The state of Washington minimum wage will increase from to$14.49 to $15.74 per hour on January 1, 2023. The cities of Seattle and SeaTac also have higher minimum wage requirements that are increasing in 2023. 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). Exempt Employees: 2023 Minimum Salary Requirements In order to be exempt from overtime, employees must also meet one of the duties tests. 2023 Exempt Status Salary Threshold by City and State . Vice President for Human ResourcesSU People and Culture Strategies, By using our website, you agree to our cookie policy, Skip to Apply, Request Info, Jobs, Contact links, Institute for Catholic Thought and Culture, Center for Ecumenical and Interreligious Engagement, Washington State 2023 Salary Threshold Change. Note: In Colorado, an exempt employees salary generally must also be sufficient to satisfy the minimum wage for all hours worked in a workweek. Free Speech Shines Bright, Illuminates Patent Owners Right to Allege California Supreme Court to Address Rounding of Employee Time. Exempt computer professionals may be paid based on either the exempt salary threshold ($52,743.60 annually for 2022) or by the hour. Given the steep increase in the minimum wage, the states salary requirements for exempt employees are also increasing significantly. 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. On December 31, 2022, the minimum wage increased in areas other than New York City and Nassau, Suffolk, and Westchester Counties. This same threshold applies to part-time employees; it is not pro-rated for employees who are less than full-time. The Washington State Department of Labor & Industries (L&I) determines minimum thresholds using a multiplier of the state minimum wage. Computer software employees may be paid on an hourly or a salary basis in order to qualify for exemption from California's overtime requirements. We cannot become your lawyers or represent you in any way unless (1) we know that doing so would not create a conflict of interest with any of the clients we represent, and (2) satisfactory arrangements have been made with us for representation. In 2019, at the direction of Governor Inslee, the Washington State Department of Labor & Industries (L&I) published a new schedule of minimum salary thresholds through January 1, 2028. The annualized L&I threshold for 2022 is $52,752. Rep. Mark Takano, D-Calif., led the questioning, noting that he sent a letter to encourage the DOL to adopt a salary threshold that by 2023 would be around $85,000 annually. As a result of a new state minimum wage, the salary thresholds used to determine which workers are exempt from overtime under state law also increased effective January 1, 2023: Note: Employers of any size may pay exempt computer professionals by the hour, provided they pay at least 3.5 times the minimum wage ($55.09 per hour in 2023). The service requires full JavaScript support in order to view this website. Large employers (fifty-one or more employees) must pay exempt employees at least two times the minimum wage to meet the minimum salary requirements. Noncompete Agreements: Washington law prohibits noncompete agreements with employees who earn less than the states annual threshold. The salary rates may vary depending on the city/county where an employee resides/works in California. For small businesses (1-50 employees), an exempt employee must now earn a salary of at least 1.75 times the minimum wage, or $1,101.80/week. Washington's overtime employment rules have changed. 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. 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. So You're Green Prove It or Be Prosecuted: ACCC Sweep Finds 57 California Court of Appeal Addresses When Violations are Willful or Whats new in Belgium on the employment front? An explanation of this requirement and a sample notice form can be found on Seattles wage theft ordinance webpage. Mr. Pankratz has extensive experience representing employers both locally and nationally on various employment Brenda Bannon is of counsel in the Seattle office of Ogletree Deakins and joined the firm in March 2019. This process is automatic. Exempt computer professionals: The minimum salary rate for exempt computer professionals who are paid hourly will also increase as of January 1, 2023. BY These workers are typically "white collar" workers who often have more economic security and relative bargaining power than lower-wage workers. Hes full of profound truisms, and this one has always, On January 14, 2023, the Washington Department of Labor & Industries (L&I)s COVID-19 (coronavirus) emergency rules that had been in place for temporary worker housing (TWH) in the, Evaluate classifications for employees paid a daily rate If other salary changes are needed, departments should process those actions in accordance withuniversity policies. Ogletree Deakins Seattle office and will continue to monitor and report on Washington State wage and hour developments and will post updates to the firms Washington and Wage and Hour blogs as additional information becomes available. California Law May Limit Hospitals Ability to Adopt The Joint Ankura CTIX FLASH Update - February 28, 2023, Ankura Cyber Threat Investigations and Expert Services. L&I has created an online overtime resource center to assist employers in understanding these salary requirements, including charts, fact sheets, workshops, and webinars. Ms. Bannons practice has emphasized the defense of municipal and other governmental clients in state and federal court litigation, in addition to providing routine employment law advice and counsel to local agencies Human Resources professionals. Our new tool provides background on the upcoming changes in the overtime rules, and also includes a tool that can help determine if an employee likely qualifies as exempt or not. This is true in certain other states as well, some of which will have a new minimum wage in 2023. Washington Sets New Minimum Wage and Overtime Exempt Threshold for 2023 You can read theadopted rule language in Chapter 296-128 of the Washington Administrative Code. www.grsm.com is using a security service for protection against online attacks. HERE IT IS: The Czars HUGE Breakdown of the FCC NPRM is NOW Telehealth Update: DEA Issues Long-Awaited Proposed Rule on CFPB Provides Guidance on Auto Finance Data Pilot, Two Maui Men Sentenced for Racially Motivated Attack on White Man, US Executive Branch Update March 3, 2023, EPA Holds Third and Final TSCA Engineering Initiative Webinar. In general, these workers must be salaried and paid a minimum specified salary level, and must primarily perform executive, administrative, professional, outside sales or computer professional duties as defined by state regulations. 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. Her practice extends to private sector clients. Details are available on the Department of Labor and Industries (L&I) Washington minimum wage webpage. If you would ike to contact us via email please click here. Mar 02, 2023 Changes to WA Exempt Employee Salary Thresholds & Job Duties Ogletree, Deakins, Nash, Smoak & Stewart, P.C. 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. 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. Washington Overtime Exemption Laws In 2022 | Know Your Rights These increases impact several state wage requirements that youll want to be aware of if you have employees in Washington. Effective January 1, 2023, civil service employees at these impacted salary ranges and step will be adjusted to minimum wage. Critically, the nonexempt classification is not a reflection of the importance of a position. These changes affect executive, administrative, and professional (EAP) workers as well as outside salespeople and computer professionals across all industries in Washington. Its Here The New National Cybersecurity Strategy. The Washington State Labor and Industries (L&I) announced the minimum salary an employee must earn to be exempt from overtime. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal threshold. Employment Standards message: 2023 salary thresholds set for overtime exempt employees. The Future of Stablecoins, Crypto Staking and Custody of Digital White House Climate and Environmental Justice Screening Tool. It will continue to increase annually thereafter based on inflation. Check outtheovertime rulemaking documents. Note: There is also a professional exemption under state law. Small employers with 1-50 employees must pay exempt employees a salary of at least $1,101.80 per week ($57,293.60 per year). HRS will assist colleges/areas in evaluating the impact of these changes. Two local jurisdictions have higher minimum wages and different labor rules than Washington State. Good News for American Businesses: H1-B Denial Rates Plummet Under USCIS Extends Comment Period for Proposed Fee Increases, OFCCP Rescinds Trump-Era Religious Exemption Rule. Employers seeking to classify employees as exempt from overtime should ensure employees meet both federal and state exemption criteria. 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