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. 2022: $15.00: $1,200: $5,200: $62,400: Under a special provision, youths 14 and 15 years old enrolled in an approved Work Experience and Career Exploration Program (WECEP) may be employed for up to 23 hours in school weeks and 3 hours on school days (including during school hours). Employers may want to consult legal counsel about how this rule may impact them. Some apply to specific types of businesses; others apply to specific kinds of work. WMWA exempts certain kinds of covered employees from its requirements, including bona fide Executive, Administrative, and Professional (EAP) workers. . These examples do not define the conditions for each exemption. Send request toState HRClassification and Compensation . 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. Effective Jan. 1, 2020, the federal minimum salary threshold increased to $684 a week. A 3-year statute of limitations applies in cases involving willful violations. Under this agreement, the regular rate will vary in overtime weeks. These penalties may be increased for each violation that results in the death or serious injury of an employee who is a minor, and may be doubled if the violation was determined to be willful or repeated. Coaches are exempt under the professional exemption, when their primary duty is teaching student athletes how to perform their sport. But employers in the state will still need to stay informed about movements at the federal level. The proposal is expected to be issued in the near future. Any employees who are not covered by the FLSA may be paid less than $7.25 an hour. Partial overtime pay exemptions apply to employees engaged in certain operations on agricultural commodities and to employees of certain bulk petroleum distributors. TheFair Labor Standards Act (FLSA)is a federal law which establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments. The new proposal is likely to be issued in the near future and could be issued as early as this month. See also federal law for guidance, 29 C.F.R. Currently, the FLSA's salary threshold is $35,568, but some states have a higher cutoff for exempt workers. Unless exempt, employees covered by the Fair Labor Standards Act must receive at least time and one-half their regular pay rate for all hours worked over 40 in a workweek. Consider the following: 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. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. 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. Effective January 1, 2021, the rule increases the minimum salary required for the executive, administrative, and professional exemptions under state law as follows: Employers with 50 or Fewer Employees: $821.40 per week. Was this article useful? Virtual & Washington, DC | February 26-28, 2023. Santa Fe City: $12.31 per hour for nontipped employees. Example: An employee paid $8.00 an hour works 44 hours in a workweek. 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). A space temporarily created or converted into a space for expressing milk or made available when needed by the nursing mother is sufficient provided that the space is shielded from view, and free from any intrusion from co-workers and the public. ol{list-style-type: decimal;} 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 . 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. . Five states are increasing the minimum salary requirement for overtime exemption on January 1, 2022. Workweek - A workweek is a period of 168 hours during 7 consecutive 24-hour periods. .h1 {font-family:'Merriweather';font-weight:700;} Employers are prohi-bited from taking any action to displace employees in order to hire employees at the youth minimum wage. In no case may the regular rate be less than the minimum wage required by the FLSA. Youths 18 years or older may perform any job, whether hazardous or not, for unlimited hours; Minors 16 and 17 years old may perform any nonhazardous job, for unlimited hours; and. As WHD authorized representatives, they conduct investigations and gather data on wages, hours, and other employment conditions in order to determine compliance with the law regardless of workers immigration status. Restrictions apply in the manufacture of knitted outerwear, gloves and mittens, buttons and buckles, handkerchiefs, embroideries, and jewelry (where safety and health hazards are not involved). Most employees covered by the Washington Minimum Wage Act (WMWA) must be provided a minimum wage, overtime for working above 40 hours in a seven day workweek, and paid sick leave. Hours Worked - Covered employees must be paid for all hours worked in a workweek. The piece rate must be the one actually paid during nonovertime hours and must be enough to yield at least the minimum wage per hour. Exemptions from Both Minimum Wage and Overtime Pay. An agency within the U.S. Department of Labor, 200 Constitution Ave NW 541.602(a). In many cases, the state criteria are harder to meet than the federal criteria. 