25 states are raising their minimum wage in 2022. The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. 111-148), amended Section 7 of the FLSA, to provide a break time requirement for nursing mothers. To be classified as exempt from New Yorks overtime requirements, executive and administrative employees must meet minimum salary requirements and satisfy certain duties tests. SHRM Employment Law & Compliance Conference, Dont Forget to Review Duties Tests for Overtime Exemptions, Understanding Overtime Exemptions Under the FLSA. The new rate will take effect Jan. 1, 2020. Effective January 1, 2021, the rule increases the minimum salary required for the executive, administrative, and professional exemptions under state law as follows: Employers with 50 or Fewer Employees: $821.40 per week. Changes to the standard salary level to exempt EAP employees from WMWA overtime requirements are effective January 1, 2021. TheStateHuman Resources Division(HR) is available to review work period designations for positions in your agency. Members may download one copy of our sample forms and templates for your personal use within your organization. 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. -1) { Revised September 2016. 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. 8. In general, hours worked includes all time an employee must be on duty, or on the employers premises or at any other prescribed place of work, from the beginning of the first principal activity of the work day to the end of the last principal work activity of the workday. In accordance with the provisions of the SBREFA, the Small Business Administration established a National Small Business and Agriculture Regulatory Ombudsman and 10 Regional Fairness Boards to receive comments from small entities about federal agency enforcement actions. 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. In lieu of litigation, the Department may seek back wages and liquidated damages, through settlements with employers. Since state law is more favorable, employees who are currently exempt under FLSA may now be overtime eligible under state law requiring the employer to provide overtime pay to those employees. It depends. Please contact your assigned AAG for analysis. Meeting the salary threshold doesn't automatically make an employee exempt from overtime pay; the employee's job duties also must primarily involve executive, administrative or professional duties as defined by the regulations. By 2028 the annual salary threshold will be $78,624.00. The site is secure. ]]>*/, New: Interactive Handy Reference Guide to the Fair Labor Standards Act (PDF), (For best printout, see the PDF version.) Paid leave does not count as time worked for non-represented employees. On September 24, 2019, the U.S. Department of Labor announced a final rule to make 1.3 million American workers newly eligible for overtime pay. The Department may file suit on behalf of employees for back wages, an equal amount in liquidated damages, and civil money penalties where appropriate. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); Who is affected by the Fair Labor Standards Act? Send request toState HRClassification and Compensation . For academic employees, consult your assigned AAG about whether the new salary basis threshold applies. 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. The FLSA requires employers to keep records on wages, hours, and other items, as specified in DOL recordkeeping regulations. Employers who have willfully violated the law may be subject to criminal penalties, including fines and imprisonment. You will want to change them to overtime eligible only for the week when the furlough occurs. The FLSA provides that DOL may seek a U.S. District Court order to prevent the shipment of the affected goods. $("span.current-site").html("SHRM MENA "); Employers seeking to classify employees as exempt from overtime should ensure employees meet both federal and state exemption criteria. 6. These penalties may be increased for each violation that results in the death or serious injury of an employee who is a minor, and may be doubled if the violation was determined to be willful or repeated. For employees with multiple appointment types with the same employer, it is sometimes unclear which position is their primary duty for purposes of determining exempt or nonexempt status. Special salary levels would apply to certain U.S. territories and an updated base rate would apply to employees in the motion-picture industry. 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. Nondiscretionary bonuses and incentive . The salary threshold to qualify for exemption is $958.30 per week under WMWA. The records do not have to be kept in any particular form and time clocks need not be used. It may begin on any day of the week and at any hour of the day established by the employer. The FLSA allows the Department of Labor (Department) or an employee to recover back wages and an equal amount in liquidated damages where minimum wage and overtime violations exist. The FLSA contains some exemptions from these basic standards. Visit Here. Most of the information is of the kind generally maintained by employers in ordinary business practice and in compliance with other laws and regulations. For non-represented positions WAC 357-28-245 requires general government employers to get OFM approval when changing a positions overtime eligibility designation from overtime eligible to overtime exempt. 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. 16. 5. Overtime-eligible employees must be compensated with overtime pay or compensatory time for all hours worked over 40 in a single workweek. 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. The Department may seek a U.S. District Court injunction to restrain violations of the law, including the unlawful withholding of proper minimum wage and overtime pay, failure to keep proper records, and retaliation against employees who file complaints and/or cooperate with the Department. An official website of the United States government. Another way to compensate pieceworkers for overtime, if agreed to before the work is performed, is to pay one and one-half times the piece rate for each piece produced during the overtime hours. Pay for the week would be $320 for the first 40 hours, plus $48.00 for the four hours of overtime - a total of $368.00. On December 31, 2021, the minimum wage is increasing in every region except New York City. 