You will be redirected once the validation is complete. Large employers (fifty-one or more employees) must pay exempt employees at least two times the minimum wage to meet the minimum salary requirements. If other salary changes are needed, departments should process those actions in accordance withuniversity policies. 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 announced on September 30, 2022. It will continue to increase annually thereafter based on inflation. This is a 5.83 percent increase from the current 2021 minimum wage of $13.69 per hour. Mr. Pankratz has experience successfully representing employers in executive termination, non-compete and unfair competition disputes. 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). The Washington State minimum wage increases Saturday, reflecting inflation over the past year. For 2022, the wage for 14 and 15 year olds will be $12.32 per hour. g Due to an increase in the state's minimum wage, the minimum salary required for the administrative, professional and executive exemptions from overtime under state law increased to $796.17 per week on January 1, 2023. In 2023, small employers (one to no more than fifty employees) must pay exempt employees 1.75 times the minimum wage, meaning that exempt employees of small employers must earn at least $1,101.80 per week ($57,293.60 per year) to meet the minimum salary requirement to be exempt from overtime requirements. Each September, L&I uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (referred to as CPI-W) from the U.S. Bureau of Labor Statistics to determine the minimum wage for the following year. Human Resources will provide training and share best practices to guide supervisors through the impact of these changes. This means, for example, that a 50% (half-time) employee whose annualized salary is $120,000 would be overtime eligible because their actual, half-time salary would be $60,000, which is less than the new $65,484 threshold. 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. Small employers (1-50 employees) will have to pay at least 1.75 times the state minimum wage ($1,101.80 a week), and large employers (51 or more employees) will pay at least 2 times the minimum wage ($1,259.20 a week). Ms. Bannons employment law practice includes providing employers proactive advice and practical solutions to current or potential employee problems to manage risk related to discipline Ms. Fletcher represents employers in all aspects of employment claims and litigation in federal and state courts, at arbitration, mediation, and before administrative agencies, including matters involving wrongful termination, discrimination, sexual harassment, disability and religious accommodation, retaliation, wage and hour, and breach of contract claims. Federal law allows us to use to calculate salary threshold. Mandatory Arbitration Agreements Remain Valid in California, Antitrust Practitioners Expect Activity With Climate Issues. More information on the process and the civil service salary schedule will be available shortly. On September 30, 2022 the Washington State Department of Labor and Industries announced the new state minimum wage effective January 1, 2023: $15.74 per hour. Mr. Pankratz represents corporations and management in a myriad of employment-related and complex commercial matters, including litigation involving discrimination, retaliation, harassment, wage and hour, wrongful termination, ADA and FMLA leave issues, and other matters in state and federal courts and administrative agencies. The service requires full cookie support in order to view this website. Minimum Wage (2022) In keeping with the gradual increase in the State's minimum wage levels, the new tiered rates across the State, effective December 31, 2021, are listed below. The new hourly minimum, which applies to employees 16 years and older, will increase 80 cents per. 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. Exempt salary: As a result of the minimum wage increase for nonexempt employees, the minimum salary for white-collar workers who are exempt from overtime will increase as of January 1, 2023, as well. 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. Employees aged 14 to 15 years must earn at least $13.38 per hour. See new exemption . For additional information, visit Washington State Department of Labor and Industries Changes to Overtime Rules website and the Salary Threshold Implementation Schedule. Large employers with 51 or more employees must pay exempt employees a weekly salary of at least $1,259.20 ($65,478.40 per year). January 1, 2023 Employer with fifty or fewer employees - an amount not less than 1.75 times the state minimum wage prescribed in WA Statute 49.46.020 for a forty-hour workweek. . The changes are summarized below: To be classified as exempt from overtime under state law (Alaska Statute 23.10.055), bona fide administrative, professional and executive employees must satisfy certain salary and duties tests. If you would ike to contact us via email please click here. Seyfarth Synopsis: As they have each year since 2016, the minimum wage and exempt salary threshold will increase for certain New York employers effective December 31, 2021. This saying is often heard from Vigilants own Safety Manager, Manish Gooneratne. Tips: The minimum wage rates in both Seattle and SeaTac continue to be higher than the statewide rate in Washington. Details are available on the Department