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). Everything HR professionals need to know about the FLSA salary threshold. If your agency would like to change the work period designation from overtime eligible to overtime exempt or lawenforcementyou must request approval fromStateHR. 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. 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. Only employees who are not exempt from the FLSAs overtime pay requirements are entitled to breaks to express milk. Civil money penalties may be assessed for child labor violations and for repeat and/or willful violations of FLSA minimum wage or overtime requirements. Since state law is more favorable, employees who are currently exempt under FLSA may now be overtime eligible under state law requiring the employer to provide overtime pay to those employees. What happens to employees in positions assigned to split level pay ranges when their salary exceeds the new WMWA salary threshold? The FLSA requires employers to keep records on wages, hours, and other items, as specified in DOL recordkeeping regulations. How can employers avoid salary compression when raising the minimum salary for exempt employees under the revised overtime regulations? Find the latest news and members-only resources that can help employers navigate in an uncertain economy. Unlike the federal law, WMWA does not include a highly compensated employees (HCE) standard. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. .cd-main-content p, blockquote {margin-bottom:1em;} California also has the following new local minimum wages: Alameda: $15.00 (a new CPI adjustment will be announced and become effective on July 1, 2022), Belmont: $16.20 (a new CPI adjustment will be announced and become effective on January 1, 2022), Berkeley: $16.32 (a new CPI adjustment will be announced and become effective on July 1, 2022), Emeryville: $17.13 (a new CPI adjustment will be announced and become effective on July 1, 2022) (businesses located outside Emeryville that contract with the city and perform their services outside the city must comply with the living wage rate, which is $16.97), Fremont: $15.00 for small employers; $16.00 for large employers (a new CPI adjustment will be announced and become effective on July 1, 2022), Half Moon Bay: $15.56 for large employers, $14.52 for small employers, Los Angeles City: $15.00 (a new CPI adjustment will be announced and become effective on July 1, 2022), Menlo Park: $15.25 (a new CPI adjustment will be announced and become effective on January 1, 2022), Milpitas: $15.65 (a new CPI adjustment will be announced and become effective on July 1, 2022), Novato: $15.77 for very large businesses (100 or more employees), $15.53 for large businesses (26 to 99 employees), and $15.00 for small employers (25 or fewer employees), Pasadena: $15.00 (a new CPI adjustment will be announced and become effective on July 1, 2022), San Francisco: $16.32 (a new CPI adjustment will be announced and become effective on July 1, 2022), Santa Monica: $15.00 (a new CPI adjustment will be announced and become effective on July 1, 2022), Santa Rosa: $15.85 (a new CPI adjustment will be announced and become effective on July 1, 2022), Sonoma: $16.00 for large employers (26 or more employees) and $15.00 for small employers (25 or fewer employees), Denver: $15.87 per hour, up $1.10 from the 2021 rate of $14.77 per hour, $5.15 (Employers subject to the Fair Labor Standards Act must pay the $7.25 Federal minimum wage). 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. WAC 296-128-532. Join/Renew Now and let SHRM help you work smarter. The Department may seek an order for payment of civil money penalties from a U.S. Department of Labor Administrative Law Judge where appropriate. $("span.current-site").html("SHRM China "); document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. Should higher education institutions apply the WMWA criteria in the same manner as state agencies? .manual-search ul.usa-list li {max-width:100%;} #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;} The phased in changes will be effective January 1 of each subsequent year. 3. The final rule updates the earnings thresholds necessary to exempt executive, administrative and professional employees from the Fair Labor Standards Act's (FLSA) minimum wage and overtime pay . This is a very fact specific question that should be asked of your assigned Labor and Personnel or Education Division AAG. In non-farm work, the permissible jobs and hours of work, by age, are as follows: Fourteen is the minimum age for most non-farm work. .usa-footer .grid-container {padding-left: 30px!important;} The Ombudsman annually evaluates enforcement activities and rates each agencys responsiveness to small entities. The final rule is effective Jan. 1, 2020 and isestimated toextend overtime protections to more than one million workers who are not currently eligible under federal law. 111-148), amended Section 7 of the FLSA, to provide a break time requirement for nursing mothers. 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