Yes. National Law Review, Volume XII, Number 3, Public Services, Infrastructure, Transportation. 1-888-273-3274. Being paid on a "salary basis" means an employee regularly receives a predetermined amount of compensation each pay period on a weekly, or less frequent, basis. 25 states are raising their minimum wage in 2022. Note: In Colorado, an exempt employees salary generally must also be sufficient to satisfy the minimum wage for all hours worked in a workweek. California Supreme Court Lets It Stand That CDTFA Can Decide Who Is OFCCP Requires Federal Contractors to Implement Revised Voluntary DOJ Targets Health Care Fraud Schemes Exploiting COVID-19 Pandemic In EPA has issued an "order" permitting continued PFAS Montana and Tennessee Could Become Eighth and Ninth States to Enact Hunton Andrews Kurths Privacy and Cybersecurity. Yes, until the minimum wage reaches $15.00, different minimum wage rates will be in effect in the following areas of the state: (1) New York City, (2) Westchester County and Long Island, (3) the remainder of New York State. Litigating a wide variety of employment-related claims, including discrimination, harassment, 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. She noted that six 90-minute meetings have been scheduled with stakeholders from March 8 to April 6: three meetings with unions and worker advocates, plusthree more with industry groups, including one with SHRM. } } Employers must consider whether they have classified their employees appropriately and whether their employees are eligible for overtime under the new salary thresholds. Virtual & Las Vegas | June 11-14, 2023. "We can expect to see more states proposing increased salary cutoffs in 2022 as a result of the tightening labor market," Sheikh predicted. The federal Fair Labor Standards Act (FLSA) requires most businesses to pay employees 1 1/2 times their regular rate of pay for all hours worked beyond 40 in a workweek unless they fall under an exemption. 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. Members can get help with HR questions via phone, chat or email. Please confirm that you want to proceed with deleting bookmark. Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments, https://www.federalregister.gov/documents/2019/09/27/2019-20353/defining-and-delimiting-the-exemptions-for-executive-administrative-professional-outside-sales-and. The company is headquartered in Eagan, Minn. Speaking on March 29 in Washington, D.C., McCutchen predicted that the While nearly every employer must pay the New York State minimum wage, there are some very specific exceptions, which only apply to certain employees or employees of public entities. The department defined willfulness as 1) failing to follow advice from the Wage and Hour Division that conduct is not lawful or 2) failing to adequately inquire aboutwhether the conduct is in compliance with the FLSA. "Generally speaking, increased minimum wage rates tend to go hand in hand with increased minimum salary requirements for exempt employees," Sheikh explained. 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;}'; Yes. How high might it go? Colorado: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. Lastly, exempt salary thresholds are also increasing in some states. The following is a comprehensive list of the exempt status salary threshold by state. California also has the following new local minimum wages: Alameda: $15.00 (a new CPI adjustment will be announced and become effective on July 1, 2022), Belmont: $16.20 (a new CPI adjustment will be announced and become effective on January 1, 2022), Berkeley: $16.32 (a new CPI adjustment will be announced and become effective on July 1, 2022), Emeryville: $17.13 (a new CPI adjustment will be announced and become effective on July 1, 2022) (businesses located outside Emeryville that contract with the city and perform their services outside the city must comply with the living wage rate, which is $16.97), Fremont: $15.00 for small employers; $16.00 for large employers (a new CPI adjustment will be announced and become effective on July 1, 2022), Half Moon Bay: $15.56 for large employers, $14.52 for small employers, Los Angeles City: $15.00 (a new CPI adjustment will be announced and become effective on July 1, 2022), Menlo Park: $15.25 (a new CPI adjustment will be announced and become effective on January 1, 2022), Milpitas: $15.65 (a new CPI adjustment will be announced and become effective on July 1, 2022), Novato: $15.77 for very large businesses (100 or more employees), $15.53 for large businesses (26 to 99 employees), and $15.00 for small employers (25 or fewer employees), Pasadena: $15.00 (a new CPI adjustment will be announced and become effective on July 1, 2022), San Francisco: $16.32 (a new CPI adjustment will be announced and become effective on July 1, 2022), Santa Monica: $15.00 (a new CPI adjustment will be announced and become effective on July 1, 2022), Santa Rosa: $15.85 (a new CPI adjustment will be announced and become effective on July 1, 2022), Sonoma: $16.00 for large employers (26 or more employees) and $15.00 for small employers (25 or fewer employees), Denver: $15.87 per hour, up $1.10 from the 2021 rate of $14.77 per hour, $5.15 (Employers subject to the Fair Labor Standards Act must pay the $7.25 Federal minimum wage). div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} Former Wage and Hour Division Administrator Tammy McCutchen updated attendees of the SHRM Employment Law & Compliance Conference 2022about the salary threshold for white-collar exemptions in the proposed overtime rule due out soon. