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. Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments, Handy Reference Guide to the Fair Labor Standards Act, Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), Executive, administrative, and professional employees (including teachers and academic administrative personnel in elementary and secondary schools), outside sales employees, and employees in certain computer-related occupations (as defined in DOL regulations), Employees of certain seasonal amusement or recreational establishments, Public agency fire departments and police departments may establish a work period ranging from 7 to 28 days in which overtime need only be paid after a specified number of hours in each work period, https://www.dol.gov/agencies/whd/youthrules, https://www.dol.gov/agencies/whd/flsa#cmp, Contract Work Hours and Safety Standards Act, Migrant and Seasonal Agricultural Worker Protection Act. What is the salary requirement for part-time salaried workers? Employees have to meet both the threshold salary test and the duties test to be considered overtime exempt. The new salary threshold is $958.30 per week meaning that if the position calls for the employee to work 40 weeks out of the year, then the ability to exempt the position from WMWA would depend on whether or not the employees weekly salary exceeds $958.30 per week. Agency's Targets In December, the DOL announced it had plans to revisit the salary threshold for "white-collar" exempt employees under the FLSA. p.usa-alert__text {margin-bottom:0!important;} In no case may the regular rate be less than the minimum wage required by the FLSA. 541.602(a). For employees with multiple appointment types with the same employer, it is sometimes unclear which position is their primary duty for purposes of determining exempt or nonexempt status. To be classified as exempt from New Yorks overtime requirements, executive and administrative employees must meet minimum salary requirements and satisfy certain duties tests. All employees that hold positions determined to be covered under the mandatory overtime provisions of the FLSA are covered. It depends. 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. Split level pay ranges are salary ranges in which the new WMWA salary threshold falls somewhere in the current salary range. In such a case, the Department will not seek the same back wages and liquidated damages on that employees behalf. Las Cruces: $11.50 per hour for nontipped employees and $4.60 per hour for tipped employees. In addition, there are other specialized rules which apply in higher education settings, as discussed in number 4 below. 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,. Postal Service, Postal Rate Commission, and the Tennessee Valley Authority. In addition, the FLSAs general requirement that the employee must be completely relieved from duty or else the time must be compensated as work time applies. The weekly standard salary level will continue to increase each year over the next eight years. For an hourly part-time employee - what happens if they dont work the same number of hours each week and some weeks they are below the salary threshold and some weeks they are above it? Do academic advisors at community colleges qualify for exemption from minimum wage and overtime requirements under WMWA? 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 the employee works 50 hours, the regular rate is $9.60 ($480 divided by 50 hours). To illustrate, suppose an employees hours of work vary each week and the agreement with the employer is that the employee will be paid $480 a week for whatever number of hours of work are required. Because exemptions are generally narrowly defined under the FLSA, an employer should carefully check the exact terms and conditions for each. Special salary levels would apply to certain U.S. territories and an updated base rate would apply to employees in the motion-picture industry. 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 salary threshold to qualify for exemption is $958.30 per week under WMWA. Employers who violate the child labor provisions of the FLSA may be subject to civil money penalties. Unlike the federal law, WMWA does not include a highly compensated employees (HCE) standard. A new rate increase will be announced and be effective on July 1, 2022. The FLSA is enforced by the U.S. Office of Personnel Management for employees of other Executive Branch agencies, and by the U.S. Congress for covered employees of the Legislative Branch. 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). The salary threshold test should be applied to the pre-determined salary set by the salary schedule without regard to potential furloughs that may arise. For all hours worked in excess of 40 during each work week, employees will receive overtime at the rate of one and one-half times the employees regular rate (WAC 357-28-260). You have successfully saved this page as a bookmark. Employees could switch from overtime eligible to overtime exempt once their salary exceeds the new salary threshold, provided employees duties also meet the WMWA exemption criteria. In many cases, the state criteria are harder to meet than the federal criteria. A new rate increase will be announced and be effective on July 1, 2022. $(document).ready(function () {
Remedies may be recovered through administrative procedures, litigation, and/or criminal prosecution. 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. $(document).ready(function () {
