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. Note: The minimum salary threshold does not apply bona fide teachers exempted under the Professional Exemption. In addition, work volume is dependent on operational needs and work must be performed to meet those needs. New salary threshold implementation schedule, Threshold phase-in schedule for computer professionals paid hourly. Tips: The minimum wage rates in both Seattle and SeaTac continue to be higher than the statewide rate in Washington. Washington Sets New Minimum Wage and Overtime Exempt Threshold for 2023 Exempt computer professionals: The minimum salary rate for exempt computer professionals who are paid hourly will also increase as of January 1, 2023. New Minimum Wage Increases and Revised Exempt Salary Thresholds 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. Employees aged 14 to 15 years old must earn at least $13.38 per hour in 2023. Washington state minimum wage to increase 80 cents Saturday In many cases, the state criteria are harder to meet than the federal criteria. . 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). The salary rates may vary depending on the city/county where an employee resides/works in California. Our employment attorneys and workplace safety experts will take a look at your question and possibly select it for our next post. PPTX Washington State Overtime exemption changes - 2021 2023 Exempt Status Salary Threshold by City and State . Managers will need to assess staffing patterns and design the work to balance resources and overtime. Employers seeking to classify employees as exempt from overtime should ensure employees meet both federal and state exemption criteria. BY 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. 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. (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. This is true in certain other states as well, some of which will have a new minimum wage in 2023. 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. This same threshold applies to part-time employees; it is not pro-rated for employees who are less than full-time. If you live in a county with a special exempt threshold and do not see it listed, visit your district Department of Labor website to obtain accurate information. Given the steep increase in the minimum wage, the states salary requirements for exempt employees are also increasing significantly. WASHINGTON: Minimum wage and exempt salary increase in 2023 These new Washington state laws go into effect in 2023 Are Your Pay Rates Compliant for 2020? - SHRM Using the 2023 minimum wage starting January 1, 2023, L&I calculated . 2023 Exempt Status Salary Threshold by City and State. These changes affect executive, administrative, and professional (EAP) workers as well as outside salespeople and computer professionals across all industries in Washington. The new state minimum wage for 2023 is $15.74 an hour. The list includes some special districts in states but does not include all of said districts. Starting January 1, 2022, the Washington state minimum wage will be $14.49 per hour. Use tab to navigate through the menu items. Please understand that merely contacting us does not create an attorney-client relationship. 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. Waters of the United States and Winston Churchill. 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. In 2019, at the direction of Governor Inslee, the Washington State Department of Labor & Industries (L&I) published a new schedule of minimum salary thresholds through January 1, 2028. This saying is often heard from Vigilants own Safety Manager, Manish Gooneratne. 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.. If other salary changes are needed, departments should process those actions in accordance withuniversity policies. State salary threshold for overtime exemption and minimum wage update If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor. 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. The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. 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). Chris Edison, L&Is salary implementation threshold schedule, State Laws on the White Collar Exemption from Overtime, ADA: Reasonable Accommodation and the Interactive Process, Vigilant Member Hiring & Retention Survey, $18.69 per hour (up from $17.27 per hour) for large employers (more than 500 employees worldwide); or, $18.69 per hour for smaller employers (500 or fewer employees) who dont pay at least $2.19 per hour toward an employees medical benefits and/or if the employee doesnt earn at least that much per hour in tips; or. In order to be exempt from overtime, employees must also meet one of the duties tests. Employers have several options to comply with the new federal and state salary thresholds: Reclassify exempt positions as hourly, non-exempt positions. 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. es.a.9.9 salary thresholds page 1 of 6 6/26/2020 administrative policy state of washington department of labor and industries employment standards title: salary thresholds for number: es.a.9.9 exemption from minimum wage act for white-collar workers issued: 6/26/2020 Their current minimum wage is $17.54 per hour. In Washington, employees must satisfy certain salary and duties tests to be classified as exempt from overtime under state law. Especially in changing times, thank you so much for your hard work and all you do for Seattle University and our campus community. If you would ike to contact us via email please click here. Accepting Cryptocurrency and Digital Asset Donations: What Charities Need to Know. The salary threshold under federal law is only $684 per week, so employers in Washington must pay at the higher state level. 