Tips: The minimum wage rates in both Seattle and SeaTac continue to be higher than the statewide rate in Washington. The NLR does not wish, nor does it intend, to solicit the business of anyone or to refer anyone to an attorney or other professional. See new exemption . On March 28, 2020, the U.S. Department of Labors (DOL) Wage and Hour Division released an updated set of Questions and Answers (Q&As) that provide additional guidance concerning health care providers and emergency responders (question numbers 55, 56, and 57). Beginning January 1, 2023, these employees must earn at least: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. This is true in certain other states as well, some of which will have a new minimum wage in 2023. 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 specific minimum wage requirements for 2023, shown on the citys minimum wage webpage, will be: Employers are required to provide a written notice to each employee working in Seattle before any change in their wage rate or other terms of employment. For the outside sales employee exemption, there is no minimum salary requirement. www.grsm.com is using a security service for protection against online attacks. 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. Ogletree, Deakins, Nash, Smoak & Stewart, P.C. The minimum salary threshold will increase through January 1, 2028, at which time it is projected to reach $93,288. The hearings were held in July and August 2019 in Tumwater, Seattle, Bellingham, Ellensburg, Kennewick, Spokane and Vancouver. 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. 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. Effective January 1, 2023, civil service employees at these impacted salary ranges and step will be adjusted to minimum wage. In general, these workers must be salaried and paid a minimum specified salary level, and must primarily perform executive, administrative, professional, outside sales or computer professional duties as defined by state regulations. Seattle minimum wage: The City of Seattle is increasing its minimum wage requirement to $18.69 per hour for most employers. Because the salary. Seattle's minimum wage for large employers will increase from $17 . See L&Is Administrative Policy ES.A.9.6 (Exemption from Minimum Wage Act Requirements for Computer Professional Employees). When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. This website presents general information in nontechnical language. Since the state threshold that takes effect January 1, 2023 is higher than the federal, employers in Washington State will need to follow the higher state threshold. www.grsm.com is using a security service for protection against online attacks. If you have any questions regarding this change, please see the FAQ document or discuss them with your departments HR administrator. 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. Computer software employees may be paid on an hourly or a salary basis in order to qualify for exemption from California's overtime requirements. Exempt computer professionals: The minimum salary rate for exempt computer professionals who are paid hourly will also increase as of January 1, 2023. Accepting Cryptocurrency and Digital Asset Donations: What Charities Need to Know. 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. Licenses for Exports to Are You Ready for the UPC? National Law Review, Volume XII, Number 277, Public Services, Infrastructure, Transportation. Noncompete Agreements: Washington law prohibits noncompete agreements with employees who earn less than the states annual threshold. In a recent decision from the U.S. Supreme Court, an employee who was paid on a daily rate basis and earned more than $200,000 annually, The U.S. Department of Labor (DOL) recently released a Field Assistance Bulletin No. 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. 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. The new hourly minimum, which applies to employees 16 years and older, will increase 80 cents per. The state anticipates that by 2028, nearly 260,000 positions that were previously exempt under the Minimum Wage Act will be impacted. This means an employee exempt from overtime pay must earn at least $1,101.80 a week or $57,293.60 a year. 2023 University of Washington | Seattle, WA, University of Washington Human Resources Home, Final candidate guide to COVID-19 vaccination requirement, HR Benefits, Analytics & Information Systems, Professional & Organizational Development, FLSA and WMWA overtime eligibility and exemption, Checklist Create professional staff temporary position, Department responsibility for pay equity review, Wage and salary setting for staff and student positions, Student hourly employee compensation and work hours limits, Total compensation statements for UW staff, WA State threshold for OT exempt employees will rise in 2023 by 24%. Learn how Vigilant membership can help with your complex employment situations. Effective January 1, 2023, employees must earn $65,478.40 annually ($5,456.55 monthly) to be exempt from overtime, regardless of duties and responsibilities. Many states have their own salary and duties tests for determining whether an employee is exempt from overtime under state rules. Due to the monthly base pay model at the UW requiring a whole dollar amount, the UW's thresholds are slightly higher than the state's thresholds as shown in the table below: Our new tool provides background on the upcoming changes in the overtime rules, and also includes a tool that can help determine if an employee likely