Tag: exempt-employees

Colorado Exempt Salary Threshold 2025

Colorado Exempt Salary Threshold 2025

$title$

The Colorado exempt salary threshold is set to increase to $61,000 in 2025. This is a significant increase from the current threshold of $59,260. The increase is intended to keep pace with the rising cost of living in Colorado. The new threshold will also help to ensure that employees are paid a fair wage for their work. The Colorado Department of Labor and Employment (CDLE) is responsible for enforcing the exempt salary threshold. Employers who fail to comply with the new threshold may be subject to fines and other penalties.

In addition to the increase in the exempt salary threshold, the CDLE has also made changes to the overtime rules for exempt employees. Under the new rules, exempt employees will be eligible for overtime pay if they work more than 40 hours in a week. This is a change from the previous rule, which allowed employers to require exempt employees to work up to 50 hours per week without paying overtime.

The changes to the exempt salary threshold and overtime rules are expected to have a significant impact on businesses in Colorado. Businesses should review their pay practices to ensure that they are in compliance with the new rules. Employees who are not sure if they are exempt from overtime should contact the CDLE for more information.

Colorado’s Escalating Exempt Salary Threshold: A Comprehensive Overview

Colorado’s Growing Exempt Salary Threshold

Colorado has enacted a law that will gradually increase the salary threshold for employees to be classified as exempt from overtime pay. This move is part of a growing trend across the United States to ensure that salaried employees are fairly compensated for their work. The new law will go into effect in 2025 and will increase the salary threshold by 50% over the current level. This means that by 2025, salaried employees must earn at least $60,000 per year in order to be classified as exempt from overtime pay.

The new law will have a significant impact on employers in Colorado. Although employers with a small number of employees may not be as affected, businesses that employ a large number of salaried individuals will need to carefully review their compensation structures to ensure compliance with the new law. Failure to do so could result in significant back pay and penalties for violating overtime laws.

To help employers prepare for the changes, the Colorado Department of Labor and Employment has provided the following table outlining the new salary thresholds:

Year Salary Threshold
2025 $60,000
2026 $63,000
2027 $66,000
2028 $68,600

Factors Influencing the Colorado Exempt Salary Threshold

1. Federal Fair Labor Standards Act (FLSA)

The FLSA establishes minimum wage, overtime pay, and other employment standards. It also defines which employees are exempt from overtime pay, including those who meet the “salary basis” test. To be considered exempt under the FLSA, employees must earn a salary that is at least $684 per week ($35,568 per year). Colorado’s exempt salary threshold must be at least as high as the federal level.

2. Colorado Overtime and Minimum Wage Order No. 38 (OWMO 38)

OWMO 38 sets the overtime and minimum wage rates for Colorado employees. It also includes provisions for exempt employees. In 2023, the minimum hourly wage in Colorado is $13.65. The exempt salary threshold under OWMO 38 is currently set at $1,160 per week ($60,320 per year). However, this threshold is scheduled to increase in 2025, as shown in the table below:

Year Exempt Salary Threshold
2025 $1,383 per week ($71,636 per year)

3. Cost of Living

The cost of living in Colorado has a significant impact on the exempt salary threshold. The higher the cost of living, the higher the salary that is required to maintain a reasonable standard of living. The Colorado Department of Labor and Employment (CDLE) considers the cost of living when setting the exempt salary threshold.

Implications of the Increased Threshold for Employers and Employees

Increased Labor Costs

Employers may face higher labor costs as more employees qualify for overtime pay under the increased threshold. This could strain budgets and reduce profitability, especially for businesses with a large workforce.

Need for Clear Exemptions

Employers must carefully define and document which employees qualify as exempt under the revised threshold. Failure to do so could lead to legal disputes and costly penalties if employees are misclassified.

Reduced Work Flexibility

The higher threshold may limit employers’ ability to offer flexible work arrangements to exempt employees. Employers may be less willing to allow overtime for exempt employees who are close to the threshold, as it could push them into non-exempt status. This could reduce employees’ options for work-life balance.

Compliance Strategies for Colorado Businesses

1. Determine Employee Eligibility

Verify if employees meet the duties test and salary threshold to qualify for exempt status.

2. Establish Clear Job Descriptions

Document job duties and responsibilities to demonstrate the employee’s exempt nature.

3. Set Competitive Salary Levels

Ensure salaries meet or exceed the state-mandated threshold to maintain compliance.

4. Utilize a Salary-Based Exemption

Consider incorporating a salary-based exemption into employment agreements or company policies, specifying the required salary level for exempt status. This provides a clear and easily verifiable way to determine employee eligibility.

