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. The states minimum wage is scheduled to increase on January 1, 2022 and varies based on employer size. While nearly every employer must pay the New York State minimum wage, there are some very specific exceptions, which only apply to certain employees or employees of public entities. }); if($('.container-footer').length > 1){ Additionally, 5 states are increasing the minimum salary requirement for overtime exemption on January 1, 2022. Federal Register :: Federal Acquisition Regulation: Exemption of Find the latest news and members-only resources that can help employers navigate in an uncertain economy. An official website of the United States government. Local law may impose different or additional compensation requirements. United States: SEC Staff Finds Safeguarding Policies and Procedures Value Billing and Its Importance for Law Firms, SEC Steps up Oversight of Crypto Exchanges. 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. $('.container-footer').first().hide(); its fall 2021 regulatory agenda. If the employer pays different wage rates, they must be able to show the employees hours worked for each wage rate. Please log in as a SHRM member before saving bookmarks. . Any such catch-up payment will count only toward the prior years salary amount and not toward the salary amount in the year in which it is paid. The state's minimum wage for 2023 is $15.74 an hour. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { WA State threshold for OT exempt employees continues to rise in 2022 However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees. anticipated proposed overtime rule would be issued in May rather than April, as the U.S. Department of Labor (DOL) originally forecast in Please purchase a SHRM membership before saving bookmarks. The new state minimum wage for 2023 is $15.74 an hour. Workers must be paid the minimum wage rate for their work location regardless of where the main office of their employer is located. Contact the USDOL at (866) 487-2365 for more information. 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;}'; As a reminder, under the (FLSA), all employees must be paid at least minimum wage plus overtime for all hours worked. The following is a comprehensive list of the exempt status salary threshold by state. For existing contracts, the rate rose to $11.25 per hour on Jan. 1. "While the COVID-19 pandemic hasn't caused federal and state minimum wage rates to rise, both the pandemic and rising wage rates are adding pressure on employers to increase wage rates to address staffing shortages and attract and retain strong candidates," Sheikh said. federal court in Texas held to be invalid, managing the enterprise or a department or subdivision of the enterprise, include the exercise of discretion and independent judgment, reinstated a Trump-era independent contractor rule, New OSHA Guidance Clarifies Return-to-Work Expectations, Trump Suspends New H-1B Visas Through 2020, Faking COVID-19 Illness Can Have Serious Consequences, White House Takes Action Against Migrant Child Labor. Minimum Wage Frequently Asked Questions | Department of Labor Remainder of New York State For other places in New York State, effective Dec. 31, 2022, it's: $55,341 annually ($1,064.25 per week) Washington The department instead could quickly raise the salary threshold to around$48,000 or $49,000, McCutchen said, but she thinks if the DOL "goes for too much, it will end up with nothing," saying that the department shouldn't let the perfect be the enemy of the good. December is not the shortest month of the year, but it always seems to go by the fastest. Worker Adjustment and Retraining Notification (WARN), Non-Profitmaking Institutions, Public Agencies, and Children's Camps (PDF). Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees. } Overtime Update: Changes to The Virginia Overtime Wage Act and The Fair Yes. This year, employers should pay particular attention to minimum wage changes, higher salary requirements for exempt workers and COVID-19-related paid leave. The Obama administration's 2016 overtime rule, which a An employer may charge an allowance per meal eaten by an employee. Monday, December 20, 2021 Before ringing in the New Year, employers should carefully evaluate whether they need to adjust their current practices to ensure that they remain compliant with state. Yes. "Think about your pay practices as a [Department of Labor] investigator would.". Employers in Washington may pay computer professionals by the hour (if at least $50.72 per hour in 2022) or on a salary basis (if at least $1014.30 per week in 2022) for those employees to qualify for an overtime exemption. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} Copyright 2023 GovDocs, Inc. GovDocs is a registered trademark of GovDocs, Inc. Oregon Paid Family Medical Leave Update 2023, April Showers Bring May Flowers: Infographic, Los Angeles Fair Work Week Poster Released, GovDocs Goes Green with Eco-Friendly Labor Law Posters, If highly technical computer professionals are paid on an hourly basis and meet the duties requirements, they must be paid at least $31.41 per hour, $57,293.60 annually ($1,101.80/week); salaried workers must be paid at least 1.75 times the states minimum wage), $65,478.40 annually ($1,259.20/week); salaried workers must be paid at least two times the states minimum wage, Police, firefighters, paramedics and other first responders. Subscribe to our blog for the latest employment law news. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. 