2022 Minimum Wage and Overtime Salary Threshold Increases }); if($('.container-footer').length > 1){ Exempt employees do not need to be paid for any workweek in which they perform no work. WHD will continue to enforce the 2004 part 541 regulations through December 31, 2019, including the $455 per week standard salary level and $100,000 annual compensation level for Highly Compensated Employees. For employees in the Hospitality Industry, written notice must also be provided prior to any change in their hourly rates of pay. With the state salary thresholds for exempt employees now a multiplier of the state minimum wage, one of the thresholds multipliers will rise on Jan. 1, 2023. For example, New York's rates changed on Dec. 31, while California's new statewide rates took effect on Jan. 1. $58,500 ($1,125/week) for employers in Nassau, Suffolk, and Westchester counties, $51,480 ($990/week) for employers in the rest of the state. Yes. Yes, until the minimum wage reaches $15.00, different minimum wage rates will be in effect in the following areas of the state: (1) New York City, (2) Westchester County and Long Island, (3) the remainder of New York State. The content on this blog is "as is" and carries no warranties. Civil monetary penalties are available against employers, managers or supervisors who take tips earned by their employees. Taxable Income. These salary requirements do not apply to outside sales employees, teachers, and employees practicing law or medicine. New York Rings in 2022 with Employment Law Updates "We expect to see some increases in the minimum salary threshold in some states, but these increases are likely to move at a much slower rate than the hourly minimum wages for nonexempt employees," he said. You have successfully saved this page as a bookmark. Exempt Employees: Minimum Salary Requirements for 2022. Please purchase a SHRM membership before saving bookmarks. ~$65,478.40 (2 x Minimum Wage, Employers with 51 or more Employees). The site is secure. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. Congress is considering the Raise the Wage Act, which would increase the federal pay floor to $15 an hour by 2025. 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;}'; Remainder of New York State For other places in New York State, effective Dec. 31, 2022, it's: $55,341 annually ($1,064.25 per week) Washington The FLSA (Fair Labor Standards Act) employment law requires all employers to give eligible (or "non-exempt") workers at least the minimum wage for hours worked. Oftentimes, there are no real consequences if a project gets pushed off into the new year. Employers that operate across the U.S. have plenty of wage and hour issues to monitor. She noted thatshe led the effort to revamp the duties tests in 2004. Beginning January 1, 2022, these employees must earn at least: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. .manual-search-block #edit-actions--2 {order:2;} This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations. Suite 400 Before the Fifth Circuit reviewed Judge Mazzant's decision, the Trump administration rescinded the rule and raised the salary threshold to the current $684/week standard. She explained to the conference attendees thatthe second part of this definition is a "full employment regulation.". . 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). New January 1, 2022 State Minimum Wages. Group 1: New York City Large Employers (employees who work in New York City for Fast Food Establishments and employers of 11 or more employees) New York City Large Employers will reach $15 on December 31, 2018;Group 2: New York City all others All other employees who work in New York City will reach $15 on December 31, 2019;Group 3: All other Fast Food On July 1, 2021, for all other Fast Food Workers throughout the state;Group 4: Downstate - On December 31, 2021, for all employees in Westchester, Nassau and Suffolk counties;Group 5: All others Employees who work in the balance of the State (outside of New York City or Nassau, Suffolk and Westchester counties, other than Fast Food Workers) will reach $13.20 per hour on December 31, 2021. State Law Updates Minimum Wage and Exempt Salary Threshold Increases. New York Citys alary requirements for exempt employees is: Thats also the threshold in Nassau, Suffolk, Westchester Counties, counties, N.Y. For other places in New York State, effective Dec. 31, 2022, its: Washington State also updated its requirements Jan. 1, 2023. The company is headquartered in Eagan, Minn. Under the federal rule, any administrative, executive or professional employee who earns less than this becomes eligible for overtime pay, regardless of actual duties, beginning January 1, 2020. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); Note: In Colorado, an exempt employee's salary generally must also be sufficient to satisfy the minimum wage for all hours worked in a workweek. Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments, https://www.federalregister.gov/documents/2019/09/27/2019-20353/defining-and-delimiting-the-exemptions-for-executive-administrative-professional-outside-sales-and. National Law Review, Volume XII, Number 3, Public Services, Infrastructure, Transportation. . Double Secret Probation! [SHRM members-only HR Q&A:What are the federal, state and local minimum wage rates?]. part 541 with an effective date of January 1, 2020. Isolated or inadvertent improper deductions will not result in loss of the exemption if the employer reimburses the employee for the improper deductions. Seenew exemption threshold. NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us. In an April 2021 blog post, the DOL announced that it would seek liquidated damages to settle investigations prior to litigation. Additionally, if after the 52-week period, the employer has not met its financial obligation, the employer can make a final catch-up payment within one pay period after the end of the 52-week period to bring an employees compensation up to the required level. While the general rule is that overtime must be paid at time and a half of the regular rate, a limited exception allows certain employers to pay time and a half of the minimum wage rate. However, the FLSA provides an exemption from minimum wage and overtime pay for employees who work as executive, administrative, professional and outside sales employees. The state's minimum wage is scheduled to increase on January 1, 2022 and varies based on employer size. .manual-search ul.usa-list li {max-width:100%;} It had previously been set at $23,660. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. var currentUrl = window.location.href.toLowerCase(); Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees. . If an actual practice is found, the exemption is lost during the time period of the deductions for employees in the same job classification working for the same managers responsible for the improper deductions. federal court in Texas held to be invalid, managing the enterprise or a department or subdivision of the enterprise, include the exercise of discretion and independent judgment, reinstated a Trump-era independent contractor rule, New OSHA Guidance Clarifies Return-to-Work Expectations, Trump Suspends New H-1B Visas Through 2020, Faking COVID-19 Illness Can Have Serious Consequences, White House Takes Action Against Migrant Child Labor. 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. 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. Such an employer is required to pay the New York City Large Employer minimum wage rate. [CDATA[/* >