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. 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. 541.710(a). var temp_style = document.createElement('style'); However, some States do have laws under which such claims (sometimes including fringe benefits) may be filed. 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. Deductions made from wages for such items as cash or merchandise shortages, employer-required uniforms, and tools of the trade, are not legal to the extent that they reduce the wages of employees below the minimum rate required by the FLSA or reduce the amount of overtime pay due under the FLSA. Agency's Targets In December, the DOL announced it had plans to revisit the salary threshold for "white-collar" exempt employees under the FLSA. The Department may seek an order for payment of civil money penalties from a U.S. Department of Labor Administrative Law Judge where appropriate. 13. Who should you contact regarding agency or higher education institution specific questions? By submitting this form you are agreeing to receive emails from Focus HR Inc. Privacy Policy | Business Health Insurance, 5 HR Priorities for 2023: How Business Owners Can Solve Their Toughest HR Problems in the Post-Pandemic World, The Hidden Costs of Combining Accounting & HR Functions, Dont be the next headline understand FLSA compliance, Nassau, Suffolk, and Westchester Counties: $1,125 per week, Remainder of the State (Except New York City): $990 per week (proposeda final decision is expected soon). An exempt employee must earn a salary of at least 1.75 times the minimum wage, or $958.30 a week ($49,831.60/year) to maintain the exemption. The states minimum wage is scheduled to increase on January 1, 2022 and varies based on employer size. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); Where there are differences between the state and federal overtime rules, the employer must follow the rule that is most favorable to the worker. May 2022 The United States Department of Labor ("DOL") is expected to propose a new salary threshold for various overtime exemptions under the Fair Labor Standards Act ("FLSA"). The Ombudsman annually evaluates enforcement activities and rates each agencys responsiveness to small entities. Virtual & Washington, DC | February 26-28, 2023. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} Direct any questions you may have to classandcomp@ofm.wa.gov and reach out to your assigned Assistant Attorney General. As a result, the minimum salary required for the executive and administrative exemptions will increase on December 31, 2021 as follows: Note: There is also a professional exemption under state law. Postal Service, Postal Rate Commission, and the Tennessee Valley Authority. Starting in 2021, the state salary threshold will exceed the federal threshold. Under the WMWA, the standard salary threshold is higher and more favorable to the worker. } The new salary threshold is $958.30 per week meaning that if the position calls for the employee to work 40 weeks out of the year, then the ability to exempt the position from WMWA would depend on whether or not the employees weekly salary exceeds $958.30 per week. 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. Washington Minimum Wage Act (WMWA) Q&A Learn about overtime and paid sick leave requirements in the WMWA . Also, work may not begin before 7 a.m., nor end after 7 p.m., except from June 1 through Labor Day, when evening hours are extended to 9 p.m. Example: An employee paid $8.00 an hour works 44 hours in a workweek. vacation, holiday, severance, or sick pay; meal or rest periods, holidays off, or vacations; a discharge notice, reason for discharge, or immediate payment of final wages to terminated employees. WAC 296-128-533(1)(a). California also has the following new local minimum wages: Alameda: $15.00 (a new CPI adjustment will be announced and become effective on July 1, 2022), Belmont: $16.20 (a new CPI adjustment will be announced and become effective on January 1, 2022), Berkeley: $16.32 (a new CPI adjustment will be announced and become effective on July 1, 2022), Emeryville: $17.13 (a new CPI adjustment will be announced and become effective on July 1, 2022) (businesses located outside Emeryville that contract with the city and perform their services outside the city must comply with the living wage rate, which is $16.97), Fremont: $15.00 for small employers; $16.00 for large employers (a new CPI adjustment will be announced and become effective on July 1, 2022), Half Moon Bay: $15.56 for large employers, $14.52 for small employers, Los Angeles City: $15.00 (a new CPI adjustment will be announced and become effective on July 1, 2022), Menlo Park: $15.25 (a new CPI adjustment will be announced and become effective on January 1, 2022), Milpitas: $15.65 (a new CPI adjustment will be announced and become effective on July 1, 2022), Novato: $15.77 for very large businesses (100 or more employees), $15.53 for large businesses (26 to 99 employees), and $15.00 for small employers (25 or fewer employees), Pasadena: $15.00 (a new CPI adjustment will be announced and become effective on July 1, 2022), San Francisco: $16.32 (a new CPI adjustment will be announced and become effective on July 1, 2022), Santa Monica: $15.00 (a new CPI adjustment will be announced and become effective on July 1, 2022), Santa Rosa: $15.85 (a new CPI adjustment will be announced and become effective on July 1, 2022), Sonoma: $16.00 for large employers (26 or more employees) and $15.00 for small employers (25 or fewer employees), Denver: $15.87 per hour, up $1.10 from the 2021 rate of $14.77 per hour, $5.15 (Employers subject to the Fair Labor Standards Act must pay the $7.25 Federal minimum wage). 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