of Labor and Industries (L&I) Washington minimum wage webpage. Learn how Vigilant membership can help with your complex employment situations. GT's The Performance Review Episode 19: Is the Fight Over AB 51 5 Reasons Community Associations Need an Attorney That Specializes in New York Proposes Regulatory Review and Approval of Material Health CMS Issues Long-Awaiting Medicare Advantage RADV Final Rule, Preventing the Use of Cryptocurrencies to Evade Sanctions. With the state salary thresholds for exempt employees now a multiplier of the state minimum wage, one of the thresholds multipliers will rise on Jan. 1, 2023. See our Legal Guide, Noncompetition Agreements, for guidance on additional requirements in Washington. Critically, the nonexempt classification is not a reflection of the importance of a position. Given the steep increase in the minimum wage, the states salary requirements for exempt employees are also increasing significantly. Colorado. The effective date for the changes was July 1, 2020. Employees aged 14 to 15 years old must earn at least $13.38 per hour in 2023. The cities of Seattle and SeaTac also have higher minimum wage requirements that are increasing in 2023. 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 increased to $961.54 per week on January 1, 2023. Washington's minimum wage is $14.49 per hour, up from $13.69 per hour in 2021. All our faculty and staff, regardless of whether they are exempt or nonexempt, perform important work in support of our mission. Please enable cookies on your browser and try again. The city hasnt yet announced the 2023 rate for those employees. Please enable JavaScript on your browser and try again. This rate is subject to mandatory annual adjustments which are usually announced in October or early November. In 2023, small employers (one to no more than fifty employees) must pay exempt employees 1.75 times the minimum wage, meaning that exempt employees of small employers must earn at least $1,101.80 per week ($57,293.60 per year) to meet the minimum salary requirement to be exempt from overtime requirements. Small employers (with 1-50 employees) will have a more gradual phase-in schedule to give them additional time to comply with the new rules compared to large companies (51 or more employees). Thank you for suggesting a question for our next Q&A post! Sign up to receive email updateson the overtime employment rule changes and other wage matters. I am writing today about a change in state regulations that will affect many of our staff colleagues as we enter the new calendar year. The FLSA allows for exemptions from these overtime and minimum wage requirements for certain employees who work in administrative, professional and executive jobs (known as "exempt" employees). Using the 2023 minimum wage starting January 1, 2023, L&I calculated the salary thresholds for employers with 1-50 employees to be at least 1.75X the state minimum wage, or $1,101.80/week ($57,293 . For more information on overtime exemptions in Washington, see our Legal Guide, State Laws on the White Collar Exemption from Overtime. 2023 University of Washington | Seattle, WA, University of Washington Human Resources Home, Final candidate guide to COVID-19 vaccination requirement, HR Benefits, Analytics & Information Systems, Professional & Organizational Development, FLSA and WMWA overtime eligibility and exemption, Checklist Create professional staff temporary position, Department responsibility for pay equity review, Wage and salary setting for staff and student positions, Student hourly employee compensation and work hours limits, Total compensation statements for UW staff, WA State threshold for OT exempt employees will rise in 2023 by 24%. Before applying this information to a specific management decision, consult legal counsel. www.grsm.com is using a security service for protection against online attacks. 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 announced on September 30, 2022. Effective January 1, 2023, employees must earn $65,478.40 annually ($5,456.55 monthly) to be exempt from overtime, regardless of duties and responsibilities. Effective January 1, 2023 under the WMWA, the minimum actual gross salary a position can be paid and still remain overtime exempt increased from $1,014.30 per week to $1,259.20 per week ($65,484 per year or $5,457 per month). Their current minimum wage is $17.54 per hour. If an employee is covered by both federal and state law but doesn't meet both sets of tests, employers should consult with counsel to determine how they should classify the employee in that particular situation. 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. In addition, many of our staff colleagues perform duties that meet the laws exemptions for Executive, Administrative, or Professional positions. Locking Tik Tok? The L&I salary threshold will change annually through 2028. The specific minimum wage requirements for 2023, shown on the citys minimum wage webpage, will be: Employers are required to provide a written notice to each employee working in Seattle before any change in their wage rate or other terms of employment. How Modern Manufacturing Plants Can Protect Against Ransomware, FTC Will Host May 23, 2023, Workshop on Recyclable Claims and the Appellate Court Affirmed An Order Denying A Beneficiarys Request For An Overview of Why Class Action Privacy Lawsuits May Have Just Gotten Gold Dome Report Legislative Day 26 (2023).