Such employees include those who: work in communications or transportation; regularly use the mails, telephones, or telegraph for interstate communication, or keep records of interstate transactions; handle, ship, or receive goods moving in interstate commerce; regularly cross State lines in the course of employment; or work for independent employers who contract to do clerical, custodial, maintenance, or other work for firms engaged in interstate commerce or in the production of goods for interstate commerce. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. The site is secure. The list does not include the city/county thresholds for California. Virtual & Washington, DC | February 26-28, 2023. But employers in the state will still need to stay informed about movements at the federal level. Generally, for purposes of minimum wage and overtime payment, each workweek stands alone; there can be no averaging of 2 or more workweeks. Most of the information is of the kind generally maintained by employers in ordinary business practice and in compliance with other laws and regulations. An official website of the United States government. In addition to the salary, half the regular rate, or $4.80, is due for each of the 10 overtime hours, for a total of $528 for the week. Flagstaff: $12.80 per hour: This is a $0.65 increase from the 2021 rate of $12.15 per hour. The phased in salary thresholds can be found at WAC 296-128-545. SHRM Employment Law & Compliance Conference, regardless of what happens to the now-blocked federal overtime rule, raising salaries for exempt employees above the threshold, Californias Exempt Salary Threshold Will Rise Regardless of Blocked Overtime 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, U.S. Companys Mandatory Video Surveillance Violated Dutch Rights. Please confirm that you want to proceed with deleting bookmark. Generally, the regular rate includes all payments made by the employer to or on behalf of the employee (except for certain statutory exclusions). What is the overtime status of an employee who works full-time in a nonexempt position, but also teaches classes or advises on the side? 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. Example: An employee paid $8.00 an hour works 44 hours in a workweek. 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. invited to join. If the salary is for a half month, it must be multiplied by 24 and the product divided by 52 weeks to get the weekly equivalent. Note: in limited circumstances, the salary threshold does not apply to certain professionals (e.g., teachers, doctors, and lawyers) because those professionals are considered exempt under the WMWA based on their duties alone. The phased in changes will be effective January 1 of each subsequent year. In that case, an additional $4.00 is due for each of the 20 overtime hours for a total of $560 for the week. As noted above, the weekly standard salary level will continue to increase each year over the next eight years. For classified employees and those employees exempt from civil service the salary threshold discussed in question #1 should be applied in order to exempt the position. The newly published FLSA regulations that become effective January 1, 2020, make the following changes: The weekly salary threshold level is raised from $455 per week ($23,660 per year) to $684 per week ($35,568 per year); The total compensation needed to exempt highly compensated employees is increased from $100,000 annually to $107,432 annually; 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. .cd-main-content p, blockquote {margin-bottom:1em;} Split level pay ranges are salary ranges in which the new WMWA salary threshold falls somewhere in the current salary range. The fate of the federal overtime rule remains uncertain, but New York employers need to be aware of state-level changes that spell out salary threshold increases for the administrative and. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. A monthly salary should be multiplied by 12 and the product divided by 52. 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,. 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. Deductions made from wages for such items as cash or merchandise shortages, employer-required uniforms, and tools of the trade, are not legal to the extent that they reduce the wages of employees below the minimum rate required by the FLSA or reduce the amount of overtime pay due under the FLSA. Starting in 2021, the state salary threshold will exceed the federal threshold. 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. Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional, computer and outside sales employees. Special salary levels would apply to certain U.S. territories and an updated base rate would apply to employees in the motion-picture industry. Need help with a specific HR issue like coronavirus or FLSA? In such a case, the Department will not seek the same back wages and liquidated damages on that employees behalf. The equal pay provisions of the FLSA prohibit sex-based wage differentials between men and women employed in the same establishment who perform jobs that require equal skill, effort, and responsibility and which are performed under similar working conditions. Filing a comment with the Ombudsman neither extends the maximum time period for contesting the assessment of a penalty, nor takes the place of filing the response required to secure an administrative hearing on a penalty. It is up to the agency to apply the new salary basis test so that employees would switch from overtime eligible to overtime exempt mid-pay range. Employers are required to provide a reasonable amount of break time to express milk as frequently as needed by the nursing mother. Employees have to meet both the threshold salary test and the duties test to be considered overtime exempt. WAC 296-128-533(1)(a). 7. For represented positions, refer to the appropriate collective bargaining agreement to ensure required notifications occur when making changes to an employees overtime status. Minors 16 years and older may perform any job, whether hazardous or not, for unlimited hours; Minors 14 and 15 years old may perform any nonhazardous farm job outside of school hours; Minors 12 and 13 years old may work outside of school hours in nonhazardous jobs, either with a parents written consent or on the same farm as the parent(s); Minors under 12 years old may perform jobs on farms owned or operated by parent(s), or with a parents written consent, outside of school hours in nonhazardous jobs on farms not covered by minimum wage requirements. What happens to employees in positions assigned to split level pay ranges when their salary exceeds the new WMWA salary threshold? Workweek - A workweek is a period of 168 hours during 7 consecutive 24-hour periods. Please contact your assigned AAG for analysis. Additionally, 5 states are increasing the minimum salary requirement for overtime exemption on January 1, 2022. 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). Does the paid sick leave under WMWA apply to an employee whose primary duty is teaching i.e. The FLSA does not provide wage payment or collection procedures for an employees usual or promised wages or commissions in excess of those required by the FLSA. If you are represented, employers and employees should reviewcollective bargaining agreements for specific requirements concerning work period designations and overtime eligibility. Otherwise they remain overtime exempt. 2022: $15.00: $1,200: $5,200: $62,400: In addition, academically oriented youths enrolled in an approved Work-Study Program (WSP) may be employed during school hours. The states minimum wage is scheduled to increase on January 1, 2022. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. Sample language In Washington, employees must satisfy certain salary and duties tests to be classified as exempt from overtime under state law. The .gov means its official. 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. Regulations governing child labor in non-farm jobs differ somewhat from those pertaining to agricultural employment. It does not matter if the employee is working full-time or part-time. What's the Overtime Threshold? 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. If you have questions on whether a certain type of work is restricted, or who is eligible for a homework certificate, or how to obtain a certificate, you may contact the local WHD office. 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. Not necessarily. Piece rate - The regular rate of pay for an employee paid on a piecework basis is obtained by dividing the total weekly earnings by the total number of hours worked in that week. 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. Nonexempt employeesmust be paid time and a half for any hours worked more than 40 in a workweek. Agency's Targets In December, the DOL announced it had plans to revisit the salary threshold for "white-collar" exempt employees under the FLSA. 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. Hours Worked - Covered employees must be paid for all hours worked in a workweek. These provisions, as well as other statutes prohibiting discrimination in employment, are enforced by the Equal Employment Opportunity Commission. $11.00. WMWA exempts certain kinds of covered employees from its requirements, including bona fide Executive, Administrative, and Professional (EAP) workers. 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. Beginning January 1, 2022, these employees must earn at least: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. In many cases, the state criteria are harder to meet than the federal criteria. 1/1/2022. The overtime threshold is a salary level used to determine which employees are . Was this article useful? WAC 296-128-532. 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. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { Your session has expired. Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. } Also, the FLSA does not limit the number of hours in a day or days in a week an employee may be required or scheduled to work, including overtime hours, if the employee is at least 16 years old. When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. Minors 14 and 15 years old may work outside school hours in various nonmanufacturing, nonmining, nonhazardous jobs under the following conditions: no more than 3 hours on a school day, 18 hours in a school week, 8 hours on a non-school day, or 40 hours in a non-school week. Who is affected by the Fair Labor Standards Act? 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. 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