Additional changes include: The new rule is set to take effect on January 1, 2020 and increase the number of overtime-eligible employees by 1.3 million. Under Colorado’s new regulations, the state minimum salary threshold for exempt employees will become $35,568, or $684.00 per week, effective July 1, 2020… January 1, 2021. These employees are known as "exempt" employees. Bill is a partner at Franczek P.C. *Note: The Department of Labor revised the regulations located at 29 C.F.R. The New York State minimum wage rates and minimum overtime-exempt salary levels for employees working outside of New York City will increase on December 31, 2020. Here are the highlights: 1. October 3, 2020. There are options for reducing the impact of the new overtime rule. However, if there is any sort of contract, whether written or implied, with the employee regarding his compensation, then the employer’s ability to change the compensation may be limited. Top Ten Tips Disclaimer. The key, of course, is to make the salary arrangement in writing, in advance, with the employee. Minimum Salary Threshold July 1, 2020 $684.00 per week ($35,568 per year) January 1, 2021 $778.85 per week ($40,500 per year) January 1, 2022 $865.38 per week ($45,000 per year) January 1, 2023 $961.54 per week ($50,000 per year) January 1, … Salary-basis test. The regular rate must be calculated weekly, using all earnings for the week divided by all hours worked that week. The federal increase in the white collar exemptions’ salary threshold has no effect on private sector employees in New York State, which uses tiered salary thresholds depending on where an employee works in the state. As with minimum wage, the salary thresholds vary depending on the employer’s location and the number of employees. Here are the highlights: 1. The new state minimum wage will be $13.69 an hour, and will take effect Jan. 1, 2021. Her labor experience includes preparing and representing clients during arbitration and unfair labor practice charge hearings, while her employment practice includes counseling…. The salary test. That amount plus the regular salary of $500 would amount to $527.78. Employees that are classified as exempt are automatically excluded from minimum wage and overtime requirements that the FSLA provides, as well as any state … Then, any hours worked over 40 would require a payment of “half-time”, since the all the straight time would have already been paid. The New York State minimum wage rates and minimum overtime-exempt salary levels for employees working outside of New York City will increase on December 31, 2020. Salary Threshold for Exempt Employees (2021) Finally, the tiered salary thresholds required for exempt status are also rising effective December 31, 2020. She has also defended employers before the Illinois Department of Labor and the Illinois Educational Labor Relations Board. Georgia's state minimum wage rate is $7.25 per hour.This is the same as the current Federal Minimum Wage rate. The federal increase in the white collar exemptions’ salary threshold has no effect on private sector employees in New York State, which uses tiered salary thresholds depending on where an employee works in the state. The minimum wage applies to most employees in Georgia, with limited exceptions including tipped employees, some student workers, and other exempt occupations.. That is up from $13.50 an hour in 2020. As co-chair of the firm’s Labor and Employment Practice Group, Bill is particularly versed in all aspects of state and federal law relating to minimum wages, overtime, exemptions, and wage payment issues. The Washington State Department of Labor & Industries (L&I) has announced the state minimum wage for 2021 and calculated the new state minimum salary thresholds for overtime exempt employees. Effective January 1, 2020, the federal government is raising the minimum salary requirement for exempt positions from $455 to $684. The table below outlines New York’s 2020 minimum wage: The minimum wage is expected to increase annually until it reaches $15.00 per hour by the end of 2021 for all of New York State. The minimum annual salary is $35,568.00, or $684.00 per week. As with any business decision, all factors should be considered before making a final determination. That translates to thousands of extra payroll dollars ($11,908 annually) for companies like retail, dry cleaners, restaurants, cleaning companies and lots of other businesses with traditionally lower wages. FOR WORKERS; FOR EMPLOYERS For employers with 25 or fewer employees, the minimum annual salary would be $49,920. These new minimums will take effect on January 1, 2020. Effective January 1, 2020, the federal government is raising the minimum salary requirement for exempt positions from $455 to $684. Copyright ©2018 R.C. 