Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. While the FLSA does set basic minimum wage and overtime pay standards and regulates the employment of minors, there are a number of employment practices which the FLSA does not regulate. The salary threshold required to exempt EAP employees from overtime protections under FLSA are different. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} .agency-blurb-container .agency_blurb.background--light { padding: 0; } Pennsylvania Raises Exempt Salary Threshold The Pennsylvania Department of Labor and Industry published its final rule to substantially increase the salary cutoff for exempt executive,. Special salary levels would apply to certain U.S. territories and an updated base rate would apply to employees in the motion-picture industry. Hourly rate (regular pay rate for an employee paid by the hour) - If more than 40 hours are worked, at least one and one-half times the regular rate for each hour over 40 is due. To illustrate, suppose an employees hours of work vary each week and the agreement with the employer is that the employee will be paid $480 a week for whatever number of hours of work are required. Salary - The regular rate for an employee paid a salary for a regular or specified number of hours a week is obtained by dividing the salary by the number of hours for which the salary is intended to compensate. HR professionalsmust knowhow to determine overtime eligibilityfor each employee. This final rule went into effect January 1, 2020, and it remains in effect today. 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. L&I Administrative Policy ES.A.9.5; WAC 296-128-530(2)(a); See also for guidance attached DOL Fact Sheet. See also federal law for guidance, 29 C.F.R. .manual-search ul.usa-list li {max-width:100%;} 11. "It's a long shot that the DOL would enforce the rule retroactively," Jones said, "but if it did, the burden would be on employers to show the hours employees worked.". The minimum salary threshold for individuals to be exempt from overtime will increase from $455 per week ($23,660 annually) to $684 per week ($35,568 annually). The current split level salary ranges are 40-51 on the general service salary schedules for represented employees under WFSE GG and HE WPEA & WFSE, Coalition. Please contact your assigned AAG for analysis. The answer to this question is fact-specific and requires analysis of the positions primary duties under the administrative exemption of WMWA. Note: In Colorado, an exempt employees salary generally must also be sufficient to satisfy the minimum wage for all hours worked in a workweek. 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; Employers with fewer than 26 employees must pay a salary of at least $1,120 in 2022 to qualify for the exemption. The states minimum wage is scheduled to increase on January 1, 2022. What changes were made to the WMWA rules? else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { In addition, academically oriented youths enrolled in an approved Work-Study Program (WSP) may be employed during school hours. Cook County: $13.00 per hour; $7.20 per hour for tipped employees, Portland: $13.00 per hour; $6.50 per hour for tipped employees, Montgomery County: $15.00 + CPI increase for large employers (51 or more employees) as of July 1, 2022; $14.50 for midsized employers (11 to 50 employees) as of July 1, 2022; $14.00 for small employers (10 or fewer employees) as of July 1, 2022, Minneapolis: As of July 1, 2022, $15.00 per hour (up from $14.25) for employers with 100 or more employees and $13.50 per hour (up from $12.50) for employers with fewer than 100 employees, Saint Paul: As of July 1, 2022, $15.00 per hour (up from $12.50) for employers with more than 10,001 employees, $13.50 per hour (up from $12.50) for employers with between 101 and 10,000 employees, $12.00 per hour (up from $11.00) for employers with between 6 and 100 employees, and $10.75 per hour (up from $10.00) for employers with 5 or fewer employees. personal information, including employees name, home address, occupation, sex, and birth date if under 19 years of age; total hours worked each workday and each workweek; total daily or weekly straight-time earnings; regular hourly pay rate for any week when overtime is worked; The Department is authorized to supervise the payment of unpaid minimum wages and/ or unpaid overtime compensation owed to any employee(s). Employees who lack a high school diploma, or who have not attained the educational level of the 8th grade, can be required to spend up to 10 hours in a workweek engaged in remedial reading or training in other basic skills without receiving time and one-half overtime pay for these hours. Please enable scripts and reload this page. If your agency would like to change the work period designation from overtime eligible to overtime exempt or lawenforcementyou must request approval fromStateHR. 111-148), amended Section 7 of the FLSA, to provide a break time requirement for nursing mothers. The salary threshold test should be applied to the pre-determined salary set by the salary schedule without regard to potential furloughs that may arise. A monthly salary should be multiplied by 12 and the product divided by 52. Employees who make less than $35,568 are now eligible for overtime pay under a final rule issued by the U.S. Department of Labor (DOL). TheStateHuman Resources Division(HR) is available to review work period designations for positions in your agency. Also included is any additional time the employee is allowed (i.e., suffered or permitted) to work. Under FLSA, the standard salary threshold is $684 per week or $35,568 per year. Employers who have willfully violated the law may be subject to criminal penalties, including fines and imprisonment. In a regulatory agenda published on December 10, the Department of Labor announced its intention to review and update Fair Labor Standards Act regulations regarding the overtime threshold.. Find out more about the announcement and what it could