California's overtime requirements. BREAKING DOWN THE PRIVACY ACT REVIEW REPORT #3: Removal of The Small White House Releases National Cybersecurity Strategy, Illinois High Court Rules Per-Scan Damages Can Be Awarded Under BIPA, Grassley-Wyden Bill Aims to Fix Broken Tax Whistleblower Law, Lessons Learned From 2022s Trade Secret Verdicts, Mass. If you have questions about which rates apply to your employees or whether they are exempt, contact your Vigilant Law Group employment attorney. STATE does not have a highly compensated employee exemption. The Temporary Employment and Student Employment Classification/Compensation Plansareavailable on theHRS website. The public submitted almost 2,300 comments by email, fax, and mail, and 182 people testified during public hearings during this process. White House Reviewing Proposed Regulations on Reinstated Superfund You Dont Need a Machine to Predict What the FTC Might Do About Is It Compensable? How Modern Manufacturing Plants Can Protect Against Ransomware, FTC Will Host May 23, 2023, Workshop on Recyclable Claims and the Appellate Court Affirmed An Order Denying A Beneficiarys Request For An Overview of Why Class Action Privacy Lawsuits May Have Just Gotten Gold Dome Report Legislative Day 26 (2023). Departments must monitor employee work location to ensure the pay rate is correct and make necessary adjustments. Beginning January 1, 2023, these employees must earn at least: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. Washington House . 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. These laws require the university to provide overtime pay to employees for any work hours exceeding 40 hours in a given workweek unless that employee is exempt from these laws. Especially in changing times, thank you so much for your hard work and all you do for Seattle University and our campus community. The following is a comprehensive list of the exempt status salary threshold by state. Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. 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. Starting January 1, 2022, the Washington state minimum wage will be $14.49 per hour. 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. 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. 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. Effective Jan. 1, 2020, the federal minimum salary threshold increased to $684 a week. Note: The minimum salary threshold does not apply bona fide teachers exempted under the Professional Exemption. 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 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. This is true in certain other states as well, some of which will have a new minimum wage in 2023. Remember that employees must be paid at the highest minimum wage rate that applies to them. Washington employers should begin following the new Washington rules because the state threshold will become more favorable to employees at $821.40 a week (1.5x the state minimum wage) for small businesses and approximately $958.30 per week (1.75x the state . To be considered "exempt," these employees must generally satisfy three tests: Note: There are also exemptions for outside sales and computer professional employees. Please enable cookies on your browser and try again. www.grsm.com is using a security service for protection against online attacks. For additional information, visit Washington State Department of Labor and Industries Changes to Overtime Rules website and the Salary Threshold Implementation Schedule. 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. 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). 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). Cities are allowed to set higher minimum wages. 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 . The state's minimum wage increased on January 1, 2023. Seattle's minimum wage for large employers will increase from $17 . The National Law Review is not a law firm nor is www.NatLawReview.com intended to be a referral service for attorneys and/or other professionals. Mr. Pankratz has experience successfully representing employers in executive termination, non-compete and unfair competition disputes. Locking Tik Tok? For additional information, please see the HR website: FLSA and WMWA overtime eligibility and exemption. 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. Large employers (fifty-one or more employees) must pay exempt employees at least two times the minimum wage to meet the minimum salary requirements. Critically, the "nonexempt" classification is not a reflection of the importance of a position. The overtime threshold . 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. Important information for employers is also available via the firms webinar and podcast programs. Part 1 training plans. 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]. Many states have their own salary and duties tests for determining whether an employee is exempt from overtime under state rules. The annually increasing salary thresholds specifically apply to the many university positions within the Executive, Administrative, and Professional exemptions. 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. Employees aged 14 to 15 years old must earn at least $13.38 per hour in 2023. However, if paid by the hour, the minimum hourly rate for 2022 for computer professionals is $50.72 per hour. Washington's overtime employment rules have changed. The Health AI Frontier: New Opportunities for Innovation Across the FTC to Hold Workshop on Recyclable Claims. On January 1, 2021, Washington's minimum wage will increase from $13.50 to $13.69. For example: relocation pay. 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. 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. www.grsm.com is using a security service for protection against online attacks. See new exemption . 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. Mar 02, 2023 You will be redirected once the validation is complete. Licenses for Exports to Are You Ready for the UPC? Here are some key things to know for both federal exemptions and state exemptions, along with some state-specific changes for 2023. Mar 02, 2023 This change will impact student and non-student hourly employees, state work study rates and some civil service employees. The new state minimum wage for 2023 is $15.74 an hour. In addition to the change in the minimum salary level, the new rules update the job duties tests. 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. The Washington State minimum wage increases Saturday, reflecting inflation over the past year. You can read theadopted rule language in Chapter 296-128 of the Washington Administrative Code. The Washington State Labor and Industries (L&I) announced the minimum salary an employee must earn to be exempt from overtime. The state of Washington has announced increases in the minimum wage rate and the exempt salary thresholds for employees, effective January 1, 2023. The Washington State Department of Labor & Industries (L&I) determines minimum thresholds using a multiplier of the state minimum wage. For small businesses (1-50 employees), an exempt employee must now earn a salary of at least 1.75 times the minimum wage, or $1,101.80/week. 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 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. Federally Recognized Holidays, Employer Considerations for DOLs New AEWR Rule. Please enable JavaScript on your browser and try again. Noncompete Agreements: Washington law prohibits noncompete agreements with employees who earn less than the states annual threshold. 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. 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. 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). Chris Edison. Y@FLc)uy c? This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements. The increases mandated by voter-approved Initiative 1433 stopped in 2020. Suggest a topic and we might discuss it in a future blog post. Using the 2023 minimum wage starting January 1, 2023, L&I calculated the salary thresholds for employers with 1-50 employees to be at least 1.75X the state minimum wage, or $1,101.80/week ($57,293 . 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. In addition, work volume is dependent on operational needs and work must be performed to meet those needs. 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved. Your assigned HRS representative will be in contact with you with additional information. See our Legal Guide, Noncompetition Agreements, for guidance on additional requirements in Washington. If you will be adjusting wages in light of the minimum wage increases, make sure you notify any affected workers. This process is automatic. $16.50 per hour (up from $15.75 per hour) for employees of smaller employers who receive medical benefits worth at least $2.19 per hour or earn at least that much per hour in tips. 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. 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. Employees aged 14 to 15 years old must earn at least $13.38 per hour in 2023. 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). 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. Due to an increase in the state's minimum wage, the minimum salary required for the administrative, professional and executive exemptions from overtime under state law increased to $796.17 per week on January 1, 2023.