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} The salary threshold will then automatically be reset every three years starting October 3, 2023 based on the 10th percentile of wages in the exempt occupations in Pennsylvania, utilizing a Pennsylvania-specific data set. Employers with fewer than 26 employees must pay a salary of at least $1,120 in 2022 to qualify for the exemption. .manual-search ul.usa-list li {max-width:100%;} This blog does not provide legal, financial, accounting, or tax advice. To qualify for the overtime exemption, licensed physicians and surgeons must earn at least $91.07 per hour. $58,240 (employers with 25 or fewer employees), $62,400 (employers with 26 or more employees), $64,480 (All employers regardless of size), $58,511 (NYC, Nassau, Suffolk, Westchester), $55,341 (12/31/2022 for All other NY Workers), ~$50,740 (1.75 x Minimum Wage, All Employers 2022), ~$57,293.60 (1.75 x Minimum Wage, Employers with 1-50 Employees). For example, 16 part-time employees count as 16 employees. To qualify for the white-collar exemptions, employees must perform certain duties, be paid on a salary basis and meet a minimum salary threshold. $62,400 for employers with 26 or more employees; (1) $45,000 ($865.38/week) an exempt executive, administrative, or professional employee; $58,500 ($1,125/week) for employers in New York City. Note that if the employer had previously employed 11 or more persons at any point during the current or prior calendar year, the employer would have to pay the Large Employer rate throughout the current calendar year. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor. Starting with Alaska, exempt employees must be paid two times the state minimum wage for the first 40 hours worked each week, excluding board or lodging from the employer. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} 2023 Exempt Status Salary Threshold by City and State. part 541 with an effective date of January 1, 2020. The minimum wage for health care aides effective October 1, 2022, is $17.00 per hour in New York City, Long Island and Westchester. United States: SEC Staff Finds Safeguarding Policies and Procedures Value Billing and Its Importance for Law Firms, SEC Steps up Oversight of Crypto Exchanges. provide a subminimum wage for "an individual whose earning capacity is impaired by physical or mental deficiency, age, or injury." Next Steps: As of December 12, 2022, Alaska employers must pay workers with disabilities at least the state minimum wage of $10.34 per hour. The employee must also meet the job duties test. Many state and local wage rates have been increasing in phases each year to ultimately reach $15 an hour, and some have already reached or surpassed that rate. That exception is limited to employers who are exempt from federal overtime requirements, and who are subject to state wage order for miscellaneous industries. By the time the rule is fully implemented in 2028, a salaried exempt employee will have to be paid at least 2.5 times the state minimum wage. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. If that amount were adjusted for inflation, it would nowbe $56,836 annually, McCutchen noted. And $16.20 per hour for the remainder of New York State, effective December 31, 2022. The FLSA requires that most employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek. Worker Adjustment and Retraining Notification (WARN), Non-Profitmaking Institutions, Public Agencies, and Children's Camps (PDF). Isolated or inadvertent improper deductions will not result in loss of the exemption if the employer reimburses the employee for the improper deductions. $9.87 (unless the state's unemployment rate for 2021 exceeded 8.5%, in which case the current $9.65 rate will remain in effect for 2022) $9.30 (for . Employers with fewer than 26 employees must pay a salary of at least $1,120 in 2022 to qualify for the exemption. L&I now uses a multiplier of the state minimum wage to determine the minimum salary threshold. At the time, the DOL estimated that the $921/week threshold would make more than 4.2 million workers ineligible for a white-collar exemption and eligible for overtime pay. 2023: $54,132 2024: $62,920.L&I is using a multiplier of the state minimum wage to determine the minimum salary threshold.2. 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