Regulations governing child labor in non-farm jobs differ somewhat from those pertaining to agricultural employment. Not necessarily. Pay for the week would be $320 for the first 40 hours, plus $48.00 for the four hours of overtime - a total of $368.00. Under the WMWA, the standard salary threshold is higher and more favorable to the worker. 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. Employers seeking to classify employees as exempt from overtime should ensure employees meet both federal and state exemption criteria. 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. The list does not include the city/county thresholds for California. 14. The WMWA rules state that an employee who otherwise meets the salary basis requirements shall not be disqualified from the exemption if that public employee is paid according to a pay system that is established by statute, ordinance, regulation or by a policy or practice established according to the principles of public accountability under which the employee accrues personal leave (annual, vacation etc.) The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments. 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"). Employers who have willfully violated the law may be subject to criminal penalties, including fines and imprisonment. All overtime-eligible employees must fill out aTime and Attendance Record [.xlxs]in order to comply with FLSA standards. Revised September 2016. WAC 296-128-533(1)(a). Under the states exemption for highly technical computer employees, the employee may be paid by salary (at least $865.38 per week in 2022) or by the hour (under a state proposal, the minimum hourly rate would be $28.92 in 2022). HR professionalsmust knowhow to determine overtime eligibilityfor each employee. Covered, nonexempt workers are entitled to a minimum wage of $7.25 per hour effective July 24, 2009. What happens to employees in positions assigned to split level pay ranges when their salary exceeds the new WMWA salary threshold? But employers in the state will still need to stay informed about movements at the federal level. Members can get help with HR questions via phone, chat or email. An exempt employee must earn a salary of at least 1.75 times the minimum wage, or $958.30 a week ($49,831.60/year) to maintain the exemption. }
Also prohibited are partial displacements such as reducing employees hours, wages, or employment benefits. Note that there are special rules for tipped employees, who may be paid up to $3.00 per hour less than the minimum wage if the employee receives at least the minimum wage for all hours worked. Also, employees must retain all of their tips, except to the extent that they participate in a valid tip pooling or sharing arrangement. 2022 Governor's proposed supplemental budget, 2021 Governor's proposed supplemental budget, 2020 Governor's proposed supplemental budget, 2023-25 operating and transportation budget instructions, 2021-23 operating, transportation and capital budget instructions, Fiscal impact of ballot measures & proposed legislation, 2021 general election ballot fiscal information, State Administrative & Accounting Manual (SAAM), Contact Facilities Oversight and Planning staff, Facilities Portfolio Management Tool (FPMT), Bill Enrollment and Agency Request System (BEARS), Results through Performance Management System (RPM), Fair Labor Standards Act (FLSA) & Washington Minimum Wage Act (WMWA), Washington Management Service (WMS) coordinator roles and meetings, Furlough and layoff information for employers, Workforce diversity, equity and inclusion. Otherwise they remain overtime exempt. 1/1/2021. 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 $107,432 annually; See WAC 296-128-533(1)(c). Another way to compensate pieceworkers for overtime, if agreed to before the work is performed, is to pay one and one-half times the piece rate for each piece produced during the overtime hours. To be classified as exempt from overtime under state law, administrative, professional, and executive employees must satisfy certain salary and duties tests and receive a salary that exceeds 3000 times the state minimum wage. In lieu of litigation, the Department may seek back wages and liquidated damages, through settlements with employers. The following examples are based on a maximum 40-hour workweek applicable to most covered nonexempt employees. Maine To see minimum wage on a state-by-state basis, click here. var temp_style = document.createElement('style');
The Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) administers and enforces the FLSA with respect to private employment, State and local government employment, and Federal employees of the Library of Congress, U.S. The top employee benefits companies are focusing on Dive Insight: Plans to raise the FLSA white-collar exemption threshold have been in the works for more than a year. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} }); if($('.container-footer').length > 1){
The FLSA provides for the employment of certain individuals at wage rates below the statutory minimum. Albuquerque: $11.50 for employees without medica/childcare benefits, $10.50 for employees with medical/childcare benefits, and $6.90 for tipped workers, effective 1/1/2022. 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). Agencies are responsible for determining whether a workers job duties and salary meet the requirement to be overtime exempt under WMWA. 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. Also included are individuals whose earning or productive capacity is impaired by a physical or mental disability, including those related to age or injury, for the work to be performed. Nondiscretionary bonuses and incentive . $('.container-footer').first().hide();
