The minimum salary threshold for individuals to be exempt from overtime will increase from $455 per week ($23,660 annually) to $684 per week ($35,568 annually). The performance of certain types of work in an employees home is prohibited under the law unless the employer has obtained prior certification from DOL. The WMWA rules state that an employee who otherwise meets the salary basis requirements shall not be disqualified from the exemption if that public employee is paid according to a pay system that is established by statute, ordinance, regulation or by a policy or practice established according to the principles of public accountability under which the employee accrues personal leave (annual, vacation etc.) Sample language personal information, including employees name, home address, occupation, sex, and birth date if under 19 years of age; total hours worked each workday and each workweek; total daily or weekly straight-time earnings; regular hourly pay rate for any week when overtime is worked; The Department is authorized to supervise the payment of unpaid minimum wages and/ or unpaid overtime compensation owed to any employee(s). coaches, road scholars? The Focus HR team will be reaching out to all of our clients to go over these changes and how they may be impacted, but if you have any questions or concerns, please contact us. } For an hourly part-time employee - what happens if they dont work the same number of hours each week and some weeks they are below the salary threshold and some weeks they are above it? Employers who violate the child labor provisions of the FLSA may be subject to civil money penalties. 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. Exemptions from Both Minimum Wage and Overtime Pay. All employees of certain enterprises having workers engaged in interstate commerce, producing goods for interstate commerce, or handling, selling, or otherwise working on goods or materials that have been moved in or produced for such commerce by any person, are covered by the FLSA. The above matters are for agreement between the employer and the employees or their authorized representatives. The exemptions provided by FLSA Section 13(a)(1) apply only to "white-collar" employees who meet the salary and duties tests set forth in the Part 541 regulations. The exemptions do not apply to manual laborers or other "blue-collar" workers who perform work involving repetitive operations with their hands, physical skill and energy. L&I Administrative Policy ES.A.9.5; WAC 296-128-530(2)(a). } Flagstaff: $12.80 per hour: This is a $0.65 increase from the 2021 rate of $12.15 per hour. SHRM members receive exclusive access to templates, tools, webcasts, how-to guides and more aimed at helping HR professionals get their organizations into compliance with the new overtime regulations. Cook County: $13.00 per hour; $7.20 per hour for tipped employees, Portland: $13.00 per hour; $6.50 per hour for tipped employees, Montgomery County: $15.00 + CPI increase for large employers (51 or more employees) as of July 1, 2022; $14.50 for midsized employers (11 to 50 employees) as of July 1, 2022; $14.00 for small employers (10 or fewer employees) as of July 1, 2022, Minneapolis: As of July 1, 2022, $15.00 per hour (up from $14.25) for employers with 100 or more employees and $13.50 per hour (up from $12.50) for employers with fewer than 100 employees, Saint Paul: As of July 1, 2022, $15.00 per hour (up from $12.50) for employers with more than 10,001 employees, $13.50 per hour (up from $12.50) for employers with between 101 and 10,000 employees, $12.00 per hour (up from $11.00) for employers with between 6 and 100 employees, and $10.75 per hour (up from $10.00) for employers with 5 or fewer employees. However, the employees must receive their normal wages for hours spent in such training and the training must not be job specific. However, at any age, minors may deliver newspapers; perform in radio, television, movie, or theatrical productions; work for parents in their solely-owned non-farm business (except in mining, manufacturing or on hazardous jobs); or gather evergreens and make evergreen wreaths. .usa-footer .container {max-width:1440px!important;} For that week only, the employee would be entitled to protections under the Minimum Wage Act, which would include payment for all time worked over 40. You are highly encouraged to take a close look not only at the salary, but at whether the position duties meet the job duties test under L&Is rules. Such individuals include student-learners (vocational education students), as well as full-time students in retail or service establishments, agriculture, or institutions of higher education. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { Illinois. The FLSA is enforced by the U.S. Office of Personnel Management for employees of other Executive Branch agencies, and by the U.S. Congress for covered employees of the Legislative Branch. Virtual & Washington, DC | February 26-28, 2023. The provisions include restrictions on hours of work for minors under 16 and lists of hazardous occupations orders for both farm and non-farm jobs declared by the Secretary of Labor to be too dangerous for minors to perform. Join/Renew Now and let SHRM help you work smarter. 