To ensure compliance, employers should implement the following best practices:

  • Document the salary level and job duties in writing.
  • Regularly review job descriptions to verify that they still meet the criteria for exempt status.
  • Conduct internal audits to monitor compliance and identify any potential issues.

By adhering to these best practices, businesses can minimize the risk of misclassification and ensure compliance with the Colorado exempt salary threshold.

The Economic Impact of the Revised Threshold

The revised exempt salary threshold in Colorado will have a number of economic impacts, including:

Increased Wages for Low-Income Workers

The new threshold will ensure that more low-income workers are paid overtime, which will increase their wages. This will help to boost the economy and reduce income inequality.

Reduced Costs for Businesses

The new threshold will also reduce costs for businesses by eliminating the need to track overtime for workers who are now exempt. This will save businesses time and money.

Increased Productivity

The new threshold will also lead to increased productivity by ensuring that workers are compensated fairly for their time. This will motivate workers to work harder and produce more.

Reduced Turnover

The new threshold will also help to reduce turnover by ensuring that workers are treated fairly. This will save businesses the cost of recruiting and training new employees.

Impact on Specific Industries

The impact of the revised threshold will vary depending on the industry. Some industries, such as retail and hospitality, will be more affected than others. The following table shows the estimated impact on different industries:

Industry Impact
Retail Moderate
Hospitality High
Manufacturing Low
Finance Low

Legal Considerations for Employers

I. Understanding the Threshold

The Colorado exempt salary threshold is the minimum salary that an employee must earn to qualify for overtime pay exemption. In 2025, this threshold will increase to $875 per week or $45,500 annually.

II. Exemptions from Overtime

Certain employees are exempt from overtime pay requirements. These include:

* Executives
* Administrators
* Professionals
* Outside sales employees

III. The Duties Test

To qualify as exempt, an employee’s duties must meet the following criteria:

* Primary Duty Test: The employee’s primary duty must be exempt work.
* 20% Rule: No more than 20% of the employee’s time may be spent on non-exempt work.

IV. Misclassification Risks

Misclassifying employees as exempt can lead to significant legal penalties and back pay liability for employers. It is crucial to carefully assess employee duties and consult with legal counsel if necessary.

V. Recordkeeping Requirements

Employers are required to keep records that document employee hours worked and overtime pay calculations. These records must be maintained for at least three years.

VI. Posting Requirements

Employers must prominently display a notice in the workplace that outlines the following information:

Item Description
Current exempt salary threshold $45,500
Overtime pay rate 1.5 times the employee’s regular rate
Procedure for reporting overtime worked As outlined by the employer

Enforcement and Penalties for Threshold Violations

Compliance Audits

The Colorado Department of Labor and Employment (CDLE) may conduct random audits to ensure compliance with the exempt salary threshold law.

Employee Complaints

Employees who believe they are misclassified as exempt can file a complaint with the CDLE.

Penalties

Violations of the exempt salary threshold law may result in the following penalties:

* Back Wages: The employee must be paid back wages for the hours worked at a rate that meets or exceeds the threshold.
* Overtime Pay: Employees who were classified as exempt may be entitled to unpaid overtime compensation.
* Fines: The CDLE may impose fines of up to $500 per employee for each violation.
* Injunction: The CDLE may seek an injunction to prevent the employer from further violating the law.

Penalties for Repeated or Willful Violations

* Increased Fines: Fines can increase to up to $1,000 per employee for each violation.
* Criminal Charges: Willful or repeated violations may result in criminal charges.

Employer Defenses

Employers can defend against threshold violations by presenting evidence that:

* The employee met the duties test for the exempt classification.
* The employee was properly compensated and had the opportunity to earn overtime pay.
* The employer made a good faith effort to comply with the law.

Future Projections and Potential Amendments

The exempt salary threshold in Colorado is set to continue rising in the coming years. The following table outlines the projected thresholds for 2023-2025:

Year Projected Threshold
2023 $58,316
2024 $61,746
2025 $65,400

8. Potential Amendments

There are several potential amendments to the exempt salary threshold in Colorado that could impact the future of the law. One amendment currently under consideration would tie the threshold to inflation, ensuring that it keeps pace with the cost of living. Another amendment would exempt certain professions or industries from the threshold, such as teachers or law enforcement officers. It is likely that the Colorado legislature will continue to consider amendments to the exempt salary threshold in the coming years.

Best Practices for Salary Administration

Establish Clear Job Descriptions and Performance Expectations

Define the roles, duties, and responsibilities for each position, ensuring that the requirements align with the anticipated compensation range.

Conduct Thorough Market Research

Analyze industry benchmarks, comparable data, and local market trends to ensure that salaries are competitive and aligned with industry standards.

Regularly Review and Update Salaries

Monitor market conditions and employee performance regularly to ensure that salaries remain competitive and reflect changes in job responsibilities.