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 increases to $865.38 per week on January 1, 2022. For retirees working under the provisions of the Daily Wage Threshold, placement on the salary schedule will be in the cell closest,. McCutchen asked for a show of hands at the conference for who favored an increase in the salary threshold. In Washington, employees must satisfy certain salary and duties tests to be classified as exempt from overtime under state law. 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. Before sharing sensitive information, make sure youre on a federal government site. var currentUrl = window.location.href.toLowerCase(); McCutchen noted that industries particularly vulnerable to DOL enforcement efforts include: The department also focuses its enforcement efforts on the amusement industry; apparel manufacturing; auto repair establishments; child care services; guard services; hair, nail and skin care services; hotels and motels; janitorial services; landscaping services; and temporary help. .table thead th {background-color:#f1f1f1;color:#222;} No. 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. Employers in Washington may pay computer professionals by the hour (if at least $50.72 per hour in 2022) or on a salary basis (if at least $1014.30 per week in 2022) for those employees to qualify for an overtime exemption. As a reminder to . Isolated or inadvertent improper deductions will not result in loss of the exemption if the employer reimburses the employee for the improper deductions. New York City's alary requirements for exempt employees is: $58,500 annually ($1,125 per week) That's also the threshold in Nassau, Suffolk, Westchester Counties, counties, N.Y. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. var temp_style = document.createElement('style'); McCutchen alsonoted that the DOL is regularly recovering double damagesor liquidated damagesonce again, after the Trump administration limited their use to when an employer acted in bad faith or willfully. In many cases, the state criteria are harder to meet than the federal criteria. NLRB Propounds Expansive List of Potential U.S. Executive Branch Update April 28, 2023, Compliance Update Insights and Highlights April 2023, Early 2023 Delaware Corporate and M&A Law Review, Tycko & Zavareei Whistleblower Practice Group. In such cases, employers who are subject to state overtime requirements must pay overtime at time and a half. A New York City employer must pay the New York City Large Employer rate the moment it employs 11 persons. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. Under the federal rule, any administrative, executive or professional employee who earns less than this becomes eligible for overtime pay, regardless of actual duties, beginning January 1, 2020. To request permission for specific items, click on the reuse permissions button on the page where you find the item. This blog provides practical information on the subject matter. In 2022, employees in Washington must earn a salary of at least 1.75 times the minimum wage for a 40-hour workweek to qualify for exemption. Computer software employees may be paid on an hourly or a salary basis in order to qualify for exemption from California's overtime requirements. GovDocs, Inc. Members can get help with HR questions via phone, chat or email. The final rule is available at: https://www.federalregister.gov/documents/2019/09/27/2019-20353/defining-and-delimiting-the-exemptions-for-executive-administrative-professional-outside-sales-and. New salary threshold implementation schedule Threshold phase-in schedule for computer professionals paid hourly Understanding the job duties tests Whether you manage a postings, minimum wage or paid leave program, our products cut through research time, provide proactive insights into the everchanging landscape of employment laws and reduce the risk of noncompliance. $(document).ready(function () { The list does not include the city/county thresholds for California. New Antidumping and Countervailing Duty Petition on Non-Refillable Steel Cylinders I-9 Verification and Compliance: Navigating New Nuances Post-COVID, Foreign Sponsors Breaking Into The Us Renewables Market: Challenges And Solutions, Labor and Employment Update for Employers May 2023, Global Mobility Opportunities And Challenges: How To Navigate A Global Workforce. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. 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. Employees who work in the balance of the State (outside of New York City or Nassau, Suffolk and Westchester counties, other than Fast Food Workers) will reach $14.20 per hour on December 31, 2022. The 2022 salary threshold will change from $821.40 per week ($42,712 annually) for small employers and $958.30 ($49,831 annually) for large employers to $1,014.30 per week ($52,743.60 annually) for both small and large employers. California Supreme Court Lets It Stand That CDTFA Can Decide Who Is OFCCP Requires Federal Contractors to Implement Revised Voluntary DOJ Targets Health Care Fraud Schemes Exploiting COVID-19 Pandemic In EPA has issued an "order" permitting continued PFAS Montana and Tennessee Could Become Eighth and Ninth States to Enact Hunton Andrews Kurths Privacy and Cybersecurity. McCutchen predicted that if the DOL increasesthe salary threshold to $50,000 or above, "there will be litigation all over again by employer interest groups.". Any business that (1) employs one or more employees in New York City and (2) has. In order for an exemption to apply, an employees specific job duties and salary must meet all the requirements of the Departments regulations. This rate must be used to calculate other wage and hour requirements such as overtime and spread of hours. Being paid on a "salary basis" means an employee regularly receives a predetermined amount of compensation each pay period on a weekly, or less frequent, basis. Changes in 2022 for the Salary Threshold for Washington Exempt To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $684* per week. Pipeline Safety Act Preemption with Keith Coyle [Podcast], OFCCP Implements New Disability Self-Identification Form. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} .manual-search ul.usa-list li {max-width:100%;} Like the minimum wage, the salary levels depend on employer size and location. 15. The overtime salary threshold limits will increase for the following states: California To qualify for the overtime exemption, a computer software professionals must earn at least $50.00 per hour or $104,149.81 annually ($8,679.16 monthly). While the primary goal of the rule is to update the minimum salary-level requirement for white-collar exemptions, changes to the duties tests also will be considered, said McCutchen, who is astrategic advisor for New York City-based ComplianceHR. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies. 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. } .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} Overtime Rules Resources If the employees rate of pay increases, the increase must be reflected in the wage statement provided with their paycheck. Minimum Salary Thresholds for Executive, Administrative, and On December 31, 2022, the state minimum weekly salary for administrative and executive employees will range from $1064.25 per week for employees in New York State, to $1,125.00 per week for employees who work in Nassau, Suffolk and Westchester counties and in New York City for any size employer and Fast Food Establishments. Under the states exemption for highly technical computer employees, the employee may be paid by salary (at least $865.38 per week in 2022) or by the hour (under a state proposal, the minimum hourly rate would be $28.92 in 2022). The increase for larger employers has yet to be announced because it is tied to the CPI, but the rate for smaller employers will jump to $14.50. In Maine, an exempt employees regular annual compensation must exceed 3,000 times the states minimum hourly wage or federal rate (whichever is higher). To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $684 * per week. All Things Chemical: TSCA: New and Old A Conversation with the United States: SEC Staff Finds Safeguarding Policies and Procedures Lacking at Court Reversed the Appointment of a Successor Independent Administrator of an French Insider Episode 21: Between Warring Giants: How European Companies Can What Appellate Courts Are Missing About PAGA Standing After Viking River Cruises. Yes, wherever there is joint employment, all employees at all entities must be totaled together to determine which minimum wage rate applies. As a result, the minimum salary required for the executive, administrative, and professional exemptions from overtime under state law increases to $1,014.30 per week on January 1, 2022. Employers seeking to classify employees as exempt from overtime should ensure employees meet both federal and state exemption criteria. Note that there are special rules for tipped employees, who may be paid up to $3.00 per hour less than the minimum wage if the employee receives at least the minimum wage for all hours worked. Fact Sheet #17A: Exemption for Executive, Administrative - DOL The states minimum wage is scheduled to increase on January 1, 2022. This rate must be used to calculate other wage and hour requirements such as overtime and spread of hours. In many cases, the state criteria are harder to meet than the federal criteria. To qualify for exemption, employees generally must be paid at not less than $684* per week on a salary basis. The state's minimum wage increased on January 1, 2023. She noted thatshe led the effort to revamp the duties tests in 2004. That wage order covers industries other than hospitality and building services. 2022 Minimum Wage and Overtime Salary Threshold Increases Sheikh noted that increases at the state and local level are starting to plateau at about $15 an hour. For employees in the Hospitality Industry, written notice must also be provided prior to any change in their hourly rates of pay. $("span.current-site").html("SHRM China "); Group 1: New York City Large Employers (employees who work in New York City for Fast Food Establishments and employers of 11 or more employees) New York City Large Employers will reach $15 on December 31, 2018;Group 2: New York City all others All other employees who work in New York City will reach $15 on December 31, 2019;Group 3: All other Fast Food On July 1, 2021, for all other Fast Food Workers throughout the state;Group 4: Downstate - On December 31, 2021, for all employees in Westchester, Nassau and Suffolk counties;Group 5: All others Employees who work in the balance of the State (outside of New York City or Nassau, Suffolk and Westchester counties, other than Fast Food Workers) will reach $13.20 per hour on December 31, 2021. The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements. Join us at SHRM23 as we drive change in the world of work with in-depth insights into all things HR. Employers Should Review Their Pay Practices for the New Year - SHRM
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