Need help with a specific HR issue like coronavirus or FLSA? On December 31, 2021, the minimum wage is increasing in every region except New York City. The exemptions provided by FLSA Section 13(a)(1) apply only to "white-collar" employees who meet the salary and duties tests set forth in the Part 541 regulations. When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. If in the future the employer requires a furlough of less than one week, it will destroy the salary basis for that workweek if the employee performs work. If you are represented, employers and employees should reviewcollective bargaining agreements for specific requirements concerning work period designations and overtime eligibility. $12.00. . Employers with fewer than 50 employees are not subject to the FLSA break time requirement if compliance with the provision would impose an undue hardship. Employees considered exempt from WMWAs overtime requirements must meet both the threshold salary test (using the new increased salary basis threshold above in question #1) and the duties test of a particular position. 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. More detailed information is available by calling 1-800-669-4000 or visitingwww.eeoc.gov. Please contact your assigned AAG for analysis. The phased in changes will be effective January 1 of each subsequent year. While details of the 2022 proposed changes are forthcoming, organizations should prepare now to address pending challenges and associated opportunities. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. 541.710(a). Will employees have to meet both the threshold salary test AND the duties test to be considered overtime exempt under the WMWA? 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 . Overtime Non-exempt employees must be paid overtime for hours worked in excess of 40 in a single workweek (a workweek can be any seven consecutive 24-hour periods). The answer to this question is fact-specific and requires analysis of the positions primary duties under the administrative exemption of WMWA. All employees who work for the covered employer, regardless of work site, are counted when determining whether this exemption may apply. 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. Arkansas. Flagstaff: $12.80 per hour: This is a $0.65 increase from the 2021 rate of $12.15 per hour. L&I also updated its EAP duties tests to more closely align with the federal standards. Where there are differences between the state and federal overtime rules, the employer must follow the rule that is most favorable to the worker. For hourly computer professionals, L&Is new salary threshold is $47.92 per hour. However, some States do have laws under which such claims (sometimes including fringe benefits) may be filed. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) {
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Meeting the salary threshold doesn't automatically make an employee exempt from overtime pay; the employee's job duties also must primarily involve executive, administrative or professional duties as defined by the regulations. Does L&I hold the same opinion under the WA Minimum Wage Act? The .gov means its official. 9. 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. By 2028 the annual salary threshold will be $78,624.00. Please log in as a SHRM member. "It's a long shot that the DOL would enforce the rule retroactively," Jones said, "but if it did, the burden would be on employers to show the hours employees worked.". The FLSA provides that DOL may seek a U.S. District Court order to prevent the shipment of the affected goods. The provisions include restrictions on hours of work for minors under 16 and lists of hazardous occupations orders for both farm and non-farm jobs declared by the Secretary of Labor to be too dangerous for minors to perform. }
L&I Administrative Policy ES.A.9.5; WAC 296-128-530(2)(a). 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. 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. Minimum Wages Are On the Rise in Several States. Such employment is permitted only under certificates issued by WHD. Send request toState HRClassification and Compensation . 19. 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. The records do not have to be kept in any particular form and time clocks need not be used. Generally, a 2-year statute of limitations applies to the recovery of back wages and liquidated damages. The FLSA overtime rule determines whether employees are eligibleor exemptfor overtime pay. Among these are: More detailed information on the FLSA and other laws administered by WHD is available by calling our toll-free help line 1-866-4US-WAGE (1-866-487-9243). Your session has expired. In addition, academically oriented youths enrolled in an approved Work-Study Program (WSP) may be employed during school hours. 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. $50,000 per year ($961.54 per week) If highly technical computer professionals are paid on an hourly basis and meet the duties requirements, they must be paid at least $31.41 per hour It's also worth noting that Colorado's standard threshold will increase in 2024, with an indexed increase slated for 2025. In Washington, employees must satisfy certain salary and duties tests to be classified as exempt from overtime under state law. Please contact your assigned AAG for assistance with questions involving the impact of multiple appointment types on an employees overtime status. ]]>*/, New: Interactive Handy Reference Guide to the Fair Labor Standards Act (PDF), (For best printout, see the PDF version.) Fair Labor Standards Act Effective Date of Policy: 03/01/2021 Next Scheduled Review: 04/01/2022 . [CDATA[/* >