15.Do furloughs impact how one calculates salary for the purposes of applying the new salary basis test? Further information on prohibited occupations is available from https://www.dol.gov/agencies/whd/youthrules. Agencies are responsible for determining whether a workers job duties and salary meet the requirement to be overtime exempt under WMWA. For more information, see WAC 357-28-240. The salary threshold required to exempt EAP employees from overtime protections under FLSA are different. The Patient Protection and Affordable Care Act (PPACA), signed into law on March 23, 2010 (P.L. When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. In such a case, the Department will not seek the same back wages and liquidated damages on that employees behalf. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. Employers are also required to provide a place, other than a bathroom, that is shielded from view and free from intrusion from coworkers and the public, which may be used by an employee to express breast milk. The UCs will retain the higher FLSA salary threshold of $913 per week for staff positions, as implemented in December 2016. } A 3-year statute of limitations applies in cases involving willful violations. In Washington, employees must satisfy certain salary and duties tests to be classified as exempt from overtime under state law. If an employees tips combined with the employers direct wages of at least $2.13 an hour do not equal the minimum hourly wage, the employer must make up the difference. regardless of what happens to the now-blocked federal overtime rule. You are highly encouraged to take a close look not only at the salary, but at whether the position duties meet the job duties test under L&Is rules. .manual-search ul.usa-list li {max-width:100%;} } Who is affected by the Fair Labor Standards Act? Unlike the federal law, WMWA does not include a highly compensated employees (HCE) standard. Will employees have to meet both the threshold salary test AND the duties test to be considered overtime exempt under the WMWA? For those who have access to the Internet, further information may also be obtained on WHDs Internet Home Page which can be located at the following address:www.dol.gov/agencies/whd. If you have questions on whether a certain type of work is restricted, or who is eligible for a homework certificate, or how to obtain a certificate, you may contact the local WHD office. How do we perform a salary test for staff who work in cyclic-year positions? Changes to the standard salary level to exempt EAP employees from WMWA overtime requirements are effective January 1, 2021. And employers had the option of . Following are examples of exemptions which are illustrative, but not all-inclusive. Generally, for purposes of minimum wage and overtime payment, each workweek stands alone; there can be no averaging of 2 or more workweeks. Domestic service workers such as day workers, housekeepers, chauffeurs, cooks, or full-time babysitters are covered if: Tipped employees are individuals engaged in occupations in which they customarily and regularly receive more than $30 a month in tips. Detailed information is available from local WHD offices. under the H-1C provisions, provides for the enforcement of employment conditions attested to by employers in disadvantaged areas employing H-1C temporary alien nonimmigrant registered nurses. Effective January 1, 2021 the Washington State Department of Labor & Industries (L&I) increased the weekly standard salary level required to exempt executive, administrative or professional (EAP) employees from Washington States overtime pay requirements. Employees could switch from overtime eligible to overtime exempt once their salary exceeds the new salary threshold, provided employees duties also meet the WMWA exemption criteria. WAC 296-128-533(1)(a). Most of the information is of the kind generally maintained by employers in ordinary business practice and in compliance with other laws and regulations. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. The relevant inquiry is what the standard salary level is to qualify for exemption under state law. The employee is entitled to an additional one-half times this regular rate for each hour over 40, plus the salary. is time given to an employee in lieu of overtime pay for hours worked in excess of the established 40-hour workweek. Under the WMWA, the standard salary threshold is higher and more favorable to the worker. Exemptions from Both Minimum Wage and Overtime Pay. 7. Direct any questions you may have to classandcomp@ofm.wa.gov and reach out to your assigned Assistant Attorney General. Postal Service, Postal Rate Commission, and the Tennessee Valley Authority. The exemptions do not apply to manual laborers or other "blue-collar" workers who perform work involving repetitive operations with their hands, physical skill and energy. Some employees are exempt from the overtime pay provisions or both the minimum wage and overtime pay provisions. 14. Minors 16 years and older may perform any job, whether hazardous or not, for unlimited hours; Minors 14 and 15 years old may perform any nonhazardous farm job outside of school hours; Minors 12 and 13 years old may work outside of school hours in nonhazardous jobs, either with a parents written consent or on the same farm as the parent(s); Minors under 12 years old may perform jobs on farms owned or operated by parent(s), or with a parents written consent, outside of school hours in nonhazardous jobs on farms not covered by minimum wage requirements. The Obama DOL wanted a raise to $913 per week, but a court enjoined that increase and so the salary was raised from $455 to $684 a week. A coach will not qualify for the exemption if their primary duties are recruiting students to play sports or visiting high schools to conduct student interviews. What if an employee takes LWOP and that brings them below the WMWA salary threshold? What changes were made to the WMWA rules? Employee coverage, compliance with wage payment requirements, and the application of most exemptions are determined on a workweek basis. 