New DOL Overtime Threshold in 2022 United States Department of Labor (DOL) is expected to issue a new proposal for a new salary threshold for several overtime exemptions under the Fair Labor Standards Act (FLSA). In addition, the FLSAs general requirement that the employee must be completely relieved from duty or else the time must be compensated as work time applies. .table thead th {background-color:#f1f1f1;color:#222;} } .usa-footer .container {max-width:1440px!important;} else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { 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. How do we perform a salary test for staff who work in cyclic-year positions? Wages required by the FLSA are due on the regular payday for the pay period covered. At that time, DOL proposed upping the minimum salary threshold from $23,660 a year to $50,440 a year, an increase of 113%, with additional increases in subsequent . If your agency would like to change the work period designation from overtime eligible to overtime exempt or lawenforcementyou must request approval fromStateHR. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { Las Cruces: $11.50 per hour for nontipped employees and $4.60 per hour for tipped employees. var currentUrl = window.location.href.toLowerCase(); p.usa-alert__text {margin-bottom:0!important;} It does not matter if the employee is working full-time or part-time. 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. 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. Paid leave does not count as time worked for non-represented employees. 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. Example: An employee paid $8.00 an hour works 44 hours in a workweek. For information regarding academic . Please log in as a SHRM member before saving bookmarks. In 2022, employees in Washington must earn a salary of at least 1.75 times the minimum wage for a 40-hour workweek to qualify for exemption. Currently, the FLSA's salary threshold is $35,568, but some states have a higher cutoff for exempt workers. In lieu of litigation, the Department may seek back wages and liquidated damages, through settlements with employers. A space temporarily created or converted into a space for expressing milk or made available when needed by the nursing mother is sufficient provided that the space is shielded from view, and free from any intrusion from co-workers and the public. Employees considered exempt from WMWAs overtime requirements must meet both the threshold salary test (using the new increased salary basis threshold above in question #1) and the duties test of a particular position. 17. $("span.current-site").html("SHRM MENA "); 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. For these two exemptions, the state generally sets the minimum salary requirement at 75 times the state minimum wage, which differs based on the region of the state. Currently, the salary threshold for the professional exemptions is $684 per week, which equates to $35,578 per year. However, at any age, minors may deliver newspapers; perform in radio, television, movie, or theatrical productions; work for parents in their solely-owned non-farm business (except in mining, manufacturing or on hazardous jobs); or gather evergreens and make evergreen wreaths. Special information is required for homeworkers, for employees working under uncommon pay arrangements, for employees to whom lodging or other facilities are furnished, and for employees receiving remedial education. In many cases, the state criteria are harder to meet than the federal criteria. A new rate increase will be announced and be effective on July 1, 2022. 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). /*--> p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; Should higher education institutions apply the WMWA criteria in the same manner as state agencies? Hours Worked - Covered employees must be paid for all hours worked in a workweek. Direct any questions you may have to classandcomp@ofm.wa.gov and reach out to your assigned Assistant Attorney General. 15.Do furloughs impact how one calculates salary for the purposes of applying the new salary basis test? If the employee works 60 hours, the regular rate is $8.00 ($480 divided by 60 hours). But employers in the state will still need to stay informed about movements at the federal level. The employee is entitled to an additional one-half times this regular rate for each hour over 40, plus the full piecework earnings. 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. 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. The right to file a comment with the Ombudsman is in addition to any other rights a small entity may have, including the right to contest the assessment of a civil money penalty. The list includes some special districts in states but does not include all of said districts. 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. Members can get help with HR questions via phone, chat or email. 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. 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. Washington Minimum Wage Act (WMWA) Q&A Learn about overtime and paid sick leave requirements in the WMWA . 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. WAC 296-128-532. . Non-exempt @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} Where there are differences between the state and federal overtime rules, the employer must follow the rule that is most favorable to the worker. 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. California's exempt salary threshold will rise along withthe state's minimum wage Hospitals and residential care establishments may adopt, by agreement with their employees, a 14-day work period instead of the usual 7-day workweek if the employees are paid at least time and one-half their regular rates for hours worked over 8 in a day or 80 in a 14-day work period, whichever is the greater number of overtime hours. In addition, there are other specialized rules which apply in higher education settings, as discussed in number 4 below. L&I Administrative Policy ES.A.9.5; WAC 296-128-530(2)(a). However, some States do have laws under which such claims (sometimes including fringe benefits) may be filed. One Washington - transformation of enterprise systems, Memos sent to agencies and the Legislature. 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. 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. WMWA exempts certain kinds of covered employees from its requirements, including bona fide Executive, Administrative, and Professional (EAP) workers. A minimum wage of not less than $4.25 an hour is permitted for employees under 20 years of age during their first 90 consecutive calendar days of employment with an employer. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. It depends. Exemptions from Both Minimum Wage and Overtime Pay. 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. This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. SHRM members receive exclusive access to templates, tools, webcasts, how-to guides and more aimed at helping HR professionals get their organizations into compliance with the new overtime regulations. Illinois. The salary threshold required to exempt EAP employees from overtime protections under FLSA are different. Such employment is permitted only under certificates issued by WHD. Please purchase a SHRM membership before saving bookmarks. 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;}'; 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. A covered enterprise is the related activities performed through unified operation or common control by any person or persons for a common business purpose and . Your session has expired. See WAC 296-128-533(1)(c). Workers who customarily receive more than $100 per month in tips must still receive the minimum hourly wage in the City, so if they arent earning enough in tips the employer must pay them enough to make up the difference. 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