qualifies as exempt or not. In addition, many of our staff colleagues perform duties that meet the laws exemptions for Executive, Administrative, or Professional positions. Waters of the United States and Winston Churchill. Check outtheovertime rulemaking documents. Exempt salary: As a result of the minimum wage increase for nonexempt employees, the minimum salary for white-collar workers who are exempt from overtime will increase as of January 1, 2023, as well. Human Resources will provide training and share best practices to guide supervisors through the impact of these changes. Washington State Proposal Would Radically Increase Exempt Salary Threshold The Washington Department of Labor and Industries recently issued proposed amendments to the state's white-collar. This approach follows the principle of law that in the event of a conflict between state and federal law, the law more protective of the employee will apply. (s#%=]XzqEh$P=%D&H.&Ab}d!,x\pK+!r dev"! This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. Effective Jan. 1, 2020, the federal minimum salary threshold increased to $684 a week. Cities are allowed to set higher minimum wages. In 2023, small employers (one to no more than fifty employees) must pay exempt employees 1.75 times the minimum wage, meaning that exempt employees of small employers must earn at least $1,101.80 per week ($57,293.60 per year) to meet the minimum salary requirement to be exempt from overtime requirements. Employees aged 14 to 15 years old must earn at least $13.38 per hour in 2023. Employment Standards message: 2023 salary thresholds set for overtime exempt employees. (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. As EPA continues to move toward identifying PFAS as Hazardous Is an OSHA Workplace Violence Standard for the Healthcare Industry on Yellen Calls on World Bank to Take Decisive Action on Climate Change, To Volunteer or Not: The Role of Community Association Board Members. The Washington State Department of Labor & Industries (L&I) determines minimum thresholds using a multiplier of the state minimum wage. Colorado. Heres what we know about these rate increases: Statewide minimum wage: The statewide minimum wage rate for nonexempt (overtime-eligible) workers will rise to $15.74 per hour (up from $14.49), effective January 1, 2023. So You're Green Prove It or Be Prosecuted: ACCC Sweep Finds 57 California Court of Appeal Addresses When Violations are Willful or Whats new in Belgium on the employment front? BY Washington House . 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. Mr. Pankratz has experience successfully representing employers in executive termination, non-compete and unfair competition disputes. This means, for example, that a 50% (half-time) employee whose annualized salary is $120,000 would be overtime eligible because their actual, half-time salary would be $60,000, which is less than the new $65,484 threshold. How you can stay informedCheck out the overtime rules fact sheet. The public submitted almost 2,300 comments by email, fax, and mail, and 182 people testified during public hearings during this process. In other cases, employers may need to increase salaries for exempt employees. Dirty Steel-Toe Boots, Episode 16: Investigations and the OSH Acts DOE Issues FOA for Carbon Capture Large-Scale Pilots and Carbon A Forward Look at IRAs Sweeping Impact on the EV Sector [PODCAST]. Due to the monthly base pay model at the UW requiring rounding up to a whole dollar amount, the UWs monthly and annualized thresholds are slightly higher than the states weekly threshold as shown in the table below: L&I Salary Threshold effective Jan 1, 2023. 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. Following a nationwide trend (including California, Delaware, Illinois, Pennsylvania, and other states), Wisconsin Governor Tony Evers announced he will be issuing a safer-at-home order in response to the COVID-19 outbreak. This same threshold applies to part-time employees; it is not pro-rated for employees who are less than full-time. Ogletree Deakins Seattle office and will continue to monitor and report on Washington State wage and hour developments and will post updates to the firms Washington and Wage and Hour blogs as additional information becomes available. 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). Statement in compliance with Texas Rules of Professional Conduct. 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved. 2023 salary thresholds set for overtime exempt employees, Chapter 296-128 of the Washington Administrative Code. The changes are summarized below: To be classified as exempt from overtime under state law (Alaska Statute 23.10.055), bona fide administrative, professional and executive employees must satisfy certain salary and duties tests. Ms. Bannons employment law practice includes providing employers proactive advice and practical solutions to current or potential employee problems to manage risk related to discipline Ms. Fletcher represents employers in all aspects of employment claims and litigation in federal and state courts, at arbitration, mediation, and before administrative agencies, including matters involving wrongful termination, discrimination, sexual harassment, disability and religious accommodation, retaliation, wage and hour, and breach of contract claims. 