There is no lower wage rate established for trainees or youth. As a result, employers must pay a salary of at least $1,240 per week beginning January 1, 2023 to qualify for the exemption. The FAR threshold for alternatives to payment bonds at FAR 28.102 is currently $35,000; it was escalated twice, one in 2006 and again in 2015. No. .agency-blurb-container .agency_blurb.background--light { padding: 0; } $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. The following is a comprehensive list of the exempt status salary threshold by state. Copyright 2023 GovDocs, Inc. GovDocs is a registered trademark of GovDocs, Inc. Oregon Paid Family Medical Leave Update 2023, April Showers Bring May Flowers: Infographic, Los Angeles Fair Work Week Poster Released, GovDocs Goes Green with Eco-Friendly Labor Law Posters, 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, $57,293.60 annually ($1,101.80/week); salaried workers must be paid at least 1.75 times the states minimum wage), $65,478.40 annually ($1,259.20/week); salaried workers must be paid at least two times the states minimum wage, Police, firefighters, paramedics and other first responders. 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 increases to $865.38 per week on January 1, 2022. This rate must be used to calculate other wage and hour requirements such as overtime and spread of hours. Job titles do not determine exempt status. In Maine, an exempt employees regular annual compensation must exceed 3,000 times the states minimum hourly wage or federal rate (whichever is higher). $('.container-footer').first().hide(); For additional information, visit our Wage and Hour Division Website: http://www.dol.gov/agencies/whd and/or call our toll-free information and helpline, available 8 a.m. to 5 p.m. in your time zone, 1-866-4USWAGE (1-866-487-9243). The minimum wage will be phased in to reach $15.00 for the following groups on the dates set forth below. Computer software employees may be paid on an hourly or a salary basis in order to qualify for exemption from California's overtime requirements. $("span.current-site").html("SHRM China "); 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. Members can get help with HR questions via phone, chat or email. The state's minimum wage for 2023 is $15.74 an hour. So far there have been no changes for 2022. She explained to the conference attendees thatthe second part of this definition is a "full employment regulation.". anticipated proposed overtime rule would be issued in May rather than April, as the U.S. Department of Labor (DOL) originally forecast in Employees must be made aware of the pay rate applicable to the work they perform. National Law Review, Volume XII, Number 3, Public Services, Infrastructure, Transportation. 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. . The minimum wage for health care aides effective October 1, 2022, is $17.00 per hour in New York City, Long Island and Westchester. Anticipated Overtime Rule Previewed - SHRM DOL Expected to Raise the Salary Basis Threshold | Locke Lord @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Speaking on March 29 in Washington, D.C., McCutchen predicted that the In many cases, the state criteria are harder to meet than the federal criteria. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. } Need help with a specific HR issue like coronavirus or FLSA? Federal law establishes a minimum salary of $684 per week for the professional exemption. But thats not the case with new state or local wage-hour laws. While the primary goal of the rule is to update the minimum salary-level requirement for white-collar exemptions, changes to the duties tests also will be considered, said McCutchen, who is astrategic advisor for New York City-based ComplianceHR. Here are the highlights and what employers should be aware of to start the New Year. Seenew exemption threshold. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. L&I now uses a multiplier of the state minimum wage to determine the minimum salary threshold. Yes. $1,125.00 per week ($58,500.00 per year) This chart is based on state law and is intended for private sector, for-profit employers. Most employees, regardless of their rate or method of payment, must be paid overtime after 40 hours of work per week. Exempt computer employees may be paid at least $684 * on a salary basis or on an hourly basis at a rate not less than $27.63 an hour. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} . "Think about your pay practices as a [Department of Labor] investigator would.". Eagan, MN 55121 New York City, 11 or more employees. "If you fail to ask whether someone could be exempt, you could be hit with penalties," she said. If the employer pays different wage rates, they must be able to show the employees hours worked for each wage rate. California, meanwhile, also stipulates that exempt employees must earn a monthly salary equivalent to no less than two times the state minimum wage for full-time employment. Additionally, if after the 52-week period, the employer has not met its financial obligation, the employer can make a final catch-up payment within one pay period after the end of the 52-week period to bring an employees compensation up to the required level. .usa-footer .container {max-width:1440px!important;} In addition to soon issuing a new proposed overtime rule, the DOL is going after the misclassification of workers as independent contractors, particularly in the home care industry, McCutchen said. "While the COVID-19 pandemic hasn't caused federal and state minimum wage rates to rise, both the pandemic and rising wage rates are adding pressure on employers to increase wage rates to address staffing shortages and attract and retain strong candidates," Sheikh said. In an April 2021 blog post, the DOL announced that it would seek liquidated damages to settle investigations prior to litigation. 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. Exempt employees do not need to be paid for any workweek in which they perform no work. 1305 Corporate Center Drive Yes, wherever there is joint employment, all employees at all entities must be totaled together to determine which minimum wage rate applies. For retirees working under the provisions of the Daily Wage Threshold, placement on the salary schedule will be in the cell closest,. Please log in as a SHRM member before saving bookmarks. Yes. var temp_style = document.createElement('style'); Departments Release Update on No Surprises Act Independent Dispute FY 2024 H-1B Registration Period Indicates 780,884 Registrations; A Look Back at Key Takeaways from RSA Conference 2023. Beginning January 1, 2022, these employees must earn at least: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. Before classifying and treating any employee as exempt from overtime, employers should confirm that the employee satisfies all applicable tests for overtime exemption under federal and state laws. A new rate increase will be announced and be effective on July 1, 2022. How high might it go? As mentioned above, to qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis. Minimum Wage Frequently Asked Questions | Department of Labor The overtime salary threshold limits will increase for the following states: California To qualify for the overtime exemption, a computer software professionals must earn at least $50.00 per hour or $104,149.81 annually ($8,679.16 monthly). Contact the USDOL at (866) 487-2365 for more information. The duties tests denote which employees are exemptnot eligible for overtime payand they depend on a variety of factors. The FAR threshold for performance and payment bonds at FAR 28.102 had one escalation adjustment in 2010, which raised the threshold by $50,000 from $100,000 and has since remained unchanged. "On the federal level, increasing the minimum wage is certainly a goal of the Biden administration," observed Charles McDonald, an attorney with Ogletree Deakins in Greenville, S.C. "There are several bills pending that include an increase to the federal minimum wage, but we don't expect to see any movement until closer to the 2022 elections.". An official website of the United States government. For these two exemptions, the state generally sets the minimum salary requirement at 75 times the state minimum wage, which differs based on the region of the state. Although California's statewide COVID-19 supplemental paid-sick-leave law expired, Benjamin Ebbink, an attorney with Fisher Phillips in Sacramento, Calif., said employers could see a renewed push in the state Legislature to revive the benefit as the coronavirus pandemic continues. A New York City employer must pay the New York City Large Employer rate the moment it employs 11 persons. At the moment, there is no increase for NYC, Long Island, and Westchester which have their own minimum salary threshold. The NLR does not wish, nor does it intend, to solicit the business of anyone or to refer anyone to an attorney or other professional. McDonald noted that the current number of states that have a higher minimum salary threshold than the federal level is still small. Salary-Basis Test: New York generally follows federal rules for the salary-basis test. Federal government websites often end in .gov or .mil. For example, an artist paid $350 for a picture that took 20 hours to complete meets the minimum salary requirement since the rate would yield $700 if 40 hours were worked. What is the federal overtime salary threshold in 2023? - Homebase
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