Members may download one copy of our sample forms and templates for your personal use within your organization. PDF Detailed Look at State, Local and Federal Updates If the employees rate of pay increases, the increase must be reflected in the wage statement provided with their paycheck. State DOL Website 2022 Salary Threshold 2023 Change *Effective 1/1/2023 Last Updated Alabama Visit Here $35,568 (Current Federal) N/A 7/24/2009 Alaska Visit Here $43,014.40 $45,136 Pipeline Safety Act Preemption with Keith Coyle [Podcast], OFCCP Implements New Disability Self-Identification Form. ~$65,478.40 (2 x Minimum Wage, Employers with 51 or more Employees). This blog provides practical information on the subject matter. Employers Should Review Their Pay Practices for the New Year, New OSHA Guidance Clarifies Return-to-Work Expectations, Trump Suspends New H-1B Visas Through 2020, Faking COVID-19 Illness Can Have Serious Consequences, Ontario: Paid Infectious Disease Emergency Leave Has Ended. Other statesincluding Colorado, New . The minimum wage will be phased in to reach $15.00 for the following groups on the dates set forth below. On October 3, 2022, the threshold will increase to $875 per week or $45,500 annually. And $16.20 per hour for the remainder of New York State, effective December 31, 2022. A New York City employer must pay the New York City Large Employer rate the moment it employs 11 persons. Congress is considering the Raise the Wage Act, which would increase the federal pay floor to $15 an hour by 2025. Bronx, Queens, Richmond, Kings and New York counties are included in New York City. This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations. The state's minimum wage is scheduled to increase on January 1, 2022 and varies based on employer size. $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). .usa-footer .grid-container {padding-left: 30px!important;} To be classified as exempt from New Yorks overtime requirements, executive and administrative employees must meet minimum salary requirements and satisfy certain duties tests. On December 31, 2021, the minimum wage is increasing in every region except New York City. $(document).ready(function () { $62,400 for employers with 26 or more employees; (1) $45,000 ($865.38/week) an exempt executive, administrative, or professional employee; $58,500 ($1,125/week) for employers in New York City. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} If the employer makes deductions from an employees predetermined salary, i.e., because of the operating requirements of the business, that employee is not paid on a salary basis. If the employee is ready, willing and able to work, deductions may not be made for time when work is not available. This includes the new salary threshold of $990 per week ($51,480 when annualized) in effect as of December 31, 2021. For example, New York's rates changed on Dec. 31, while California's new statewide rates took effect on Jan. 1. Anticipated Overtime Rule Previewed - SHRM Exempt Employees: Minimum Salary Requirements for 2022 Any business that (1) employs one or more employees in New York City and (2) has. Ringing in the New Year with Minimum Wage Increases and Revised Exempt The beginning of the year is a good time for employers to audit their pay practices for compliance with federal, state and local wage and hour laws. $14 per hourfor employers with26 or more employees; $15 per hour for employers with 26 or more employees; $9.87 (unless the states unemployment rate for 2021 exceeded 8.5%, in which case the current $9.65 rate will remain in effect for 2022), $9.30 (for employers with annual gross receipts of $342k per year; otherwise, the federal minimum wage applies), $15.00, or $2 above state minimum wage, whichever is greater, $15.50 or $2 above the state minimum wage, whichever is greater, $14.00 (increasing to$15.00 by Dec. 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). .manual-search ul.usa-list li {max-width:100%;} .usa-footer .container {max-width:1440px!important;} In California, for example, the weekly salary threshold for the white-collar exemptions is calculated by doubling the state minimum wage and multiplying by 40 hours. Yes, wherever there is joint employment, all employees at all entities must be totaled together to determine which minimum wage rate applies. Colorado: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. Information about commissions or other payments may be found by downloading. 2022, employers must pay exempt EAP employees a rate at least equal to 1.75 times the state minimum wage of $14.49 an hour for a 40-hour workweek. Join us at SHRM23 as we drive change in the world of work with in-depth insights into all things HR. Computer software employees may be paid on an hourly or a salary basis in order to qualify for exemption from California's overtime requirements. As a reminder to . The US Department of Labor issued a final ruling on the new salary threshold for salary exemption: $684 per week (equivalent to $35,568 per year). Please confirm that you want to proceed with deleting bookmark. [SHRM members-only HR Q&A:What are the federal, state and local minimum wage rates?]. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. Suite 400 This fact sheet provides information on the salary basis requirement for the exemption from minimum wage and overtime pay provided by Section 13(a)(1) of the FLSA as defined by Regulations, 29 C.F.R. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. The new state minimum wage for 2023 is $15.74 an hour. To qualify for the overtime exemption, licensed physicians and surgeons must earn at least $91.07 per hour. For additional information, visit our Wage and Hour Division Website: http://www.dol.gov/agencies/whd and/or call our toll-free information and helpline, available 8 a.m. to 5 p.m. in your time zone, 1-866-4USWAGE (1-866-487-9243). Beginning January 1, 2022, these employees must earn at least: $50 per hour (for all hours worked); or A monthly salary of $8,679.16; and An annual salary of $104,149.81. Your session has expired. L&I now uses a multiplier of the state minimum wage to determine the minimum salary threshold. The minimum wage is based on where an employee performs work. anticipated proposed overtime rule would be issued in May rather than April, as the U.S. Department of Labor (DOL) originally forecast in This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies. By the time the rule is fully implemented in 2028, a salaried exempt employee will have to be paid at least 2.5 times the state minimum wage. A new rate increase will be announced and be effective on July 1, 2022. var temp_style = document.createElement('style'); No. Exempt computer employees may be paid at least $684* on a salary basis or on an hourly basis at a rate not less than $27.63 an hour. temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; Employers may provide separate notices for each region, job site, job title and pay rate, or the employer may include a listing of all rates on a single employee pay notice. . Double Secret Probation! PDF Salary threshold implementation schedule - Washington State Department To be classified as exempt from New York's overtime requirements, executive and administrative employees must meet minimum salary requirements and satisfy certain duties tests. