As of today, that salary minimum is $684 per week ($35,568 per year); the agency is expected to seek an increase to $900-1000 per week, somewhere in the $50,000 per annum range. $11.00. Exemptions from Both Minimum Wage and Overtime Pay. 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. Hourly rate (regular pay rate for an employee paid by the hour) - If more than 40 hours are worked, at least one and one-half times the regular rate for each hour over 40 is due. 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. Not necessarily. The proposal is expected to be issued in the near future. Coaches are exempt under the professional exemption, when their primary duty is teaching student athletes how to perform their sport. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. 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. Also, work may not begin before 7 a.m., nor end after 7 p.m., except from June 1 through Labor Day, when evening hours are extended to 9 p.m. Partial overtime pay exemptions apply to employees engaged in certain operations on agricultural commodities and to employees of certain bulk petroleum distributors. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. Employees of firms which are not covered enterprises under the FLSA still may be subject to its minimum wage, overtime pay, recordkeeping, and child labor provisions if they are individually engaged in interstate commerce or in the production of goods for interstate commerce, or in any closely-related process or occupation directly essential to such production. The list does not include the city/county thresholds for California. For more information, see WAC 357-28-240. How can employers avoid salary compression when raising the minimum salary for exempt employees under the revised overtime regulations? 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. To be classified as exempt from overtime under state law, administrative, professional, and executive employees must satisfy certain salary and duties tests and receive a salary that exceeds 3000 times the state minimum wage. Any enterprise that was covered by the FLSA on March 31, 1990, and that ceased to be covered because of the revised $500,000 test, continues to be subject to the overtime pay, child labor and recordkeeping provisions of the FLSA. vacation, holiday, severance, or sick pay; meal or rest periods, holidays off, or vacations; a discharge notice, reason for discharge, or immediate payment of final wages to terminated employees. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. A coach will not qualify for the exemption if their primary duties are recruiting students to play sports or visiting high schools to conduct student interviews. The salary threshold for the FLSA's overtime exemption would have increased to $47,476 from $23,660 on Dec. 1. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. 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 . Specifically, under WMWA rules an employee will be considered to be paid on a salary basis if the employee regularly receives for each pay period of one week or longer (but not to exceed one month) a pre-determined monetary amount (the salary) consisting of all or part of his or her compensation, which amount will not be less than what is required to be paid pursuant to WAC 298-128-510 through 295-128-530. In Washington, employees must satisfy certain salary and duties tests to be classified as exempt from overtime under state law. 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. p.usa-alert__text {margin-bottom:0!important;} 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." invited to join. California. May 2022 The United States Department of Labor ("DOL") is expected to propose a new salary threshold for various overtime exemptions under the Fair Labor Standards Act ("FLSA"). The phased in changes will be effective January 1 of each subsequent year. $(document).ready(function () { These provisions, as well as other statutes prohibiting discrimination in employment, are enforced by the Equal Employment Opportunity Commission. } The new proposal is likely to be issued in the near future and could be issued as early as this month. Members can get help with HR questions via phone, chat or email. The Department may file suit on behalf of employees for back wages, an equal amount in liquidated damages, and civil money penalties where appropriate. To ensure your organization is aware of the latest minimum wage requirements, please check out our breakdown by state and locality. Beginning January 1, 2022, these employees must earn at least: $50 per hour (for all hours worked); or A monthly salary of $8,679.16; and An annual salary of $104,149.81. The FLSA provides for the employment of certain individuals at wage rates below the statutory minimum. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. $("span.current-site").html("SHRM China "); The Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) administers and enforces the FLSA with respect to private employment, State and local government employment, and Federal employees of the Library of Congress, U.S. Employers are required to provide reasonable break time for an employee to express breast milk for her nursing child for one year after the childs birth each time such employee has need to express the milk. 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. An employee whose primary duty is in an overtime eligible position will carry that eligibility over to the nonexempt assignment, while an employee whose primary duty is in an overtime exempt position can perform work that would be overtime eligible without losing the exemption. L&I also updated its EAP duties tests to more closely align with the federal standards. 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. Also included is any additional time the employee is allowed (i.e., suffered or permitted) to work. Employers are not required under the FLSA to compensate nursing mothers for breaks taken for the purpose of expressing milk. whose annual gross volume of sales made or business done is not less than $500,000 (exclusive of excise taxes at the retail level that are separately stated); or, is engaged in the operation of a hospital, an institution primarily engaged in the care of the sick, the aged, or the mentally ill who reside on the premises; a school for mentally or physically disabled or gifted children; a preschool, an elementary or secondary school, or an institution of higher education (whether operated for profit or not for profit); or, their cash wages from one employer in calendar year 2010 are at least $1,700 (this calendar year threshold is adjusted by the Social Security Administration each year); or. Fair Labor Standards Act (FLSA) guidance Learn about the FLSA, a federal law which establishes minimum wage, overtime pay eligibility, and recordkeeping affecting full-time and part-time workers. WHD does not consider filing of a comment with the Ombudsman as a factor in determining how to resolve issues raised during a compliance action. Wages required by the FLSA are due on the regular payday for the pay period covered. This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. If an employees tips combined with the employers direct wages of at least $2.13 an hour do not equal the minimum hourly wage, the employer must make up the difference. Seattle: $17.27 per hour (up from $16.69) for employers with more than 500 employees and for employers with fewer than 500 employees that dont pay for benefits and $15.75 per hour for employers with 500 or fewer employees that pay tips and benefits (up from $15.00 per hour). 6. If the employee works 50 hours, the regular rate is $9.60 ($480 divided by 50 hours). Nonexempt workers must be paid overtime pay at a rate of not less than one and one-half times their regular rates of pay after 40 hours of work in a workweek. 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;}'; Nondiscretionary bonuses and incentive payments (including commissions) paid on an annual or more frequent basis may be used to satisfy up to 10 percent of the standard salary level. The employee is entitled to at least one and one-half times $8.00, or $12.00, for each hour over 40. 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. Not necessarily. Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. In a regulatory agenda published on December 10, the Department of Labor announced its intention to review and update Fair Labor Standards Act regulations regarding the overtime threshold.. Find out more about the announcement and what it could mean for your organization in 2022. If you are represented, employers and employees should reviewcollective bargaining agreements for specific requirements concerning work period designations and overtime eligibility. [CDATA[/* >