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New January 1, 2022 State Minimum Wages. Connecticut's minimum wage will increase to $14 on July 1, and Florida's will rise to $11 on Sept. 30. Deductions from pay are permissible when an exempt employee: is absent from work for one or more full days for personal reasons other than sickness or disability; for absences of one or more full days due to sickness or disability if the deduction is made in accordance with a bona fide plan, policy or practice of providing compensation for salary lost due to illness; to offset amounts employees receive as jury or witness fees, or for military pay; for penalties imposed in good faith for infractions of safety rules of major significance; or for unpaid disciplinary suspensions of one or more full days imposed in good faith for workplace conduct rule infractions. Taxable Income. Please log in as a SHRM member before saving bookmarks. Fact Sheet #17G: Salary Basis Requirement and the Part 541 - DOL Eagan, MN 55121 However, for new, renewed and extended contracts, the minimum hourly rate will be $15 starting Jan. 30. Elimination of Paper Documentation in Streamlined Entry Process NLRB Will Not Stop Short in Imposing Remedies for Failure to Bargain, A Definitive Guide to Master Law Firm Business Development. Sheikh noted that increases at the state and local level are starting to plateau at about $15 an hour. Pennsylvania Medical Supply Company Agrees to $5 Million Settlement. Fact Sheet #17A: Exemption for Executive, Administrative - DOL To qualify for the exemption, employees must meet certain tests regarding their job duties and be paid on a salary basis of not less than $684 per week ($35,568 annually). "Where appropriate, employers may need to raise salaries for exempt employees or reclassify them as nonexempt," said Saima Sheikh, an attorney with BakerHostetler in New York City. 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. Beginning January 1, 2022, these employees must earn at least: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. The Focus HR team will be reaching out to all of our clients to go over these changes and how they may be impacted, but if you have any questions or concerns, please contact us. ~$65,478.40 (2 x Minimum Wage, Employers with 51 or more Employees). To be considered "exempt," these employees must generally satisfy three tests: Note: There are also exemptions for outside sales and computer professional employees. It follows a similar method to California. The minimum wage is based on where an employee performs work. The site is secure. p.usa-alert__text {margin-bottom:0!important;} ADP does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog. Computer software employees may be paid on an hourly or a salary basis in order to qualify for exemption from Californias overtime requirements. (2) $101,250 for those who meet the duties-requirements for HCE employees. Former Wage and Hour Division Administrator Tammy McCutchen updated attendees of the SHRM Employment Law & Compliance Conference 2022about the salary threshold for white-collar exemptions in the proposed overtime rule due out soon. "On the federal level, increasing the minimum wage is certainly a goal of the Biden administration," observed Charles McDonald, an attorney with Ogletree Deakins in Greenville, S.C. "There are several bills pending that include an increase to the federal minimum wage, but we don't expect to see any movement until closer to the 2022 elections.". Michigan's Governor Plans to Raise the Exempt Salary Threshold Federal Register :: Federal Acquisition Regulation: Exemption of The changes are summarized below: To qualify for the administrative, professional, and executive exemptions in California, employees must meet certain salary and duties tests and must be paid at least twice the state minimum hourly wage based on a 40-hour week. For employees in the Hospitality Industry, written notice must also be provided prior to any change in their hourly rates of pay. For example, 16 part-time employees count as 16 employees. New York Rings in 2022 with Employment Law Updates $14 per hourfor employers with26 or more employees; $15 per hour for employers with 26 or more employees; $9.87 (unless the states unemployment rate for 2021 exceeded 8.5%, in which case the current $9.65 rate will remain in effect for 2022), $9.30 (for employers with annual gross receipts of $342k per year; otherwise, the federal minimum wage applies), $15.00, or $2 above state minimum wage, whichever is greater, $15.50 or $2 above the state minimum wage, whichever is greater, $14.00 (increasing to$15.00 by Dec. 31, 2021). The National Law Review - National Law Forum LLC 3 Grant Square #141 Hinsdale, IL 60521 Telephone (708) 357-3317 ortollfree(877)357-3317. L&I now uses a multiplier of the state minimum wage to determine the minimum salary threshold. 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. The tiered salary thresholds required for exempt status are also rising effective December 31, 2021. The state's minimum wage for 2023 is $15.74 an hour. For information about minimum wage exclusions, see our. 2023: $54,132 2024: $62,920.L&I is using a multiplier of the state minimum wage to determine the minimum salary threshold.2. By the time the rule is fully implemented in 2028, a salaried exempt employee will have to be paid at least 2.5 times the state minimum wage. The Department of Labor issued a final rule on Sep. 24, 2019 increasing the salary-level. Moving Towards MOCRA Implementation: FDA Announces Industry DAO Deemed General Partnership in Negligence Suit over Crypto Hack IRS Updates Its List of Compliance Campaigns. In Washington, employees must satisfy certain salary and duties tests to be classified as exempt from overtime under state law. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. New York States salary threshold is usually higher than the federal threshold, and that will remain the case if the federal courts continue to block the planned federal increases. Currently, the FLSA's salary threshold is $35,568, but some states have a higher cutoff for exempt workers. Suite 400 New 2022 State Wage Laws and Updates - The National Law Review New Antidumping and Countervailing Duty Petition on Non-Refillable Steel Cylinders I-9 Verification and Compliance: Navigating New Nuances Post-COVID, Foreign Sponsors Breaking Into The Us Renewables Market: Challenges And Solutions, Labor and Employment Update for Employers May 2023, Global Mobility Opportunities And Challenges: How To Navigate A Global Workforce. As a result, the minimum salary required for the executive, administrative, and professional exemptions from overtime under state law increases to $1,014.30 per week on January 1, 2022. The salary rates may vary depending on the city/county where an employee resides/works in California. Any legal analysis, legislative updates or other content and links should not be construed as legal or professional advice or a substitute for such advice. Other statesincluding Colorado, New York and Washingtonhave exempt salary rules that are separate from the minimum wage and will rise for 2022. While nearly every employer must pay the New York State minimum wage, there are some very specific exceptions, which only apply to certain employees or employees of public entities. If an employee is paid at different rates for different hours, the employer must pay overtime at 1.5 times the regular rate. If the employees rate of pay increases, the increase must be reflected in the wage statement provided with their paycheck. } In accordance with Public Health Law section 3614-f, effective October 1, 2022, the minimum wage for home health aides increased by $2 from the basic minimum hourly rates set forth in the miscellaneous wage order. "If you fail to ask whether someone could be exempt, you could be hit with penalties," she said. The Washington state overtime threshold for exempt jobs as of January 1, 2022 is set by state rule at 1.75 times the state minimum wage and will be $1,014.30 per week. On December 31, 2021, the minimum wage is increasing in every region except New York City. 2023 Exempt Status Salary Threshold by City and State 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;}'; At the moment, there is no increase for NYC, Long Island, and Westchester which have their own minimum salary threshold. Worker Adjustment and Retraining Notification (WARN), Non-Profitmaking Institutions, Public Agencies, and Children's Camps (PDF). May 5, 2022 Under the Fair Labor Standards Act ("FLSA") employees must generally be paid at least federal minimum wage for all hours worked and overtime at a rate of one and a half times their "regular rate of pay" for all hours worked in excess of forty (40) hours in a workweek. Please log in as a SHRM member before saving bookmarks. Ideology or Antitrust? Many state and local wage rates have been increasing in phases each year to ultimately reach $15 an hour, and some have already reached or surpassed that rate. 2023 Exempt Status Salary Threshold by City and State. Yes, wherever there is joint employment, all employees at all entities must be totaled together to determine which minimum wage rate applies. Lastly, exempt salary thresholds are also increasing in some states. } Yes, every employer must provide notice by posting the applicable minimum wage poster. USTR Releases 2023 Special 301 Report on Intellectual Property Washington Signs Into Law an Act for Consumer Health Data Privacy: Dont Look Twice, Its Alright The FCC Pulls Back the Curtain on Trending in Telehealth: April 18 24, 2023. Violations need not be repeat or willful for penalties to be available, McCutchen noted, but penalties are more likely if the violations are willful. However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies. $("span.current-site").html("SHRM MENA "); Workers must be paid the minimum wage rate for their work location regardless of where the main office of their employer is located. var temp_style = document.createElement('style'); This year, employers should pay particular attention to minimum wage changes, higher salary requirements for exempt workers and COVID-19-related paid leave. Under the state's exemption for highly technical computer employees, the employee may be paid by salary (at least $865.38 per week in 2022) or by the hour (under a state proposal, the minimum hourly rate would be $28.92 in 2022). 1305 Corporate Center Drive These exemptions are often called the white-collar or EAP exemptions. Merrill noted that the changes for federal contractors may "reflect the general enthusiasm" of the Biden administration to raise the minimum wage to $15 for all workers. Many states have their own salary and duties tests for determining whether an employee is exempt from overtime under state rules.