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. However, if paid by the hour, the minimum hourly rate for 2022 for computer professionals is $50.72 per hour. These laws require the university to provide overtime pay to employees for any work hours exceeding 40 hours in a given workweek unless that employee is exempt from these laws. California Law May Limit Hospitals Ability to Adopt The Joint Ankura CTIX FLASH Update - February 28, 2023, Ankura Cyber Threat Investigations and Expert Services. Seattles minimum wage rates apply to all nonexempt employees for all hours they work within the city limits. Mobile Arbeit und regionale Feiertage was gilt? This saying is often heard from Vigilants own Safety Manager, Manish Gooneratne. Starting Monday, December 26, 2022, they will need to track the hours that they work following the established time tracking procedure in their department. The exact threshold depends on the employer's size: For employers with 1-50 employees, the threshold salary level will be 1.75 times the state minimum wage. Ms. Bannons practice has emphasized the defense of municipal and other governmental clients in state and federal court litigation, in addition to providing routine employment law advice and counsel to local agencies Human Resources professionals. Good News for American Businesses: H1-B Denial Rates Plummet Under USCIS Extends Comment Period for Proposed Fee Increases, OFCCP Rescinds Trump-Era Religious Exemption Rule. Suggest a topic and we might discuss it in a future blog post. For employees working in Seattle and the City of SeaTac, the local minimum wage rate applies as long as it remains higher than the state minimum. Unless otherwise noted, attorneys are not certified by the Texas Board of Legal Specialization, nor can NLR attest to the accuracy of any notation of Legal Specialization or other Professional Credentials. 2023 Exempt Status Salary Threshold by City and State . Given the steep increase in the minimum wage, the states salary requirements for exempt employees are also increasing significantly. 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. "It Ain't Over 'Til It's Over" - Use Of A PTO Introduces Trademark Decisions and Proceedings Search Tool, FDA Issues Draft Guidance on Labeling of Plant-Based Milk Alternatives, Government Wins $43 Million Verdict in False Claims Act Case, BETO Will Host March 23 Listening Session on Next Billion-Ton Report. Employees aged 14 to 15 years old must earn at least $13.38 per hour in 2023. Mar 02, 2023 Information regarding minimum wage can be found on theHRS website. 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 following is a comprehensive list of the exempt status salary threshold by state. Words With Friends, Part 1: Insurance Requirements and Contracts, Legislator Proposes To Expand CFL To Encompass "Commercial CERCLA PFAS Scope May Broaden To Many More PFAS, AI Avatar App is the Latest Target of BIPA Class Action Litigation. For information about any potential impacts on academic personnel, please email the Office of Academic Personnel at acadpers@uw.edu or call 206-221-UWAP (8927). Public input during the rulemaking processL&I updated the overtime rules through a rulemaking process that began in March 2018. The increases mandated by voter-approved Initiative 1433 stopped in 2020. Departments must monitor employee work location to ensure the pay rate is correct and make necessary adjustments. A new 2023 version of the required workplace poster is available online. The salary threshold is adjusted for inflation each year by L&I, and will increase from $107,301.04 (the 2022 rate) to $116,593.18 for 2023. Their current minimum wage is $17.54 per hour. Desperate Times, Desperate Measuring Cups FTC Brings Enforcement Trending in Telehealth: February 20 26, 2023, IRS Sets Deadline For Using 401(K) Plan Forfeitures, How Generative AI Generates Legal Issues in the Games Industry, DOJ Announces New Nationwide Voluntary Self-Disclosure Policy. These workers are typically "white collar" workers who often have more economic security and relative bargaining power than lower-wage workers. 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. The state's minimum wage increased on January 1, 2023. The Department of Labor & Industries (L&I) has updated the employment rules that determine which workers in Washington are required by law to be paid at least minimum wage, earn overtime pay, and receive paid sick leave and other protections under the state Minimum Wage Act. Please enable JavaScript on your browser and try again. As a result of a new state minimum wage, the salary thresholds used to determine which workers are exempt from overtime under state law also increased effective January 1, 2023: Note: Employers of any size may pay exempt computer professionals by the hour, provided they pay at least 3.5 times the minimum wage ($55.09 per hour in 2023). 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. It will continue to increase annually thereafter based on inflation. Noncompete Agreements: Washington law prohibits noncompete agreements with employees who earn less than the state's annual threshold. Exempt computer professionals who are paid on an hourly versus salary basis must earn at least $55.09 per hour (3.5 times the minimum wage). 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. Under state law, 14 and 15-year-olds can be paid 85% which will be $13.38 in 2023. A bill (S1982) introduced in the Senate on June 16 would create a Workers Compensation Ombudsman for Injured Workers. This rate is subject to mandatory annual adjustments which are usually announced in October or early November. These changes affect executive, administrative, and professional (EAP) workers as well as outside salespeople and computer professionals across all industries in Washington.