Yes. .table thead th {background-color:#f1f1f1;color:#222;} Note: In Colorado, an exempt employee's salary generally must also be sufficient to satisfy the minimum wage for all hours worked in a workweek. The minimum wage rate in New York City is based on the size of the employer. Other statesincluding Colorado, New . 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. The FAR threshold for performance and payment bonds at FAR 28.102 had one escalation adjustment in 2010, which raised the threshold by $50,000 from $100,000 and has since remained unchanged. federal court in Texas held to be invalid, set the salary threshold at $47,467 per year. Please purchase a SHRM membership before saving bookmarks. "We expect to see some increases in the minimum salary threshold in some states, but these increases are likely to move at a much slower rate than the hourly minimum wages for nonexempt employees," he said. . Minimum Wages Are On the Rise in Several States. Please log in as a SHRM member before saving bookmarks. Here are the highlights and what employers should be aware of to start the New Year. You have successfully saved this page as a bookmark. To qualify for the overtime exemption, licensed physicians and surgeons must earn at least $91.07 per hour. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { Lastly, if computer professionals in Washington are paid on an hourly basis and meet the duties requirements, they must be paid at least $55.09 per hour to be considered exempt (3.5 times the states minimum wage). Yes, every employer must provide notice by posting the applicable minimum wage poster. The duties tests denote which employees are exemptnot eligible for overtime payand they depend on a variety of factors. } However, for new, renewed and extended contracts, the minimum hourly rate will be $15 starting Jan. 30. Beginning January 1, 2022, these employees must earn at least: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { In accordance with Public Health Law section 3614-f, effective October 1, 2022, the minimum wage for home health aides increased by $2 from the basic minimum hourly rates set forth in the miscellaneous wage order. 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. Employers may want to consult legal counsel about how this rule may impact them. Enter to open, tab to navigate, enter to select, Practical Law Practice Note Overview w-013-7477, https://content.next.westlaw.com/practical-law/document/I19eee08b287511e89bf099c0ee06c731/Minimum-Salary-Thresholds-for-Executive-Administrative-and-Professional-Exemptions-Under-State-Law-Chart-Overview?viewType=FullText&transitionType=Default&contextData=(sc.Default), Minimum Salary Thresholds for Executive, Administrative, and Professional Exemptions Under State Law Chart: Overview. With the calendar turning to 2022, workers in over two dozen states and localities could see a pay increase as a result of legislation raising applicable minimum wage or exempt salary thresholds. Such employees who meet the duties requirements must be paid a salary of at least $112,065.20 annually or $53.80 per hour to be considered exempt. Should employers expect a nationwide wage hike? Currently, to qualify for the professional exemption under the FLSA, an employee must be paid a salary of at least $684.00 per week ($35,568 annually). $('.container-footer').first().hide(); .usa-footer .container {max-width:1440px!important;} . Below are the jurisdictions with laws that require exempt employees to have a salary basis above the FLSA threshold to be considered exempt employees as of Jan. 1, 2023. Suite 400 Yes. 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). She suggested that employers invest in training for their managers to create a culture of compliance. 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. 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. 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. The Washington state overtime threshold for exempt jobs as of January 1, 2022 is set by state rule at 1.75 times the state minimum wage and will be $1,014.30 per week. On December 31, 2021, the minimum wage is increasing in every region except New York City. Additionally, any decreased rates must be communicated to the employee prior to the performance of work at the lower rate of pay. The U.S. Department of Labor outlines the categories and the tests that must be met under the federal FLSA. The Trump administration's 2020 overtime rule raised the salary threshold to $35,568 per year. The Obama administration's 2016 overtime rule, which a Civil monetary penalties are available against employers, managers or supervisors who take tips earned by their employees. 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. Part 541. Like the minimum wage, the salary levels depend on employer size and location. 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. Gov. 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. You can find more answers to questions about these exemptions. But thats not the case with new state or local wage-hour laws. Albuquerque: $11.50 for employees without medica/childcare benefits, $10.50 for employees with medical/childcare benefits, and $6.90 for tipped workers, effective 1/1/2022. .agency-blurb-container .agency_blurb.background--light { padding: 0; } part 541 with an effective date of January 1, 2020. Pipeline Safety Act Preemption with Keith Coyle [Podcast], OFCCP Implements New Disability Self-Identification Form. For example, as of Jan. 1, 2022, the state overtime exempt salary threshold was determined by multiplying the current state minimum wage by 1.75. Pennsylvania Medical Supply Company Agrees to $5 Million Settlement. No. Currently, the FLSA's salary threshold is $35,568, but some states have a higher cutoff for exempt workers. Some cities in California also have midyear changes scheduled. 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. var currentUrl = window.location.href.toLowerCase(); Please log in as a SHRM member. } Merrill said states to watch include Illinois, Massachusetts and Vermont. 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. Local law may impose different or additional compensation requirements. 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. To ensure your organization is aware of the latest minimum wage requirements, please check out our breakdown by state and locality. 