Consider the Total Compensation Package

In addition to base salary, consider other forms of compensation such as bonuses, stock options, and benefits to create a comprehensive and competitive package.

Use a Structured Salary Range

Establish a range of salaries for each position based on job level, performance, and market data, allowing for flexibility and fairness in compensation decisions.

Maintain Pay Secrecy

Protect employee privacy by keeping salary information confidential, promoting trust and preventing salary disparities that could lead to resentment.

Provide Clear and Consistent Compensation Communication

Communicate salary policies and expectations openly and transparently to employees, ensuring that they understand the basis for compensation decisions.

Promote a Culture of Fairness and Transparency

Create a work environment where employees feel valued and fairly compensated, fostering a sense of trust and motivation.

Continuously Evaluate and Improve Salary Practices

Conduct regular audits and evaluations of salary administration practices to identify areas for improvement and ensure compliance with relevant laws and regulations.

Impact on Colorado’s Labor Market

Increase in Exempt Employee Salaries

The new salary threshold will increase the salaries of exempt employees, potentially leading to a reduction in wage disparities between exempt and non-exempt employees.

Shift in Hiring Practices

Employers may reconsider their hiring practices to avoid misclassifying employees as exempt and potentially facing penalties. Some may opt to hire more non-exempt employees or adjust job responsibilities to meet the new threshold.

Impact on Small Businesses

Small businesses with limited resources may face challenges in adjusting to the new threshold. They may need to re-evaluate compensation structures or reconsider the number of exempt employees they hire.

Compliance Costs

Employers will incur additional costs associated with compliance with the new regulation, such as auditing payroll records, updating employee classifications, and training supervisors.

Increased Enforcement

The Colorado Department of Labor and Employment (CDLE) is expected to increase enforcement efforts to ensure compliance with the new threshold. Employers should proactively review their employee classifications to avoid potential penalties.

Impact on Unionized Workers

The new threshold may have implications for unionized workers whose collective bargaining agreements specify exempt status. Unions and employers may need to revisit these agreements to ensure alignment with the revised regulation.

Impact on Overtime Pay

The increase in exempt employee salaries could reduce the number of hours worked overtime, potentially saving employers on overtime pay expenses.

Economic Impact

The new salary threshold may have a minor impact on Colorado’s overall economy. Some businesses may experience increased labor costs, while others may benefit from reduced overtime pay expenses.

Training and Education

Employers should provide training to supervisors and HR professionals to ensure understanding of the revised exempt salary threshold and its implications.

Ongoing Monitoring

The CDLE will continue to monitor the implementation of the new threshold and may make adjustments as needed to ensure its effectiveness and fairness.

Colorado Exempt Salary Threshold 2025

In accordance with the Colorado Department of Labor and Employment (CDLE), the minimum salary required for an employee to qualify for an exemption from overtime pay will increase to $92,600 effective January 1, 2025. This threshold applies to employees classified as professional, administrative, or executive under the Fair Labor Standards Act (FLSA).

To maintain exempt status, employees must meet the FLSA’s duties test, which assesses their job responsibilities and level of autonomy. The salary threshold is used as a preliminary filter to determine eligibility, but it does not guarantee automatic exemption.

People Also Ask About Colorado Exempt Salary Threshold 2025

When does the new salary threshold take effect?

January 1, 2025.

How much will the salary threshold increase to?

$92,600.

What types of employees are affected by the new threshold?

Employees classified as professional, administrative, or executive under the FLSA.

Is the salary threshold the only requirement for an employee to be exempt?

No, employees must also meet the FLSA’s duties test, which assesses their job responsibilities and level of autonomy.

What should employers do to prepare for the new salary threshold?

Employers should review their current exempt employees’ salaries to ensure they meet the new threshold. Additionally, they may need to review their job descriptions and make any necessary adjustments to ensure employees continue to meet the duties test.

5 Crucial Things to Know About the 2025 Salary Threshold for Exempt Employees

5 Crucial Things to Know About the 2025 Salary Threshold for Exempt Employees

Featured Image: https://tse1.mm.bing.net/th?q=$title$

Paragraph 1:
Attention all employers and HR professionals! The year 2025 marks a pivotal shift in the landscape of employee compensation, with the long-awaited increase in the salary threshold for exempt employees. This landmark change, first hinted at years ago, has finally come to fruition, promising to reshape the way we classify and remunerate our workforce. As we transition into a new era of salary threshold regulations, it is imperative for businesses to stay informed and adapt their practices accordingly.

Transition:
Understanding the implications of this updated threshold is crucial for ensuring compliance, fostering employee morale, and maintaining a competitive edge in today’s labor market.