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). 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. 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. Part 1 training plans. This is a 5.83 percent increase from the current 2021 minimum wage of $13.69 per hour. 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 Washington State minimum wage will see a steep increase in 2023, due to the 8.6% rate of inflation. The service requires full cookie 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. The Washington State minimum wage increases Saturday, reflecting inflation over the past year. STATE does not have a highly compensated employee exemption. California Law May Limit Hospitals Ability to Adopt The Joint Ankura CTIX FLASH Update - February 28, 2023, Ankura Cyber Threat Investigations and Expert Services. Details are available on the Department of Labor and Industries (L&I) Washington minimum wage webpage. 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). The annually increasing salary thresholds specifically apply to the many university positions within the Executive, Administrative, and Professional exemptions. 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. 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). Mr. Pankratz has experience successfully representing employers in executive termination, non-compete and unfair competition disputes. If you have questions about which rates apply to your employees or whether they are exempt, contact your Vigilant Law Group employment attorney. For example: relocation pay. In other cases, employers may need to increase salaries for exempt employees. Wisconsin Governor Announces Closures to Non-Essential Businesses, Senate Bill Would Create a Workers' Compensation Ombudsman, The FFCRA: DOL Releases Updated Guidance on Exempt Health Care Providers and Emergency Responders. University of Washington School of Law, J.D. Employees aged 14 to 15 years must earn at least $13.38 per hour. You will be redirected once the validation is complete. 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. 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. Under state law, 14 and 15-year-olds can be paid 85% which will be $13.38 in 2023. 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. The service requires full JavaScript support in order to view this website. WA State threshold for OT exempt employees continues to rise in 2021 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved. State Developments, Wage and Hour, Washington. 2023 Exempt Status Salary Threshold by City and State The increases mandated by voter-approved Initiative 1433 stopped in 2020. Due to the monthly base pay model at the UW requiring a whole dollar amount, the UW's thresholds are slightly higher than the state's thresholds as shown in the table below: Can Nonprecedential Decisions Be Relied Upon? Beginning January 1, 2022, the Washington State's minimum wage will be $14.49 per hour, increasing from the current minimum wage of $13.69 per hour. Employers may want to consult legal counsel about how this rule may impact them. Licenses for Exports to Are You Ready for the UPC? (s#%=]XzqEh$P=%D&H.&Ab}d!,x\pK+!r dev"! 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. Mar 02, 2023 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. Beginning January 1, 2023, these employees must earn at least: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. 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. 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. 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. 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. The new hourly minimum, which applies to employees 16 years and older, will increase 80 cents per. Suggest a topic and we might discuss it in a future blog post. 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. Note: There is also a professional exemption under state law. 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. The L&I salary threshold will change annually through 2028. HR will reclassify those employees as "nonexempt" on January 1, 2023. BIPA ALERT: Illinois Supreme Court Opens the Door to Punitive, President Biden to Nominate Julie Su as New Secretary of Labor, The European Unitary Patent: Why Retailers Should Care, New York City Employers Prepare for AI Bias Law [VIDEO], Administration's WOTUS Rule Muddies Jurisdictional Waters. 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. The overtime threshold . Recent CFPB Actions Focus on Protecting Military Families, New and Updated Guidance on the Scope of the UK Plastic Packaging Tax. 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. 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). 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. See our Legal Guide, Noncompetition Agreements, for guidance on additional requirements in Washington. Statement in compliance with Texas Rules of Professional Conduct. Given the steep increase in the minimum wage, the states salary requirements for exempt employees are also increasing significantly. Washington State Announces 2023 Minimum Wage Rate and Salary Thresholds Noncompete Agreements: Washington law prohibits noncompete agreements with employees who earn less than the states annual threshold. It will continue to increase annually thereafter based on inflation. Washington Wage and Hour Developments for Q1 2022 - The National Law Review 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. Important information for employers is also available via the firms webinar and podcast programs.