USTR Releases 2023 Special 301 Report on Intellectual Property Washington Signs Into Law an Act for Consumer Health Data Privacy: Dont Look Twice, Its Alright The FCC Pulls Back the Curtain on Trending in Telehealth: April 18 24, 2023. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. The salary threshold will then automatically be reset every three years starting October 3, 2023 based on the 10th percentile of wages in the exempt occupations in Pennsylvania, utilizing a Pennsylvania-specific data set. 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). Yes. The increase for larger employers has yet to be announced because it is tied to the CPI, but the rate for smaller employers will jump to $14.50. Note that there are special rules for tipped employees, who may be paid up to $3.00 per hour less than the minimum wage if the employee receives at least the minimum wage for all hours worked. To qualify for exemption, employees generally must be paid at not less than $684* per week on a salary basis. To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $684* per week. So far there have been no changes for 2022. The Trump administration's 2020 overtime rule raised the salary threshold to $35,568 per year. The National Law Review - National Law Forum LLC 3 Grant Square #141 Hinsdale, IL 60521 Telephone (708) 357-3317 ortollfree(877)357-3317. 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. Salary Threshold as of December 31, 2021. For example, the Massachusetts Emergency COVID-19 Paid Sick Leave Law was extended through April 2022. The final rule is available at: https://www.federalregister.gov/documents/2019/09/27/2019-20353/defining-and-delimiting-the-exemptions-for-executive-administrative-professional-outside-sales-and. The U.S. Department of Labor outlines the categories and the tests that must be met under the federal FLSA. "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. Employers that operate across the U.S. have plenty of wage and hour issues to monitor. $("span.current-site").html("SHRM China "); The National Law Review is a free to use, no-log in database of legal and business articles. temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !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. However, no exemption from the state's minimum wage is available. Although the federal rate remains $7.25 for now, the Department of Labor recently issued new minimum wage rates for employees who perform work in connection with federal contracts. Please confirm that you want to proceed with deleting bookmark. The minimum wage will be phased in to reach $15.00 for the following groups on the dates set forth below. $("span.current-site").html("SHRM MENA "); Note that if the employer had previously employed 11 or more persons at any point during the current or prior calendar year, the employer would have to pay the Large Employer rate throughout the current calendar year. Employers seeking to classify employees as exempt from overtime should ensure employees meet both federal and state exemption criteria. 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. Yes. . Employers may want to consult legal counsel about how this rule may impact them. 2023 ADP, Inc. All Rights Reserved. If the employees rate of pay increases, the increase must be reflected in the wage statement provided with their paycheck. $("span.current-site").html("SHRM China "); 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). State DOL Website 2022 Salary Threshold 2023 Change *Effective 1/1/2023 Last Updated Alabama Visit Here $35,568 (Current Federal) N/A 7/24/2009 Alaska Visit Here $43,014.40 $45,136 Slowing the Spread of Litigation: An Update on First Circuit COVID-19 Has Your Business Attorney Met Your Estate Planning Attorney? Merrill noted that the changes for federal contractors may "reflect the general enthusiasm" of the Biden administration to raise the minimum wage to $15 for all workers. If an employer (1) has a clearly communicated policy prohibiting improper deductions and including a complaint mechanism, (2) reimburses employees for any improper deductions, and (3) makes a good faith commitment to comply in the future, the employer will not lose the exemption for any employees unless the employer willfully violates the policy by continuing the improper deductions after receiving employee complaints. Chicago: $15.00 per hour (employers with 21 or more employees); $14.00 per hour for smaller employees; tipped employees must be paid at least $9.00 per hour for larger employers and $8.40 for smaller employers. This year, employers should pay particular attention to minimum wage changes, higher salary requirements for exempt workers and COVID-19-related paid leave. (2) $101,250 for those who meet the duties-requirements for HCE employees. In an April 2021 blog post, the DOL announced that it would seek liquidated damages to settle investigations prior to litigation. federal court in Texas held to be invalid, managing the enterprise or a department or subdivision of the enterprise, include the exercise of discretion and independent judgment, reinstated a Trump-era independent contractor 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. Enter to open, tab to navigate, enter to select, Practical Law Practice Note Overview w-013-7477, https://content.next.westlaw.com/practical-law/document/I19eee08b287511e89bf099c0ee06c731/Minimum-Salary-Thresholds-for-Executive-Administrative-and-Professional-Exemptions-Under-State-Law-Chart-Overview?viewType=FullText&transitionType=Default&contextData=(sc.Default), Minimum Salary Thresholds for Executive, Administrative, and Professional Exemptions Under State Law Chart: Overview. You have successfully saved this page as a bookmark. 2023: $54,132 2024: $62,920.L&I is using a multiplier of the state minimum wage to determine the minimum salary threshold.2. }); if($('.container-footer').length > 1){ 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. The employer may either charge the lesser meal allowance for every meal or charge the allowance applicable to where the employee ate the provided meal. .cd-main-content p, blockquote {margin-bottom:1em;} If you live in a county with a special exempt threshold and do not see it listed, visit your district Department of Labor website to obtain accurate information. Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees. However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees. California Expands CalSavers/Retirement Plan Requirement to All Employers 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. Exempt employees do not need to be paid for any workweek in which they perform no work. In Maine, an exempt employees regular annual compensation must exceed 3,000 times the states minimum hourly wage or federal rate (whichever is higher). The Focus HR team will be reaching out to all of our clients to go over these changes and how they may be impacted, but if you have any questions or concerns, please contact us. A reminder that the professional exemption is not covered by the NYS salary threshold and would therefore defer to the federal FLSA salary threshold, currently $684 per week ($35,568 when annualized). New York City's alary requirements for exempt employees is: $58,500 annually ($1,125 per week) That's also the threshold in Nassau, Suffolk, Westchester Counties, counties, N.Y. Employers with fewer than 26 employees must pay a salary of at least $1,120 in 2022 to qualify for the exemption. In many cases, the state criteria are harder to meet than the federal criteria. Also, an employer is not required to pay the full salary in the initial or terminal week of employment, or for weeks in which an exempt employee takes unpaid leave under the Family and Medical Leave Act. Employers may pay the higher uniform maintenance allowance for the week or they may choose to prorate the allowance for the number of hours worked in each region. ~$65,478.40 (2 x Minimum Wage, Employers with 51 or more Employees). If an actual practice is found, the exemption is lost during the time period of the deductions for employees in the same job classification working for the same managers responsible for the improper deductions. 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. At the end of last year, more than 100 unions and advocacy groups called on the DOL to raise the salary threshold for exempt workers to $73,551 per year and to $82,745 annually by 2026. Elimination of Paper Documentation in Streamlined Entry Process NLRB Will Not Stop Short in Imposing Remedies for Failure to Bargain, A Definitive Guide to Master Law Firm Business Development. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. . In order for an exemption to apply, an employees specific job duties and salary must meet all the requirements of the Departments regulations. 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. On December 31, 2022, the state minimum weekly salary for administrative and executive employees will range from $1064.25 per week for employees in New York State, to $1,125.00 per week for employees who work in Nassau, Suffolk and Westchester counties and in New York City for any size employer and Fast Food Establishments. Any business that (1) employs one or more employees in New York City and (2) has. . An agency within the U.S. Department of Labor, 200 Constitution Ave NW Federal government websites often end in .gov or .mil. 2023 Epstein Becker & Green, P.C. "Given the current labor market, employers should also pay close attention to how much their competitors are offering to pay employees.". "Where appropriate, employers may need to raise salaries for exempt employees or reclassify them as nonexempt," said Saima Sheikh, an attorney with BakerHostetler in New York City. Lastly, if computer professionals in Washington are paid on an hourly basis and meet the duties requirements, they must be paid at least $55.09 per hour to be considered exempt (3.5 times the states minimum wage). Any such catch-up payment will count only toward the prior years salary amount and not toward the salary amount in the year in which it is paid. There is no lower wage rate established for trainees or youth. 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. Here are the highlights and what employers should be aware of to start the New Year. McCutchen predicted that if the DOL increasesthe salary threshold to $50,000 or above, "there will be litigation all over again by employer interest groups.". McCutchen noted that industries particularly vulnerable to DOL enforcement efforts include: The department also focuses its enforcement efforts on the amusement industry; apparel manufacturing; auto repair establishments; child care services; guard services; hair, nail and skin care services; hotels and motels; janitorial services; landscaping services; and temporary help. ADP does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. This includes the new salary threshold of $990 per week ($51,480 when annualized) in effect as of December 31, 2021. These salary requirements do not apply to outside sales employees, teachers, and employees practicing law or medicine. The 2022 salary threshold will change from $821.40 per week ($42,712 annually) for small employers and $958.30 ($49,831 annually) for large employers to $1,014.30 per week ($52,743.60 annually) for both small and large employers. To request permission for specific items, click on the reuse permissions button on the page where you find the item. No. And $16.20 per hour for the remainder of New York State, effective December 31, 2022. The beginning of the year is a good time for employers to audit their pay practices for compliance with federal, state and local wage and hour laws. Updated New York Salary Threshold. 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 will increase to $735.59 per week on January 1, 2022. 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. The federal Fair Labor Standards Act (FLSA) requires that employers pay most employees at least the federal minimum wage for each hour worked as well as overtime pay for all hours worked in excess of 40 in a workweek. For information about minimum wage exclusions, see our. 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.
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