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. That means that employees need to be paid at those new rates effective January 1, 2022, irrespective of how busy things may have gotten in December. The minimum wage is based on where an employee performs work. 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 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. Worker Adjustment and Retraining Notification (WARN), Non-Profitmaking Institutions, Public Agencies, and Children's Camps (PDF). This rate must be used to calculate other wage and hour requirements such as overtime and spread of hours. To qualify for the exemption, employees must meet certain tests regarding their job duties and be paid on a salary basis of not less than $684 per week ($35,568 annually). The DOL has instituted civil monetary penalties for violations of the Fair Labor Standards Act's (FLSA's) She noted thatshe led the effort to revamp the duties tests in 2004. Salary-Basis Test: New York generally follows federal rules for the salary-basis test. The employer will lose the exemption if it has an actual practice of making improper deductions from salary. 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. Most employees, regardless of their rate or method of payment, must be paid overtime after 40 hours of work per week. For these two exemptions, the state generally sets the minimum salary requirement at 75 times the state minimum wage, which differs based on the region of the state. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. $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. Eagan, MN 55121 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. An employer may pay the highest rate for all hours worked, or pay each hour worked in each region at the applicable minimum wage rate for that region. National Law Review, Volume XII, Number 3, Public Services, Infrastructure, Transportation. tip-sharing provisions,as well. 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. Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees. Factors to consider when determining whether an employer has an actual practice of making improper deductions include, but are not limited to: the number of improper deductions, particularly as compared to the number of employee infractions warranting deductions; the time period during which the employer made improper deductions; the number and geographic location of both the employees whose salary was improperly reduced and the managers responsible; and whether the employer has a clearly communicated policy permitting or prohibiting improper deductions. 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. No. Yes. Statement in compliance with Texas Rules of Professional Conduct. As a result, the minimum salary required for the executive and administrative exemptions will increase on December 31, 2021 as follows: Note: There is also a professional exemption under state law. What are the federal, state and local minimum wage rates? 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. } Information about commissions or other payments may be found by downloading. 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: Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. Under law and regulation, employers have always been required to keep true and accurate records of employees weekly hours worked, rates paid, and wages earned for hours worked. 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. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. $(document).ready(function () { /*-->*/. Everyone raised their hands, but few attendees supported an increase of the salary threshold above $50,000 per year. Underpaying employees, or misclassifying them, because adjustments fell through the cracks during all of the end-of-year activities is likely to get very little sympathy from employees and just as little from the courts and from the state and local agencies that address wage-hour complaints. But the state has two separate levels for large (26 or more employees) and small employers, as well as for workers in computer software. For the outside sales employee exemption, there is no minimum salary requirement. For the computer professional employee exemption, the employee may be paid by salary (as long as it is at least $684 per week) or by the hour (as long as it is at least $27.63 per hour). While the general rule is that overtime must be paid at time and a half of the regular rate, a limited exception allows certain employers to pay time and a half of the minimum wage rate. For information about minimum wage exclusions, see our. Employers may want to consult legal counsel about how this rule may impact them. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. Adjusted for inflation, that amount today would be $42,594 annually. 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;}'; Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. No. In Maine, an exempt employees regular annual compensation must exceed 3,000 times the states minimum hourly wage or federal rate (whichever is higher). Employers may use nondiscretionary bonuses and incentive payments (including commissions) paid on an annual or more frequent basis, to satisfy up to 10 percent of the standard salary level. Yes. As a reminder to . Copies of the posters are available. An agency within the U.S. Department of Labor, 200 Constitution Ave NW Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. The following is a comprehensive list of the exempt status salary threshold by state. #views-exposed-form-manual-cloud-search-manual-cloud-search-results .form-actions{display:block;flex:1;} #tfa-entry-form .form-actions {justify-content:flex-start;} #node-agency-pages-layout-builder-form .form-actions {display:block;} #tfa-entry-form input {height:55px;} Bronx, Queens, Richmond, Kings and New York counties are included in New York City. 1-888-273-3274. Other statesincluding Colorado, New York and Washingtonhave exempt salary rules that are separate from the minimum wage and will rise for 2022. 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. USTR Releases 2023 Special 301 Report on Intellectual Property Washington Signs Into Law an Act for Consumer Health Data Privacy: Dont Look Twice, Its Alright The FCC Pulls Back the Curtain on Trending in Telehealth: April 18 24, 2023. 