11. While employers are not required under the FLSA to provide breaks to nursing mothers who are exempt from the overtime pay requirements of Section 7, they may be obligated to provide such breaks under State laws. 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. Illinois. Paid leave does not count as time worked for non-represented employees. Please log in as a SHRM member before saving bookmarks. How can employers avoid salary compression when raising the minimum salary for exempt employees under the revised overtime regulations? Exempt computer employees may be paid at least $684 * on a salary basis or on an hourly basis at a rate not less than $27.63 an hour. 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. 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. The Patient Protection and Affordable Care Act (PPACA), signed into law on March 23, 2010 (P.L. It does not matter if the employee is working full-time or part-time. As a result, employers with 26 or more employees must pay a salary of at least $1,200 per week beginning January 1, 2022 to qualify for the exemption. Hourly rate (regular pay rate for an employee paid by the hour) - If more than 40 hours are worked, at least one and one-half times the regular rate for each hour over 40 is due. A 3-year statute of limitations applies in cases involving willful violations. 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. Note: in limited circumstances, the salary threshold does not apply to certain professionals (e.g., teachers, doctors, and lawyers) because those professionals are considered exempt under the WMWA based on their duties alone. Employers are required to provide a reasonable amount of break time to express milk as frequently as needed by the nursing mother. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} Overtime-eligible employees must be compensated with overtime pay or compensatory time for all hours worked over 40 in a single workweek. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} HR professionalsmust knowhow to determine overtime eligibilityfor each employee. $11.00. If in the future the employer requires a furlough of less than one week, it will destroy the salary basis for that workweek if the employee performs work. Federal government websites often end in .gov or .mil. L&I also updated its EAP duties tests to more closely align with the federal standards. This is a very fact specific question that should be asked of your assigned Labor and Personnel or Education Division AAG. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. The current split level salary ranges are 40-51 on the general service salary schedules for represented employees under WFSE GG and HE WPEA & WFSE, Coalition. The relevant inquiry is what the standard salary level is to qualify for exemption under state law. SHRM Employment Law & Compliance Conference, Dont Forget to Review Duties Tests for Overtime Exemptions, Understanding Overtime Exemptions Under the FLSA. The FLSA contains some exemptions from these basic standards. 14. 111-148), amended Section 7 of the FLSA, to provide a break time requirement for nursing mothers. Direct any questions you may have to classandcomp@ofm.wa.gov and reach out to your assigned Assistant Attorney General. 1/1/2022. whose annual gross volume of sales made or business done is not less than $500,000 (exclusive of excise taxes at the retail level that are separately stated); or, is engaged in the operation of a hospital, an institution primarily engaged in the care of the sick, the aged, or the mentally ill who reside on the premises; a school for mentally or physically disabled or gifted children; a preschool, an elementary or secondary school, or an institution of higher education (whether operated for profit or not for profit); or, their cash wages from one employer in calendar year 2010 are at least $1,700 (this calendar year threshold is adjusted by the Social Security Administration each year); or. 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"). Employers who violate the child labor provisions of the FLSA may be subject to civil money penalties. Consider the following: 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 top employee benefits companies are focusing on Dive Insight: Plans to raise the FLSA white-collar exemption threshold have been in the works for more than a year. Under FLSA, the standard salary threshold is $684 per week or $35,568 per year. Santa Fe City: $12.31 per hour for nontipped employees. Please enable scripts and reload this page. The FLSA provides that DOL may seek a U.S. District Court order to prevent the shipment of the affected goods. 541.602(a). Civil money penalties may be assessed for child labor violations and for repeat and/or willful violations of FLSA minimum wage or overtime requirements. While details of the 2022 proposed changes are forthcoming, organizations should prepare now to address pending challenges and associated opportunities. 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. $("span.current-site").html("SHRM China "); Only employees who are not exempt from the FLSAs overtime pay requirements are entitled to breaks to express milk. Please contact your assigned AAG for assistance with questions involving the impact of multiple appointment types on an employees overtime status. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { In addition, there are other specialized rules which apply in higher education settings, as discussed in number 4 below. What is the Fair Labor Standards Act? 