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; The above matters are for agreement between the employer and the employees or their authorized representatives. In lieu of litigation, the Department may seek back wages and liquidated damages, through settlements with employers. Non-exempt 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. vacation, holiday, severance, or sick pay; meal or rest periods, holidays off, or vacations; a discharge notice, reason for discharge, or immediate payment of final wages to terminated employees. The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. 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. The FLSA provides for the employment of certain individuals at wage rates below the statutory minimum. The regular rate of pay for that week is $405 divided by 45, or $9.00 an hour. The frequency of breaks needed to express milk as well as the duration of each break will likely vary. Currently, the FLSA's salary threshold is $35,568, but some states have a higher cutoff for exempt workers. 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). As a result, employers with 26 or more employees must pay a salary of at least $1,200 per week beginning January 1, 2022 to qualify for the exemption. Join/Renew Now and let SHRM help you work smarter. over the applicable FLSA overtime threshold in the applicable FLSA work period. The piece rate must be the one actually paid during nonovertime hours and must be enough to yield at least the minimum wage per hour. Special salary levels would apply to certain U.S. territories and an updated base rate would apply to employees in the motion-picture industry. under the H-1C provisions, provides for the enforcement of employment conditions attested to by employers in disadvantaged areas employing H-1C temporary alien nonimmigrant registered nurses. TheStateHuman Resources Division(HR) is available to review work period designations for positions in your agency. It may begin on any day of the week and at any hour of the day established by the employer. $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. The employee is entitled to an additional one-half times this regular rate for each hour over 40, plus the salary. To be properly classified as "exempt" under the FLSA, an employee must satisfy both the salary and duties tests. 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. The phased in changes will be effective January 1 of each subsequent year. #views-exposed-form-manual-cloud-search-manual-cloud-search-results .form-actions{display:block;flex:1;} #tfa-entry-form .form-actions {justify-content:flex-start;} #node-agency-pages-layout-builder-form .form-actions {display:block;} #tfa-entry-form input {height:55px;} Illinois. A monthly salary should be multiplied by 12 and the product divided by 52. Please contact your assigned AAG for analysis. In addition to the straight-time pay, the employee is also entitled to $4.50 (half the regular rate) for each hour over 40 - an additional $22.50 for the 5 overtime hours - for a total of $427.50. Partial overtime pay exemptions apply to employees engaged in certain operations on agricultural commodities and to employees of certain bulk petroleum distributors. 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. This salary threshold would not apply to individuals whose primary duty is teaching, and there are other specialized rules that apply in the higher education settings. These changes moved the threshold to $684 per week ($35,568 annualized) and allowed for up to 10% of non-discretionary bonuses to satisfy threshold requirements. The employer who elects to use the tip credit provision must inform the employee in advance and must be able to show that the employee receives at least the applicable minimum wage (see above) when direct wages and the tip credit allowance are combined. Workweek - A workweek is a period of 168 hours during 7 consecutive 24-hour periods. The final rule is effective Jan. 1, 2020 and isestimated toextend overtime protections to more than one million workers who are not currently eligible under federal law. Employers who willfully or repeatedly violate minimum wage or overtime pay requirements are subject to civil money penalties for each violation. }); if($('.container-footer').length > 1){ On September 24, 2019, the DOL announced the final rule increasing the salary threshold for exemption to the FLSA from $455 per week to $684 per week (lower than originally proposed.) The relevant inquiry is what the standard salary level is to qualify for exemption under state law. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. How can employers avoid salary compression when raising the minimum salary for exempt employees under the revised overtime regulations? The salary threshold for the FLSA's overtime exemption would have increased to $47,476 from $23,660 on Dec. 1. . If an agency has already determined that a position meets the exemption criteria and there have been no substantive changes to the position duties since it was last reviewed, is there any reason why the agency would need to review it again before changing the employee to overtime exempt once they reach the salary threshold? A bathroom, even if private, is not a permissible location under the Act. For hourly computer professionals, L&Is new salary threshold is $47.92 per hour. Piece rate - The regular rate of pay for an employee paid on a piecework basis is obtained by dividing the total weekly earnings by the total number of hours worked in that week. Workers who do not earn at least $35,568 a year ($684 a week) would have to be paid overtime, even if they're classified as a manager or professional. Agencies are responsible for determining whether a workers job duties and salary meet the requirement to be overtime exempt under WMWA. 2022: $15.00: $1,200: $5,200: $62,400: Overtime must be paid at a rate of at least one and one-half times the employees regular rate of pay for each hour worked in a workweek in excess of the maximum allowable in a given type of employment. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Please log in as a SHRM member. 541.710(a). In general, hours worked includes all time an employee must be on duty, or on the employers premises or at any other prescribed place of work, from the beginning of the first principal activity of the work day to the end of the last principal work activity of the workday. Where violations are found, they will recommend changes in employment practicesin employment practices to bring an employer into compliance. The salary threshold required to exempt EAP employees from overtime protections under FLSA are different. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. So far there have been no changes for 2022. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} Direct any questions you may have to classandcomp@ofm.wa.gov and reach out to your assigned Assistant Attorney General. Certain commissioned employees of retail or service establishments; auto, truck, trailer, farm implement, boat, or aircraft sales-workers; or parts-clerks and mechanics servicing autos, trucks, or farm implements, who are employed by non-manufacturing establishments primarily engaged in selling these items to ultimate purchasers; Employees of railroads and air carriers, taxi drivers, certain employees of motor carriers, seamen on American vessels, and local delivery employees paid on approved trip rate plans; Announcers, news editors, and chief engineers of certain non-metropolitan broadcasting stations; Domestic service workers living in the employers residence; Employees of motion picture theaters; and. Please purchase a SHRM membership before saving bookmarks. The states minimum wage is scheduled to increase on January 1, 2022. Visit Here. This is a very fact specific question that should be asked of your assigned Labor and Personnel or Education Division AAG. Please enable scripts and reload this page. Regulations governing child labor in non-farm jobs differ somewhat from those pertaining to agricultural employment. Restrictions apply in the manufacture of knitted outerwear, gloves and mittens, buttons and buckles, handkerchiefs, embroideries, and jewelry (where safety and health hazards are not involved). Fair Labor Standards Act (FLSA) guidance Learn about the FLSA, a federal law which establishes minimum wage, overtime pay eligibility, and recordkeeping affecting full-time and part-time workers. Fair Labor Standards Act Effective Date of Policy: 03/01/2021 Next Scheduled Review: 04/01/2022 . A coach will not qualify for the exemption if their primary duties are recruiting students to play sports or visiting high schools to conduct student interviews. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. Does L&I hold the same opinion under the WA Minimum Wage Act? .agency-blurb-container .agency_blurb.background--light { padding: 0; } 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. To ensure your organization is aware of the latest minimum wage requirements, please check out our breakdown by state and locality. The proposal is expected to be issued in the near future. As a result, the minimum salary required for the executive, administrative, and professional exemptions from overtime under state law increases to $1,014.30 per week on January 1, 2022. 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). The FLSA provides that DOL may seek a U.S. District Court order to prevent the shipment of the affected goods. Members may download one copy of our sample forms and templates for your personal use within your organization. For more information, see WAC 357-28-240. Anyone who is involved in HR, supervises the HR function or otherwise has an interest in HR is The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. Your session has expired. 12. 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. 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. 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. How do we perform a salary test for staff who work in cyclic-year positions? 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? A space temporarily created or converted into a space for expressing milk or made available when needed by the nursing mother is sufficient provided that the space is shielded from view, and free from any intrusion from co-workers and the public. 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