Enter to open, tab to navigate, enter to select, Practical Law Practice Note Overview w-013-7477, https://content.next.westlaw.com/practical-law/document/I19eee08b287511e89bf099c0ee06c731/Minimum-Salary-Thresholds-for-Executive-Administrative-and-Professional-Exemptions-Under-State-Law-Chart-Overview?viewType=FullText&transitionType=Default&contextData=(sc.Default), Minimum Salary Thresholds for Executive, Administrative, and Professional Exemptions Under State Law Chart: Overview. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. The Focus HR team will be reaching out to all of our clients to go over these changes and how they may be impacted, but if you have any questions or concerns, please contact us. Here are the highlights and what employers should be aware of to start the New Year. If you live in a county with a special exempt threshold and do not see it listed, visit your district Department of Labor website to obtain accurate information. GovDocs, Inc. Moving Towards MOCRA Implementation: FDA Announces Industry DAO Deemed General Partnership in Negligence Suit over Crypto Hack IRS Updates Its List of Compliance Campaigns. The state's minimum wage is scheduled to increase on January 1, 2022 and varies based on employer size. Statement in compliance with Texas Rules of Professional Conduct. var temp_style = document.createElement('style'); The U.S. Department of Labor outlines the categories and the tests that must be met under the federal FLSA. You can find more answers to questions about these exemptions. 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. Exempt Employees: 2023 Minimum Salary Requirements The states minimum wage is scheduled to increase on January 1, 2022. If that amount were adjusted for inflation, it would nowbe $56,836 annually, McCutchen noted. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); Yes. By submitting this form you are agreeing to receive emails from Focus HR Inc. Privacy Policy | Business Health Insurance, Risk Mitigation The Overriding Key Advantage to HR Outsourcing, Maximizing ROI for Your Small Business: The Benefits of HR Outsourcing, The Ultimate Small Business Guide to 401(k) Retirement Plans, Nassau, Suffolk, and Westchester Counties: $1,125 per week, Remainder of the State (Except New York City): $990 per week (proposeda final decision is expected soon). And with holidays and vacations, not to mention employees working remotely, its not unusual for matters to be put off until the new year or for a project or two to fall through the cracks. The US Department of Labor issued a final ruling on the new salary threshold for salary exemption: $684 per week (equivalent to $35,568 per year). United States: SEC Staff Finds Safeguarding Policies and Procedures Value Billing and Its Importance for Law Firms, SEC Steps up Oversight of Crypto Exchanges. Overtime must be paid at one and a half times the employees regular rate of pay. 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. A Chart providing an overview of the minimum salary thresholds for the executive, administrative, and professional exemptions (also often referred to as EAP or white collar exemptions) under state wage and hour law. This change makes settlements harder to reach, McCutchen said. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); Beginning January 1, 2022, these employees must earn at least: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. If the employer makes deductions from an employees predetermined salary, i.e., because of the operating requirements of the business, that employee is not paid on a salary basis. If the employee is ready, willing and able to work, deductions may not be made for time when work is not available. With the calendar turning to 2022, workers in over two dozen states and localities could see a pay increase as a result of legislation raising applicable minimum wage or exempt salary thresholds. For the computer professional employee exemption, the employee may be paid by salary (as long as it is at least $684 per week) or by the hour (as long as it is at least $27.63 per hour). For example, an artist paid $350 for a picture that took 20 hours to complete meets the minimum salary requirement since the rate would yield $700 if 40 hours were worked. Merrill also noted that many employers are raising wages in response to labor shortages, "which cuts both ways in terms of what state legislatures might do," she said. 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. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} The employee must also meet the job duties test. Any legal analysis, legislative updates or other content and links should not be construed as legal or professional advice or a substitute for such advice. Virtual & Las Vegas | June 11-14, 2023. 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. Offering robust, year-over-year data, this survey will help you design competitive compensation plans that attract and retain high-performing employees. } The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. 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. In California, for example, the weekly salary threshold for the white-collar exemptions is calculated by doubling the state minimum wage and multiplying by 40 hours. If an employee earned wages at more than one rate of pay for the earning period, those rates must appear on the employees pay stub. However, the FLSA provides an exemption from minimum wage and overtime pay for employees who work as executive, administrative, professional and outside sales employees. An employer can change an employees rate of pay with advanced notice. [CDATA[/* >