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. 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. .manual-search ul.usa-list li {max-width:100%;} .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments, Handy Reference Guide to the Fair Labor Standards Act, Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), Executive, administrative, and professional employees (including teachers and academic administrative personnel in elementary and secondary schools), outside sales employees, and employees in certain computer-related occupations (as defined in DOL regulations), Employees of certain seasonal amusement or recreational establishments, Public agency fire departments and police departments may establish a work period ranging from 7 to 28 days in which overtime need only be paid after a specified number of hours in each work period, https://www.dol.gov/agencies/whd/youthrules, https://www.dol.gov/agencies/whd/flsa#cmp, Contract Work Hours and Safety Standards Act, Migrant and Seasonal Agricultural Worker Protection Act. If the persons pay is tied to the amount of time (i.e., the quantity) that they work, they are hourly employees and overtime eligible because they are not being paid on a salary basis pursuant to WMWA rules. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. $(document).ready(function () { Computer software employees may be paid on an hourly or a salary basis in order to qualify for exemption from Californias overtime requirements. Workweek - A workweek is a period of 168 hours during 7 consecutive 24-hour periods. Members can get help with HR questions via phone, chat or email. In addition to the straight-time pay, the employee is also entitled to $4.50 (half the regular rate) for each hour over 40 - an additional $22.50 for the 5 overtime hours - for a total of $427.50. 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. If the employee works 60 hours, the regular rate is $8.00 ($480 divided by 60 hours). The Department of Labor considers athletic coaches to qualify for the teacher exemption if they instruct student athletes in how to perform their sport. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. It is up to the agency to apply the new salary basis test so that employees would switch from overtime eligible to overtime exempt mid-pay range. $50,000 per year ($961.54 per week) If highly technical computer professionals are paid on an hourly basis and meet the duties requirements, they must be paid at least $31.41 per hour It's also worth noting that Colorado's standard threshold will increase in 2024, with an indexed increase slated for 2025. For academic employees, consult your assigned AAG about whether the new salary basis threshold applies. 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. 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. Where violations are found, they will recommend changes in employment practicesin employment practices to bring an employer into compliance. For hourly computer professionals, L&Is new salary threshold is $47.92 per hour. California. 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. . Any enterprise that was covered by the FLSA on March 31, 1990, and that ceased to be covered because of the revised $500,000 test, continues to be subject to the overtime pay, child labor and recordkeeping provisions of the FLSA. Santa Fe County: $12.32 per hour for nontipped employees and $3.69 per hour for tipped employees (a new CPI adjustment will be announced and become effective on March 1, 2022), Airport employees: $18.00 (up from $17.00), Fast food workers regardless of location: $15.00 (up from $14.50), Long Island and Westchester: $15.00 (up from $14.00), Metro Portland area: $14.75 per hour (up from $14.00) on July 1, 2022, Rural areas: $12.50 per hour (up from $12.00) on July 1, 2022. Maine Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. Piece rate - The regular rate of pay for an employee paid on a piecework basis is obtained by dividing the total weekly earnings by the total number of hours worked in that week. Please log in as a SHRM member before saving bookmarks. 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. California's exempt salary threshold will rise along withthe state's minimum wage Unless exempt, employees covered by the Fair Labor Standards Act must receive at least time and one-half their regular pay rate for all hours worked over 40 in a workweek. Does the paid sick leave under WMWA apply to an employee whose primary duty is teaching i.e. The new federal threshold, which took effect Jan. 1, 2020, is $684 a week ($35,568 a year). If adverse action is taken against an employee for engaging in protected activity, the affected employee or the Secretary of Labor may file suit for relief, including reinstatement to his/her job, payment of lost wages, and damages. Virtual & Washington, DC | February 26-28, 2023. Was this article useful? Join/Renew Now and let SHRM help you work smarter. Arkansas. Employers in Washington may pay computer professionals by the hour (if at least $50.72 per hour in 2022) or on a salary basis (if at least $1014.30 per week in 2022) for those employees to qualify for an overtime exemption. The salary threshold test should be applied to the pre-determined salary set by the salary schedule without regard to potential furloughs that may arise. All overtime-eligible employees must fill out aTime and Attendance Record [.xlxs]in order to comply with FLSA standards. Under the states 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). Certain commissioned employees of retail or service establishments; auto, truck, trailer, farm implement, boat, or aircraft sales-workers; or parts-clerks and mechanics servicing autos, trucks, or farm implements, who are employed by non-manufacturing establishments primarily engaged in selling these items to ultimate purchasers; Employees of railroads and air carriers, taxi drivers, certain employees of motor carriers, seamen on American vessels, and local delivery employees paid on approved trip rate plans; Announcers, news editors, and chief engineers of certain non-metropolitan broadcasting stations; Domestic service workers living in the employers residence; Employees of motion picture theaters; and. 