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;}'; Pennsylvania Raises Exempt Salary Threshold The Pennsylvania Department of Labor and Industry published its final rule to substantially increase the salary cutoff for exempt executive,. $(document).ready(function () { The employer may consider tips as part of wages, but the employer must pay at least $2.13 an hour in direct wages. Split level pay ranges are salary ranges in which the new WMWA salary threshold falls somewhere in the current salary range. In addition, academically oriented youths enrolled in an approved Work-Study Program (WSP) may be employed during school hours. The California HR e-newsletter is a free monthly newsletter that provides the top California HR and employment law news, including updates on state and federal court decisions and analysis of state legislation and regulations. 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. Currently, the salary threshold for the professional exemptions is $684 per week, which equates to $35,578 per year. So far there have been no changes for 2022. The UCs will retain the higher FLSA salary threshold of $913 per week for staff positions, as implemented in December 2016. If an agency has already determined that a position meets the exemption criteria and there have been no substantive changes to the position duties since it was last reviewed, is there any reason why the agency would need to review it again before changing the employee to overtime exempt once they reach the salary threshold? Changes to the standard salary level to exempt EAP employees from WMWA overtime requirements are effective January 1, 2021. The employee is entitled to an additional one-half times this regular rate for each hour over 40, plus the full piecework earnings. While the FLSA does set basic minimum wage and overtime pay standards and regulates the employment of minors, there are a number of employment practices which the FLSA does not regulate. /*--> p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; Further information on prohibited occupations is available from https://www.dol.gov/agencies/whd/youthrules. Visit Here. In 2021, the salary threshold for overtime was $684 a week, or $35,568 per year. $("span.current-site").html("SHRM MENA "); In farm work, permissible jobs and hours of work, by age, are as follows: Minors of any age may be employed by their parents in any occupation on a farm owned or operated by their parents. Unlike the federal law, WMWA does not include a highly compensated employees (HCE) standard. HR professionalsmust knowhow to determine overtime eligibilityfor each employee. Members may download one copy of our sample forms and templates for your personal use within your organization. Send request toState HRClassification and Compensation . The regular rate of pay for that week is $405 divided by 45, or $9.00 an hour. Santa Fe City: $12.31 per hour for nontipped employees. The reasonable cost or fair value of board, lodging, or other facilities customarily furnished by the employer for the employees benefit may be considered part of wages. Currently, the FLSA's salary threshold is $35,568, but some states have a higher cutoff for exempt workers. Employees who have filed complaints or provided information cannot be discriminated against or discharged on account of such activity. 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. In general, hours worked includes all time an employee must be on duty, or on the employers premises or at any other prescribed place of work, from the beginning of the first principal activity of the work day to the end of the last principal work activity of the workday. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} In that case, an additional $4.00 is due for each of the 20 overtime hours for a total of $560 for the week. At that time, DOL proposed upping the minimum salary threshold from $23,660 a year to $50,440 a year, an increase of 113%, with additional increases in subsequent . .manual-search ul.usa-list li {max-width:100%;} Employers with 51 or More Employees: $958.30 per week. 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. The Department of Labor intends to propose updates to the salary threshold regularlyto ensure that these levels continue to provide useful tests for exemption. 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). Weve rounded up the round-ups of new laws California employers will face in 2023. RCW 49.46.010(3)(c). Domestic service workers such as day workers, housekeepers, chauffeurs, cooks, or full-time babysitters are covered if: Tipped employees are individuals engaged in occupations in which they customarily and regularly receive more than $30 a month in tips. In many cases, the state criteria are harder to meet than the federal criteria. Both federal law (Fair Labor Standards Act or FLSA) and state law (New York Minimum Wage Act and applicable regulations) generally require the payment of overtime wages for work performed after 40 hours per week. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); An employee may file a private suit to recover back wages, an equal amount in liquidated damages, plus attorneys fees and court costs. A minimum wage of not less than $4.25 an hour is permitted for employees under 20 years of age during their first 90 consecutive calendar days of employment with an employer. In no case may the regular rate be less than the minimum wage required by the FLSA. It is not enough to meet one test but not the other unless the claimed exemption is one for a professional whose duties alone make them exempt regardless of the salary paid or if other specific rules apply, such as in higher education (see #4 above and #1 Note). Please contact your assigned AAG for assistance with questions involving the impact of multiple appointment types on an employees overtime status. Salary - The regular rate for an employee paid a salary for a regular or specified number of hours a week is obtained by dividing the salary by the number of hours for which the salary is intended to compensate. The records do not have to be kept in any particular form and time clocks need not be used. The salary shall not be subject to deduction because of various in quantity or quality of the work performed, subject to exceptions in WAC 296-128-532(3). Under the WMWA, the standard salary threshold is higher and more favorable to the worker. While details of the 2022 proposed changes are forthcoming, organizations should prepare now to address pending challenges and associated opportunities. 6. The following examples are based on a maximum 40-hour workweek applicable to most covered nonexempt employees. 13. Who should you contact regarding agency or higher education institution specific questions? Will employees who are currently considered exempt under FLSA remain exempt under WMWA? Workers who customarily receive more than $100 per month in tips must still receive the minimum hourly wage in the City, so if they arent earning enough in tips the employer must pay them enough to make up the difference. 541.710(a). Please purchase a SHRM membership before saving bookmarks. $12.00. The new federal threshold, which took effect Jan. 1, 2020, is $684 a week ($35,568 a year). The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments. $(document).ready(function () { $50,000 per year ($961.54 per week) 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 It's also worth noting that Colorado's standard threshold will increase in 2024, with an indexed increase slated for 2025. The right to file a comment with the Ombudsman is in addition to any other rights a small entity may have, including the right to contest the assessment of a civil money penalty. L&I Administrative Policy ES.A.9.5; WAC 296-128-530(2)(a); See also for guidance attached DOL Fact Sheet. } Meeting the salary threshold doesn't automatically make an employee exempt from overtime pay; the employee's job duties also must primarily involve executive, administrative or professional duties as defined by the regulations. Such employment is permitted only under certificates issued by WHD. One Washington - transformation of enterprise systems, Memos sent to agencies and the Legislature. The top employee benefits companies are focusing on Dive Insight: Plans to raise the FLSA white-collar exemption threshold have been in the works for more than a year. 10. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. Small entities wishing to comment on WHD enforcement activities may call 1-888-REG-FAIR (1-888-734-3247), or write the Office of the National Ombudsman, U.S. Small Business Administration, 409 3rd Street, SW, MC2120, Washington, DC 20416-0005, or visit the Ombudsmans internet website,www.sba.gov/ombudsman/. Fair Labor Standards Act Effective Date of Policy: 03/01/2021 Next Scheduled Review: 04/01/2022 . Whether compliance would be an undue hardship is determined by looking at the difficulty or expense of compliance for a specific employer in comparison to the size, financial resources, nature, and structure of the employers business. Example: An employee paid $8.00 an hour works 44 hours in a workweek. Minimum Wages Are On the Rise in Several States. While employers are not required under the FLSA to provide breaks to nursing mothers who are exempt from the overtime pay requirements of Section 7, they may be obligated to provide such breaks under State laws. For those who have access to the Internet, further information may also be obtained on WHDs Internet Home Page which can be located at the following address:www.dol.gov/agencies/whd. To ensure your organization is aware of the latest minimum wage requirements, please check out our breakdown by state and locality. 5. .manual-search-block #edit-actions--2 {order:2;} Employees must be paid a salary of at least $684 per week/$35,568 annually, and the employee's duties must fall within one of the so-called "white collar exemptions." 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. Also prohibited are partial displacements such as reducing employees hours, wages, or employment benefits. In order for an exemption to apply, an employee's specific job duties and salary must meet all the requirements of the Department of Labor's regulations. Overtime must be paid at a rate of at least one and one-half times the employees regular rate of pay for each hour worked in a workweek in excess of the maximum allowable in a given type of employment. Las Cruces: $11.50 per hour for nontipped employees and $4.60 per hour for tipped employees. 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, How to Handle Overtime, Meal Break and Other Wage and Hour Crises. Effective Jan. 1, 2020, the federal minimum salary threshold increased to $684 a week. WAC 296-128-532. Employers seeking to classify employees as exempt from overtime should ensure employees meet both federal and state exemption criteria. 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.