HR will provide more information in the coming days, including supervisor guidance and direct communications to staff colleagues directly impacted. L&I determines the amount based upon a multiplier of the Washington state minimum wage and inflation, causing the final amount to potentially differ from published projected amounts. The National Law Review is a free to use, no-log in database of legal and business articles. 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved. HR will reclassify those employees as "nonexempt" on January 1, 2023. Mar 02, 2023 Please enable JavaScript on your browser and try again. HRS will assist colleges/areas in evaluating the impact of these changes. Washington House . University of Washington School of Law, J.D. These changes affect executive, administrative, and professional (EAP) workers as well as outside salespeople and computer professionals across all industries in Washington. Confidentiality and Non-Disparagement Agreements with Non-Supervisory USCIS Confirms It Will Accept Employment-Based I-485 Applications New Jersey Enacts Bill of Rights for Temporary Workers, DOJ Implements Nationwide Voluntary Self-Disclosure Program. This means that the universitys Executive, Administrative or Professional staff members who earn less than $65,478.40 as of January 1, 2023along with tens of thousands of similarly situated employees across the statewill no longer be exempt. HR will reclassify those employees as nonexempt on January 1, 2023. Before classifying and treating any employee as exempt from overtime, employers should confirm that the employee satisfies all applicable tests for overtime exemption under federal and state laws. 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. Keep in mind that reclassification means more than just . Employers may want to consult legal counsel about how this rule may impact them. All our faculty and staff, regardless of whether they are exempt or nonexempt, perform important work in support of our mission. 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. 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. Under state law, 14 and 15-year-olds can be paid 85% which will be $13.38 in 2023. Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. Exempt computer professionals: The minimum salary rate for exempt computer professionals who are paid hourly will also increase as of January 1, 2023. This increase represents an increase of $1.25 per hour, or an 8.66 percent increase year over year. For more information on overtime exemptions in Washington, see our Legal Guide, State Laws on the White Collar Exemption from Overtime. The Washington State Labor and Industries (L&I) announced the minimum salary an employee must earn to be exempt from overtime. Changes to these rules mean some employers might have to provide overtime, minimum wage, and paid sick leave to some employees who were previously treated as exempt. It will continue to increase annually thereafter based on inflation. The state's minimum wage increased on January 1, 2023. If other salary changes are needed, departments should process those actions in accordance withuniversity policies. In 2019, at the direction of Governor Inslee, the Washington State Department of Labor & Industries (L&I) published a new schedule of minimum salary thresholds through January 1, 2028. The Washington state overtime threshold for exempt jobs as of January 1, 2021 is set by state rule at 1.75 times the state minimum wage and will be $958.38 per week. See new exemption . Licenses for Exports to Are You Ready for the UPC? Computer software employees may be paid on an hourly or a salary basis in order to qualify for exemption from California's overtime requirements. Accepting Cryptocurrency and Digital Asset Donations: What Charities Need to Know. The hearings were held in July and August 2019 in Tumwater, Seattle, Bellingham, Ellensburg, Kennewick, Spokane and Vancouver. Employers Beware: Non-Disparagement and Confidentiality Covenants in Consultation Paper On Review of Corporate Governance Norms For A High Californias War On The Fast-Food Industry Continues. 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). 1/1/2023 . The list does not include the city/county thresholds for California. 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. Given the steep increase in the minimum wage, the states salary requirements for exempt employees are also increasing significantly. Ms. Fletcher advises employers on personnel You are responsible for reading, understanding and agreeing to the National Law Review's (NLRs) and the National Law Forum LLC's Terms of Use and Privacy Policy before using the National Law Review website. Chris Edison. 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. Washington employers should begin following the new Washington rules because the state threshold will become more favorable to employees at $821.40 a week (1.5x the state minimum wage) for small businesses and approximately $958.30 per week (1.75x the state . This is a 5.83 percent increase from the current 2021 minimum wage of $13.69 per hour. The annually increasing salary thresholds specifically apply to the many university positions within the Executive, Administrative, and Professional exemptions. 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. Tips: The minimum wage rates in both Seattle and SeaTac continue to be higher than the statewide rate in Washington. Seattle and the City of SeaTac have minimum wage rates higher than the state minimum. Thank you for suggesting a question for our next Q&A post! When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. Here are some key things to know for both federal exemptions and state exemptions, along with some state-specific changes for 2023. The Supreme Court Grants Petition to Decide Constitutionality of CFPB Understanding Your Law Firms Value Proposition, Spike in Migrants Crossing U.S.-Canada Border Raising Concerns, Bill to Amend the Gramm-Leach-Bliley Act Introduced to Congress, Energy & Sustainability Washington Update March 2023. We cannot become your lawyers or represent you in any way unless (1) we know that doing so would not create a conflict of interest with any of the clients we represent, and (2) satisfactory arrangements have been made with us for representation. The change in the state minimum wage also increases the new state minimum salary thresholds for Overtime Exempt Employees. Check outtheovertime rulemaking documents. This same threshold applies to part-time employees; it is not pro-rated for employees who are less than full-time. Can Nonprecedential Decisions Be Relied Upon? Starting Monday, December 26, 2022, they will need to track the hours that they work following the established time tracking procedure in their department. NLRB Places New Limitations on Confidentiality and Non-Disparagement Settlement Will Benefit Many Aging-Out Children in the Green Card SEC Commissioner Discusses Reform to Regulation D, Massachusetts AG Settles Enforcement Action Against Auto Lender. Our employment attorneys and workplace safety experts will take a look at your question and possibly select it for our next post. g How you can stay informedCheck out the overtime rules fact sheet. Under certain state laws the following statements may be required on this website and we have included them in order to be in full compliance with these rules. Although the federal minimum wage has been $7.25 for years, 29 states and Washington, D.C., have higher rates, and many new wage hikes took effect this year. The new hourly minimum, which applies to employees 16 years and older, will increase 80 cents per. Exempt computer professionals may be paid based on either the exempt salary threshold ($52,743.60 annually for 2022) or by the hour. A new 2023 version of the required workplace poster is available online. Mr. Pankratz has extensive experience representing employers both locally and nationally on various employment Brenda Bannon is of counsel in the Seattle office of Ogletree Deakins and joined the firm in March 2019. 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. As a result of the change in the states minimum wage, the minimum salary required for these exemptions under state law increased to $868 per week (twice the minimum wage for a 40-hour week) on January 1, 2023. 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. . To be classified as exempt from New York's overtime requirements, executive and administrative employees must meet minimum salary requirements and satisfy certain duties tests. An explanation of this requirement and a sample notice form can be found on Seattles wage theft ordinance webpage. Before applying this information to a specific management decision, consult legal counsel. The National Law Review - National Law Forum LLC 3 Grant Square #141 Hinsdale, IL 60521 Telephone (708) 357-3317 ortollfree(877)357-3317. 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. Her practice extends to private sector clients. 2023 Exempt Status Salary Threshold by City and State. Colorado. Large employers (fifty-one or more employees) must pay exempt employees at least two times the minimum wage to meet the minimum salary requirements. The salary rates may vary depending on the city/county where an employee resides/works in California. The state anticipates that by 2028, nearly 260,000 positions that were previously exempt under the Minimum Wage Act will be impacted. 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: