The current salary threshold is $3,466.67 a … Under the rule, employers may apply a limited portion of certain nondiscretionary commissions and bonuses to meet the minimum salary level for the exemptions. For employers with 25 or fewer employees, the minimum annual salary would be $49,920. increases the current-enforced compensation level for “highly compensated employees” (HCEs) from $100,000 to $107, 432 per year. This method works best with standard workweeks. The minimum salary requirement for 2020 for white-collar workers is $54,080 for employers with 25 or fewer employees and $49,920 for employers with 26 or more employees. As an example, if an employee makes a current salary of $585 per week and regularly works 45 hours per week, then he has a regular rate of $13 per hour. Under Colorado’s new regulations, the state minimum salary threshold for exempt employees will become $35,568, or $684.00 per week, effective July 1, 2020… Effective Jan. 1, 2020, the thresholds are: $54,080/year for employers with 26 or more employees. Washington labor costs are about to increase for Washington employers with minimum wage employees and, more significantly, for exempt employees currently in the salary range of $35,000 to $40,000 annually. X= $12.315. The new salary level is equivalent to $35,568 per year for a full-time worker. In addition, the new minimum wage changes the 2021 thresholds … $780 per week ($40,560 annually) October 3, 2022. Minimum Wage (2021) In keeping with the gradual increase in the State's minimum wage levels, the new tiered rates across the State, effective December 31, 2020, are listed below. The minimum wage applies to most employees in Georgia, with limited exceptions including tipped employees, some student workers, and other exempt occupations.. New York State employers, though, must be mindful that, also as of January 1, 2020, they must pay exempt employees substantially higher minimum salaries, or those employees may be eligible for overtime pay under New … These new minimums will take effect on January 1, 2020. On December 31, 2019, the state minimum weekly salary for administrative and executive employees will range from $885.00 per week for employees outside of New York City and Nassau, Suffolk and Westchester counties, to $1,125.00 per week for employees who work in New York City for large employers and Fast Food Establishments. On Tuesday, the U.S. Department of Labor issued its final rule concerning overtime exemptions. Total of $492.60 plus $18.48 = $585.00. Bill also regularly counsels employers on issues relating to the Family and Medical Leave Act (FMLA), disability and accommodations. Minimum Wage (2021) In keeping with the gradual increase in the State’s minimum wage levels, the new tiered rates across the State, effective December 31, 2020, are listed below. The law introduced minimum wages and overtime pay, and created criteria for determining whether an employee is “exempt” from overtime pay requirements or is “non-exempt” and therefore entitled to overtime pay. One solution is to re-structure the formerly exempt employee’s pay so that the new pay with overtime approximates what he was making previously without the overtime pay. Employees that are classified as exempt are automatically excluded from minimum wage and overtime requirements that the FSLA provides, as well as any state … Salary Threshold for Exempt Employees (2020) The tiered salary thresholds across the state are also rising in-line with the minimum wage. The duties tests remain intact. For 2021, the Washington minimum wage will be $13.69 per hour (an increase from the current $13.50 per hour). That translates to thousands of extra payroll dollars ($11,908 annually) for companies like retail, dry cleaners, restaurants, cleaning companies and lots of other businesses with traditionally lower wages. For example: the minimum wage in 2020 will be $13.50, or $540 per week for a … With the state salary thresholds for exempt employees now a multiplier of the state minimum wage, the thresholds will also rise on Jan. 1, 2021. Each hour worked over 40 would pay an additional ½ of the “regular rate”. $58,500 annually $1,125 weekly. Read on for everything you need to know about the new ruling! Minimum Threshold 2020. Employers … The current minimum salary was $455 per week, or $23,660 annually. In addition to New York’s minimum wage increase, the minimum salary that must be paid to workers classified as exempt under New York State Labor Law’s administrative and executive exemptions increased for 2020. $875 per week ($45,500 annually) Who Qualifies for the “White Collar” Exemptions? The current minimum is $23,660.00, or $455.00 per week. The 2016 rule also increased the minimum salary for HCEs (to $134,004), allowed employers to use nondiscretionary bonuses and incentive pay to satisfy up to 10% of the salary threshold, and provided for automatic annual updates to keep the minimum salary level adjusted to the 40th percentile of full-time salaried workers in the lowest-wage Census region. Minimum Threshold 2019. OAR 839-020-0004(30)(b). The New York State minimum wage rates and minimum overtime-exempt salary levels for employees working outside of New York City will increase on December 31, 2020. DOL Proposes $35,308 Minimum Salary For Exempt Employees, Supreme Court Rules Auto Service Advisers Are Exempt From Overtime, Just When You Thought the DOL’s OT Rule Was Dead, It Lives to Fight Another Day, Texas District Court Strikes Down Obama FLSA Exemption Rules, DOL Brief in Overtime Rules Case Leaves New Uncertainty, DOL Broadly Defines When a Summer Camp or Program is a Child’s Place of Care for FFCRA Leave, DOL Withdraws Industry Lists from its Retail or Service Establishment Exemption Interpretative Rule, DOL Green Lights Bonuses for Employees with Fluctuating Work Schedules, Walmart Takes Lead in Providing Paid Sick Leave in the Face of COVID-19. No changes to the duties test have been made. 2. Salary threshold implementation schedule Salary thresholds for overtime exempt workers are a multiplier of state minimum wage for a 40-hour workweek 2021 Salary thresholds Small businesses: $821.40/week ($42,712.80/year) Large businesses: $958.30/week ($49,831.60/year) When the rule takes effect July 1, 2020 Jan. 1, 2021 Jan. 1, 2022 Jan. 1, 2023 So, the regular rate may fluctuate from week to week. The new state minimum wage will be $13.69 an hour, and will take effect Jan. 1, 2021. Minimum Wage Increase. The new state minimum wage will be $13.69 an hour, and will take effect Jan. 1, 2021. Effective January 1, 2020, however, the minimum salary level to be exempt will increase to $684 per week ($35,568 per year). This is only one of the factors used in determining whether a worker is exempt from overtime under federal or state law. January 1, 2021. Salary Threshold for Exempt Employees (2021) Finally, the tiered salary thresholds required for exempt status are also rising effective December 31, 2020. 10/6/2020. That amount plus the regular salary of $500 would amount to $527.78. The new final rule will take effect on January 1, 2020. So, if the employee worked 45 hours in a week, the overtime calculation would be: $500 divided by 45 hours= $11.11 for the regular rate. Minimum Salary Threshold July 1, 2020 $684.00 per week ($35,568 per year) January 1, 2021 $778.85 per week ($40,500 per year) January 1, 2022 $865.38 per week ($45,000 per year) January 1, 2023 $961.54 per week ($50,000 per year) January 1, … 1.25 x Washington Minimum Wage ($35,100/year) ($675/week) (The new rate under the FLSA, effective January 1, 2020, is $35,568/year, or $684/week) Same as for larger employers. Salary-basis test. October 3, 2020. This means that the minimum salary for exempt employees in 2020 is either: $4,160.00 per month (or $49,920.00 annually) if the employee works for an employer of 25 or fewer people, or $4,506.67 per month (or $54,080.00 annually) if the employee works for an employer of more than 25 people. As with any business decision, all factors should be considered before making a final determination. The rule increases the salary threshold for employees exempt under the executive, administrative, and professional exemptions (the “white collar exemptions”) from $455 per week (or $23,660 annually) to $684 per week (or $35,568 annually). Increasing the total annual compensation threshold for highly compensated employees (“HCEs”) from $100,000 per year to $107,432 per year; Permitting employers to use nondiscretionary bonuses and incentive payments to satisfy up to 10% of the increase salary threshold; and. Effective January 1, 2020, the federal government is raising the minimum salary requirement for exempt positions from $455 to $684. In 2016, the DOL, under President Obama’s administration, issued a final rule increasing the salary threshold to $913 per week … The new thresholds will go into effect on Jan. 1, 2021. Employer Type / Exemption Type. is a labor and employment boutique law firm representing private and public sector employers in all aspects of labor and employment law, including counseling and compliance, employment litigation, union-related matters, and employee benefits. The new minimum salary threshold falls between the current salary threshold and the rule proposed under the Obama administration. The Washington State Department of Labor & Industries (L&I) has announced the state minimum wage for 2021 and calculated the new state minimum salary thresholds for overtime exempt employees. $35,356 annually $684 weekly. In the event that the employee works less than the usual 45 hours, his pay would be less than $585; if he works more than 45 hours, his pay will be more than $585. Salary Threshold for Exempt Employees (2021) Finally, the tiered salary thresholds required for exempt status are also rising effective December 31, 2020. Likewise, the rule increases the salary level for the highly compensated employee exemption to $107,432. Her practice focuses on counseling and representing employers on various employment and labor issues. Committing to updating the salary threshold more regularly. In 2016, the DOL, under President Obama’s administration, issued a final rule increasing the salary threshold to $913 per week (or $47,476 annually). Seyfarth Synopsis: As they have each year since 2016, the minimum wage and exempt salary threshold will increase for New York employers effective December 31, 2020. Some states have a higher salary threshold than the federal law (or have no HCE exemption or no credit for bonuses/commissions against the salary level or have more narrow duties requirements). Minimum wage laws can affect businesses of all sizes, whether operating … The final rule takes effect on January 1, 2020 and raises the current minimum salary level for exempt employees from $455 per week, or $23,660 annually, to $684 per week, or $35,568 annually. Salary Test for Exempt Employees . Oregon law also permits the payment on a fee basis without jeopardizing the salary basis of otherwise exempt employees, provided the fees are paid each pay period and are not less than the equivalent of the applicable state minimum wage. The federal increase in the white collar exemptions’ salary threshold has no effect on private sector employees in New York State, which uses tiered salary thresholds depending on where an employee works in the state. Need Help? Franczek P.C. 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