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. In 2021, exempt employees at smaller employers must be paid $827 per week ($43,004 annually) and $965 per week ($50,180 annually) at larger employers, consistent with the new MWA rules. The new salary level is equivalent to $35,568 per year for a full-time worker. The Final Rule goes into effect on January 1, 2020. As an example, if an employee makes a current salary of $585 per week and regularly works 45 hours per week, then he has a regular rate of $13 per hour. That is up from $13.50 an hour in 2020. On December 31, 2019, the state minimum weekly salary for administrative and executive employees will range from $885.00 per week for employees outside of New York City and Nassau, Suffolk and Westchester counties, to $1,125.00 per week for employees who work in New York City for large employers and Fast Food Establishments. Minimum Salary/Fee Rate (More than 50 Washington Employees) Minimum Salary/Fee Rate (50 or Fewer Washington Employees) July 1, 2020. Minimum Threshold 2019. Currently, the minimum salary level under Maine law is $33,000 per year (3000 x $11), or $634.62 per week. Minimum Wage (2021) In keeping with the gradual increase in the State’s minimum wage levels, the new tiered rates across the State, effective December 31, 2020, are listed below. Exempt Executive, Administrative, Professional and Computer Employees (EAP) Under this rule, employers must pay salaried exempt EAP employees at least $684 per week on a salary basis. This number was based on the 20 th percentile of weekly earnings for full-time salaried workers in the lowest income census region (currently the South). A federal district court in Texas agreed and blocked the rules from taking effect. The United States Department of Labor issued a final regulation to take effect January 1, 2020, raising the minimum overtime salary threshold for exempt employees under federal law to $35,568. The new thresholds will be effective December 31, 2019 and will depend on employer size and location. The new final rule will take effect on January 1, 2020. Just because an employer pays a salary that satisfies the new federal threshold does not mean that the employee is exempt under the minimum wage law of a state where the employee works. Erin is an associate at Franczek P.C. They are as follows: This isn’t the first time in recent years that we’ve had a final rule issued increasing the salary threshold for the white-collar exemptions. Need Help? Effective January 1, 2020, however, the minimum salary level to be exempt will increase to $684 per week ($35,568 per year). FLSA Salary Threshold Increase Effective January 1, 2020 Employers with operations outside of New York should also remember that, effective January 1, 2020, the standard salary level threshold for exempt employees under the FLSA will increase from $455 to $684 per week. Increased Salary Threshold for Overtime Exemption So, exempt employees in Massachusetts will also have to be paid at the new higher salary threshold beginning January 1, 2020. Washington labor costs are about to increase for Washington employers with minimum wage employees and, more significantly, for exempt employees currently in the salary range of $35,000 to $40,000 annually. $585 = 40x +5 (1.5x) Employer Type / Exemption Type. To be considered "exempt," these employees must generally satisfy three tests: Salary-level test. Large businesses (51 or more employees): 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). Job titles do not determine exempt status. DOL Proposes $35,308 Minimum Salary For Exempt Employees, Supreme Court Rules Auto Service Advisers Are Exempt From Overtime, Just When You Thought the DOL’s OT Rule Was Dead, It Lives to Fight Another Day, Texas District Court Strikes Down Obama FLSA Exemption Rules, DOL Brief in Overtime Rules Case Leaves New Uncertainty, DOL Broadly Defines When a Summer Camp or Program is a Child’s Place of Care for FFCRA Leave, DOL Withdraws Industry Lists from its Retail or Service Establishment Exemption Interpretative Rule, DOL Green Lights Bonuses for Employees with Fluctuating Work Schedules, Walmart Takes Lead in Providing Paid Sick Leave in the Face of COVID-19. This means that the minimum salary for exempt employees in 2020 is either: $4,160.00 per month (or $49,920.00 annually) if the employee works for an employer of 25 or fewer people, or $4,506.67 per month (or $54,080.00 annually) if the employee works for an employer of more than 25 people. The salary threshold is an exemption criteria that sets a minimum pay threshold below which employees must receive overtime pay. Minimum Salary Threshold. According to the new exempt employee law that went into effect January 1, 2020, all executive, administrative, professional, computer, and outside sales exemptions require that the employee … Each hour worked over 40 would pay an additional ½ of the “regular rate”. Note, however, that under Maine law, the minimum salary level for exempt employees must exceed 3000 times the applicable state minimum wage—or the rate established by the U.S. DOL, whichever is higher. Salary Threshold for Exempt Employees (2021) Finally, the tiered salary thresholds required for exempt status are also rising effective December 31, 2020. Total of $492.60 plus $18.48 = $585.00. These solutions are allowed according to the code of federal regulations. New York City Employers (11 or more employees) / Executive and Administrative Exemptions. In 2016, the DOL, under President Obama’s administration, issued a final rule increasing the salary threshold to $913 per week (or $47,476 annually). The employee would be entitled to 5 hours of overtime at : ($11.11*.5) times the 5 hours = $27.78. In addition, the new minimum wage changes the 2021 thresholds … Oregon law also permits the payment on a fee basis without jeopardizing the salary basis of otherwise exempt employees, provided the fees are paid each pay period and are not less than the equivalent of the applicable state minimum wage. 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