2023: $54,132 2024: $62,920.L&I is using a multiplier of the state minimum wage to determine the minimum salary threshold.2. Employees must be made aware of the pay rate applicable to the work they perform. A reminder that the professional exemption is not covered by the NYS salary threshold and would therefore defer to the federal FLSA salary threshold, currently $684 per week ($35,568 when annualized). Santa Fe County: $12.32 per hour for nontipped employees and $3.69 per hour for tipped employees (a new CPI adjustment will be announced and become effective on March 1, 2022), Airport employees: $18.00 (up from $17.00), Fast food workers regardless of location: $15.00 (up from $14.50), Long Island and Westchester: $15.00 (up from $14.00), Metro Portland area: $14.75 per hour (up from $14.00) on July 1, 2022, Rural areas: $12.50 per hour (up from $12.00) on July 1, 2022. $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). All other marks are the property of their respective owners. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. If an employee is covered by both federal and state law but doesn't meet both sets of tests, employers should consult with counsel to determine how they should classify the employee in that particular situation. 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. Computer software employees may be paid on an hourly or a salary basis in order to qualify for exemption from California's overtime requirements. .manual-search-block #edit-actions--2 {order:2;} Federal law establishes a minimum salary of $684 per week for the professional exemption. The state's minimum wage is scheduled to increase on January 1, 2022. 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. 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. (2) $101,250 for those who meet the duties-requirements for HCE employees. However, "do not think, 'I'm not on the list, I'm fine,' " she cautioned. .manual-search ul.usa-list li {max-width:100%;} Taxable Income. For employees in the Hospitality Industry, written notice must also be provided prior to any change in their hourly rates of pay. May 5, 2022 Under the Fair Labor Standards Act ("FLSA") employees must generally be paid at least federal minimum wage for all hours worked and overtime at a rate of one and a half times their "regular rate of pay" for all hours worked in excess of forty (40) hours in a workweek. Members can get help with HR questions via phone, chat or email. "If you fail to ask whether someone could be exempt, you could be hit with penalties," she said. 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. As a result, employers must pay a salary of at least $1,240 per week beginning January 1, 2023 to qualify for the exemption. Many state and local wage rates have been increasing in phases each year to ultimately reach $15 an hour, and some have already reached or surpassed that rate. The FAR threshold for alternatives to payment bonds at FAR 28.102 is currently $35,000; it was escalated twice, one in 2006 and again in 2015. Wages may be paid in a variety of ways and can include incentive pay or commissions. Please log in as a SHRM member before saving bookmarks. Colorado: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. You have successfully saved this page as a bookmark. $("span.current-site").html("SHRM China "); Please purchase a SHRM membership before saving bookmarks. NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. 15. 2023 Exempt Status Salary Threshold by City and State. There is no lower wage rate established for trainees or youth. 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. She noted that six 90-minute meetings have been scheduled with stakeholders from March 8 to April 6: three meetings with unions and worker advocates, plusthree more with industry groups, including one with SHRM. They are as follows: Size/Location of Employer. "We can expect to see more states proposing increased salary cutoffs in 2022 as a result of the tightening labor market," Sheikh predicted. Violations need not be repeat or willful for penalties to be available, McCutchen noted, but penalties are more likely if the violations are willful. $("span.current-site").html("SHRM MENA "); $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). 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. How high might it go? WHD will continue to enforce the 2004 part 541 regulations through December 31, 2019, including the $455 per week standard salary level and $100,000 annual compensation level for Highly Compensated Employees. If the employees rate of pay increases, the increase must be reflected in the wage statement provided with their paycheck. This rate must be used to calculate other wage and hour requirements such as overtime and spread of hours. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. And $16.20 per hour for the remainder of New York State, effective December 31, 2022. var temp_style = document.createElement('style'); 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. . The new state minimum wage for 2023 is $15.74 an hour. Subject to exceptions listed below, an exempt employee must receive the full salary for any week in which the employee performs any work, regardless of the number of days or hours worked. Congress is considering the Raise the Wage Act, which would increase the federal pay floor to $15 an hour by 2025. The Department of Labor issued a final rule on Sep. 24, 2019 increasing the salary-level. December is not the shortest month of the year, but it always seems to go by the fastest. 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. Yes, wherever there is joint employment, all employees at all entities must be totaled together to determine which minimum wage rate applies. ~$65,478.40 (2 x Minimum Wage, Employers with 51 or more Employees). reinstated a Trump-era independent contractor rule, the DOL is likely to appeal that decision, she said. Any business that (1) employs one or more employees in New York City and (2) has. McDonald said the pandemic has had more of an impact on state and local leave laws, such as expanded paid-sick-leave laws and covered reasons employees can take leave. 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.".