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. Sheikh noted that increases at the state and local level are starting to plateau at about $15 an hour. Wages may be paid in a variety of ways and can include incentive pay or commissions. Employers would be wise to confirm that their payroll and human resources departments in fact made the changes they needed to make to be ready to comply with the new state and local requirements. Exempt vs. Non-Exempt; Minimum Wage Increases and NY State Salary Subscribe to our blog for the latest employment law news. } 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. A Chart providing an overview of the minimum salary thresholds for the executive, administrative, and professional exemptions (also often referred to as EAP or white collar exemptions) under state wage and hour law. .cd-main-content p, blockquote {margin-bottom:1em;} New York States salary threshold is usually higher than the federal threshold, and that will remain the case if the federal courts continue to block the planned federal increases. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. Isolated or inadvertent improper deductions will not result in loss of the exemption if the employer reimburses the employee for the improper deductions. Note that if the employer had previously employed 11 or more persons at any point during the current or prior calendar year, the employer would have to pay the Large Employer rate throughout the current calendar year. The state's minimum wage for 2023 is $15.74 an hour. Speaking on March 29 in Washington, D.C., McCutchen predicted that the The site is secure. 15. Taxable Income. "Think about your pay practices as a [Department of Labor] investigator would.". Some changes will occur later in the year. To determine whether the fee payment meets the minimum salary level requirement, the test is to consider the time worked on the job and determine whether the payment is at a rate that would amount to at least $684* per week if the employee worked 40 hours. PDF Key Facts of the Washington Overtime Rules Changes */. Federal government websites often end in .gov or .mil. The tiered salary thresholds required for exempt status are also rising effective December 31, 2021. In many cases, the state criteria are harder to meet than the federal criteria. However, no exemption from the state's minimum wage is available. Merrill noted that the changes for federal contractors may "reflect the general enthusiasm" of the Biden administration to raise the minimum wage to $15 for all workers. That exception is limited to employers who are exempt from federal overtime requirements, and who are subject to state wage order for miscellaneous industries. Chicago: $15.00 per hour (employers with 21 or more employees); $14.00 per hour for smaller employees; tipped employees must be paid at least $9.00 per hour for larger employers and $8.40 for smaller employers. "Where appropriate, employers may need to raise salaries for exempt employees or reclassify them as nonexempt," said Saima Sheikh, an attorney with BakerHostetler in New York City. United States: SEC Staff Finds Safeguarding Policies and Procedures Value Billing and Its Importance for Law Firms, SEC Steps up Oversight of Crypto Exchanges. Also, an employer is not required to pay the full salary in the initial or terminal week of employment, or for weeks in which an exempt employee takes unpaid leave under the Family and Medical Leave Act. This chart is based on state law and is intended for private sector, for-profit employers. Colorado: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. Due to an increase in the states minimum wage, the minimum salary required for the administrative, professional, and executive exemptions from overtime under state law will increase to $735.59 per week on January 1, 2022. Yes. The exempt salary thresholds in Alaska and Maine are also tied to the state minimum wage, although Alaska's minimum wage is not scheduled to change for 2022. var currentUrl = window.location.href.toLowerCase(); State: State: 2021 Minimum Wage: 2022 Minimum Wage: Arizona: $12.15: $12.80: California: $14 per hour . Like the minimum wage, the salary levels depend on employer size and location. The most commonly used exemptions are for administrative, executive and professional jobs, which are collectively called white-collar exemptions. The department defined willfulness as 1) failing to follow advice from the Wage and Hour Division that conduct is not lawful or 2) failing to adequately inquire aboutwhether the conduct is in compliance with the FLSA. The National Law Review is a free to use, no-log in database of legal and business articles. Here are some wage and hour areas employers should check for compliance: Although the federal minimum wage has been $7.25 for years, 29 states and Washington, D.C., have higher rates, and some localities require employers to pay more than the respective state. At the end of last year, more than 100 unions and advocacy groups called on the DOL to raise the salary threshold for exempt workers to $73,551 per year and to $82,745 annually by 2026. If an employer (1) has a clearly communicated policy prohibiting improper deductions and including a complaint mechanism, (2) reimburses employees for any improper deductions, and (3) makes a good faith commitment to comply in the future, the employer will not lose the exemption for any employees unless the employer willfully violates the policy by continuing the improper deductions after receiving employee complaints. What are the federal, state and local minimum wage rates? Connecticut's minimum wage will increase to $14 on July 1, and Florida's will rise to $11 on Sept. 30.