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. What is the salary requirement for part-time salaried workers? Because exemptions are generally narrowly defined under the FLSA, an employer should carefully check the exact terms and conditions for each. The Department of Labor issued a final rule on Sep. 24, 2019increasingthe salary-level threshold for white-collar exemptions to $684a week from $455 a week. Starting in 2021, the state salary threshold will exceed the federal threshold. This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Employers are required to provide reasonable break time for an employee to express breast milk for her nursing child for one year after the childs birth each time such employee has need to express the milk. 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;}'; Join/Renew Now and let SHRM help you work smarter. The FLSA overtime rule determines whether employees are eligibleor exemptfor overtime pay. It may begin on any day of the week and at any hour of the day established by the employer. Under federal law, the total annual compensation level for highly compensated employees is $107,432 per year. 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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. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. The phased in changes will be effective January 1 of each subsequent year. To ensure your organization is aware of the latest minimum wage requirements, please check out our breakdown by state and locality. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. Your session has expired. By 2028 the annual salary threshold will be $78,624.00. Also, employees must retain all of their tips, except to the extent that they participate in a valid tip pooling or sharing arrangement. $("span.current-site").html("SHRM MENA "); 16. A bathroom, even if private, is not a permissible location under the Act. To be properly classified as "exempt" under the FLSA, an employee must satisfy both the salary and duties tests. The frequency of breaks needed to express milk as well as the duration of each break will likely vary. Members may download one copy of our sample forms and templates for your personal use within your organization. For academic employees, consult your assigned AAG about whether the new salary basis threshold applies. The states minimum wage is scheduled to increase on January 1, 2022. Please enable scripts and reload this page. 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. Employers are prohi-bited from taking any action to displace employees in order to hire employees at the youth minimum wage. These examples do not define the conditions for each exemption. Effective Jan. 1, 2020, the federal minimum salary threshold increased to $684 a week. Employees must be paid a salary of at least $684 per week/$35,568 annually, and the employee's duties must fall within one of the so-called "white collar exemptions." Need help with a specific HR issue like coronavirus or FLSA? Nondiscretionary bonuses and incentive payments (including commissions) paid on an annual or more frequent basis may be used to satisfy up to 10 percent of the standard salary level. 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. What happens to employees in positions assigned to split level pay ranges when their salary exceeds the new WMWA salary threshold? The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. How can employers avoid salary compression when raising the minimum salary for exempt employees under the revised overtime regulations? 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). However, where employers already provide compensated breaks, an employee who uses that break time to express milk must be compensated in the same way that other employees are compensated for break time. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. Overtime Non-exempt employees must be paid overtime for hours worked in excess of 40 in a single workweek (a workweek can be any seven consecutive 24-hour periods). The fate of the federal overtime rule remains uncertain, but New York employers need to be aware of state-level changes that spell out salary threshold increases for the administrative and. As WHD authorized representatives, they conduct investigations and gather data on wages, hours, and other employment conditions in order to determine compliance with the law regardless of workers immigration status. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. An employee whose primary duty is in an overtime eligible position will carry that eligibility over to the nonexempt assignment, while an employee whose primary duty is in an overtime exempt position can perform work that would be overtime eligible without losing the exemption. var temp_style = document.createElement('style'); With respect to an employee subject to the minimum wage provisions or both the minimum wage and overtime pay provisions, the following records must be kept: Records required for exempt employees differ from those for nonexempt workers. 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 employee is entitled to an additional one-half times this regular rate for each hour over 40, plus the full piecework earnings. The above matters are for agreement between the employer and the employees or their authorized representatives. In order for an exemption to apply, an employee's specific job duties and salary must meet all the requirements of the Department of Labor's regulations. SHRM Employment Law & Compliance Conference, Dont Forget to Review Duties Tests for Overtime Exemptions, Understanding Overtime Exemptions Under the FLSA. Virtual & Washington, DC | February 26-28, 2023. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. 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. As such, absent the limited exceptions for higher education, if a part-time employees weekly pay doesnt reach $958.30 per week, they are eligible for overtime. If, under the employment agreement, a salary sufficient to meet the minimum wage requirement in every workweek is paid as straight time for whatever number of hours are worked in a workweek, the regular rate is obtained by dividing the salary by the number of hours worked each week. On December 31, 2021, the minimum wage is increasing in every region except New York City. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} In addition to the FLSA, WHD enforces and administers a number of other labor laws. 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. 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