mean for your organization in 2022. All employees who work for the covered employer, regardless of work site, are counted when determining whether this exemption may apply. .usa-footer .container {max-width:1440px!important;} .table thead th {background-color:#f1f1f1;color:#222;} For classified employees and those employees exempt from civil service the salary threshold discussed in question #1 should be applied in order to exempt the position. When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. Covered, nonexempt workers are entitled to a minimum wage of $7.25 per hour effective July 24, 2009. The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments. Employment at less than the minimum wage is authorized to prevent curtailment of opportunities for employment. The Department of Labor considers athletic coaches to qualify for the teacher exemption if they instruct student athletes in how to perform their sport. Not necessarily. Paid leave does not count as time worked for non-represented employees. 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. WAC 296-128-532. 8. Employees who have filed complaints or provided information cannot be discriminated against or discharged on account of such activity. .manual-search ul.usa-list li {max-width:100%;} 4. 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). The final rule updates the earnings thresholds necessary to exempt executive, administrative and professional employees from the Fair Labor Standards Act's (FLSA) minimum wage and overtime pay . If the employee works 60 hours, the regular rate is $8.00 ($480 divided by 60 hours). Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { By 2028 the annual salary threshold will be $78,624.00. In addition to the salary, half the regular rate, or $4.80, is due for each of the 10 overtime hours, for a total of $528 for the week. 541.710(a). Due to an increase in the states 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. What is the salary requirement for part-time salaried workers? Postal Service, Postal Rate Commission, and the Tennessee Valley Authority. The reasonable cost or fair value of board, lodging, or other facilities customarily furnished by the employer for the employees benefit may be considered part of wages. The current minimum salary threshold sits at $35,568 annually, which was put into place at the start of 2020 following a lengthy process that began during the Obama administration. 6. 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. Employers are prohi-bited from taking any action to displace employees in order to hire employees at the youth minimum wage. Also, employees must retain all of their tips, except to the extent that they participate in a valid tip pooling or sharing arrangement. In addition, there are other specialized rules which apply in higher education settings, as discussed in number 4 below. Please confirm that you want to proceed with deleting bookmark. If adverse action is taken against an employee for engaging in protected activity, the affected employee or the Secretary of Labor may file suit for relief, including reinstatement to his/her job, payment of lost wages, and damages. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} 3. The equal pay provisions of the FLSA prohibit sex-based wage differentials between men and women employed in the same establishment who perform jobs that require equal skill, effort, and responsibility and which are performed under similar working conditions. Generally, the regular rate includes all payments made by the employer to or on behalf of the employee (except for certain statutory exclusions). /*--> -1) { As of today, that salary minimum is $684 per week ($35,568 per year); the agency is expected to seek an increase to $900-1000 per week, somewhere in the $50,000 per annum range. For academic employees, consult your assigned AAG about whether the new salary basis threshold applies. Send request toState HRClassification and Compensation . What are the split-level pay ranges under the WMWAs new salary threshold? Sample language Employers may want to consult legal counsel about how this rule may impact them. For represented positions, refer to the appropriate collective bargaining agreement to ensure required notifications occur when making changes to an employees overtime status. Fair Labor Standards Act Effective Date of Policy: 03/01/2021 Next Scheduled Review: 04/01/2022 . whose annual gross volume of sales made or business done is not less than $500,000 (exclusive of excise taxes at the retail level that are separately stated); or, is engaged in the operation of a hospital, an institution primarily engaged in the care of the sick, the aged, or the mentally ill who reside on the premises; a school for mentally or physically disabled or gifted children; a preschool, an elementary or secondary school, or an institution of higher education (whether operated for profit or not for profit); or, their cash wages from one employer in calendar year 2010 are at least $1,700 (this calendar year threshold is adjusted by the Social Security Administration each year); or. 1){ Federal law establishes a minimum salary of $684 per week for the professional exemption. Who is affected by the Fair Labor Standards Act? If you are represented, employers and employees should reviewcollective bargaining agreements for specific requirements concerning work period designations and overtime eligibility. 25 states are raising their minimum wage in 2022. 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. If a salary is paid on other than a weekly basis, the weekly pay must be determined in order to compute the regular rate and overtime pay. The weekly standard salary level will continue to increase each year over the next eight years. The application of most exemptions are determined on a workweek basis as a bookmark an within. Hourly computer professionals, l & I Administrative Policy ES.A.9.5 ; WAC 296-128-530 ( 2 ) ( ). 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