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. In many cases, the state criteria are harder to meet than the federal criteria. See WAC 296-128-533(1)(c). WAC 296-128-532. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. The total annual compensation requirement for highly compensated employees will increase from $100,000 to $107,432. The new proposal is likely to be issued in the near future and could be issued as early as this month. 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. } This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Will employees who are currently considered exempt under FLSA remain exempt under WMWA? To ensure your organization is aware of the latest minimum wage requirements, please check out our breakdown by state and locality. 19. Las Cruces: $11.50 per hour for nontipped employees and $4.60 per hour for tipped employees. 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. Some employees are exempt from the overtime pay provisions or both the minimum wage and overtime pay provisions. var currentUrl = window.location.href.toLowerCase(); .agency-blurb-container .agency_blurb.background--light { padding: 0; } But employers in the state will still need to stay informed about movements at the federal level. Pennsylvania Raises Exempt Salary Threshold The Pennsylvania Department of Labor and Industry published its final rule to substantially increase the salary cutoff for exempt executive,. .cd-main-content p, blockquote {margin-bottom:1em;} The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments. Who is affected by the Fair Labor Standards Act? 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. .manual-search ul.usa-list li {max-width:100%;} If your agency would like to change the work period designation from overtime eligible to overtime exempt or lawenforcementyou must request approval fromStateHR. The Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) administers and enforces the FLSA with respect to private employment, State and local government employment, and Federal employees of the Library of Congress, U.S. The phased in salary thresholds can be found at WAC 296-128-545. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); In most circumstances, yes. 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. Will employees have to meet both the threshold salary test AND the duties test to be considered overtime exempt under the WMWA? The list does not include the city/county thresholds for California. 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. } To request permission for specific items, click on the reuse permissions button on the page where you find the item. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. The proposed minimum salary level for the Fair Labor Standards Act's executive, administrative and professional exemptions thus could be $913 per week or $47,476 per year, if not more, he predicted. 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 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. For non-represented, please refer to other salary schedules for the cutoff at $49,831.60. It is not enough to meet one test but not the other unless the claimed exemption is one for a professional whose duties alone make them exempt regardless of the salary paid or if other specific rules apply, such as in higher education (see #4 above and #1 Note). var temp_style = document.createElement('style'); 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. is time given to an employee in lieu of overtime pay for hours worked in excess of the established 40-hour workweek. The salary shall not be subject to deduction because of various in quantity or quality of the work performed, subject to exceptions in WAC 296-128-532(3). When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. If an agency has already determined that a position meets the exemption criteria and there have been no substantive changes to the position duties since it was last reviewed, is there any reason why the agency would need to review it again before changing the employee to overtime exempt once they reach the salary threshold? 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. However, the employees must receive their normal wages for hours spent in such training and the training must not be job specific. In lieu of litigation, the Department may seek back wages and liquidated damages, through settlements with employers. Need help with a specific HR issue like coronavirus or FLSA? 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. Employee coverage, compliance with wage payment requirements, and the application of most exemptions are determined on a workweek basis. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential.
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