Paragraph 2:
The revised salary threshold for exempt employees, set to take effect on December 1, 2025, will rise to a substantial level, significantly higher than the previous threshold. This means that employees earning below the new threshold may now be eligible for overtime pay, while those above the threshold will retain their exempt status. The exact figure for the new threshold will be released in September 2025, allowing employers ample time to prepare and adjust their compensation structures. Additionally, the threshold will be adjusted annually based on inflation, ensuring its relevance in a dynamic economic environment.

Transition:
The impact of this change extends beyond compliance and into the realm of talent management and employee retention.

Paragraph 3:
As employers navigate the implications of the increased salary threshold, it is essential to recognize its potential impact on employee morale and motivation. By extending overtime eligibility to a broader pool of employees, organizations can demonstrate a commitment to fair compensation practices and a recognition of the value of their workforce. Furthermore, the increased threshold may attract and retain top talent by offering a competitive compensation package. The transition to the new salary threshold presents a unique opportunity for businesses to reassess their compensation strategies, promote a positive workplace culture, and stay ahead of the curve in the evolving labor landscape.

Proposed Changes

The Department of Labor (DOL) has proposed significant changes to the salary threshold for exempt employees under the Fair Labor Standards Act (FLSA). The proposed changes would increase the minimum salary level required for an employee to be classified as exempt from overtime pay from $23,660 to $50,440 per year.

Legislative Updates

The proposed changes have generated significant interest and debate. Several legislative proposals have been introduced in Congress to address the issue, including bills that would increase the salary threshold to $47,476 or $56,160 per year.

Impact on Employers

The proposed changes to the salary threshold are expected to have a significant impact on employers. Employers will need to carefully review their pay practices to ensure compliance with the new regulations. The changes may also lead to increased overtime expenses for employers.

Benefits for Employees

The proposed changes are expected to benefit employees by ensuring that more workers are eligible for overtime pay. This could lead to increased wages and improved working conditions for employees.

Current Status

The DOL’s proposed changes to the salary threshold are currently in the public comment period. The DOL is expected to issue a final rule in 2023.

State Laws

In addition to the federal FLSA, many states have their own laws governing overtime pay. These state laws may have different salary thresholds for exempt employees. Employers should be aware of the specific requirements in each state where they operate.

Summary of State Salary Thresholds for Exempt Employees

State Salary Threshold
California $64,480
New York $60,000
Pennsylvania $23,660 (federal threshold)

Salary Threshold for Exempt: 2025 Outlook

The Department of Labor’s (DOL) proposed salary threshold for exempt employees under the Fair Labor Standards Act (FLSA) has been a topic of ongoing debate. The current salary threshold of $23,660 per year was set in 2004 and has not been updated since. The DOL’s proposed increase to $50,440 per year would significantly expand the number of employees eligible for overtime pay.

The proposed change aims to ensure that employees are fairly compensated for their work. Supporters argue that raising the salary threshold would protect low-wage workers from being misclassified as exempt and ensure they receive overtime pay for working overtime hours. Opponents, on the other hand, contend that the increase would impose an undue burden on businesses, particularly small businesses, and lead to unintended consequences such as reduced hiring or employee benefits.

The DOL is expected to finalize the salary threshold rule in 2023, with the new threshold likely to take effect in 2025. The final rule may differ from the proposed change, and it remains to be seen how the revised threshold will impact employers and employees alike.

People Also Ask About Salary Threshold for Exempt 2025

What is the current salary threshold for exempt employees?

The current salary threshold for exempt employees is $23,660 per year.

What is the proposed salary threshold for exempt employees?

The DOL has proposed raising the salary threshold for exempt employees to $50,440 per year.

When is the proposed salary threshold expected to take effect?

The proposed salary threshold is expected to take effect in 2025, after the DOL finalizes the rule in 2023.

What are the potential impacts of the proposed salary threshold?

The proposed salary threshold increase could significantly expand the number of employees eligible for overtime pay, potentially impacting both employers and employees. Employers may face increased labor costs, while some employees may benefit from additional overtime compensation.

4. What is the New York Exempt Salary Threshold for 2025?

5 Crucial Things to Know About the 2025 Salary Threshold for Exempt Employees

$title$

The New York State Department of Labor (NYSDOL) has announced significant changes to the exempt salary threshold for overtime pay. Effective December 31, 2023, the threshold will increase from $48,500 to $68,500. This substantial adjustment aims to ensure that more employees receive fair compensation for overtime work and aligns with the rising cost of living in New York State. The revised threshold reflects the department’s ongoing commitment to protecting the rights of workers and promoting a just and equitable workplace.

The increase in the exempt salary threshold is a testament to the NYSDOL’s dedication to safeguarding employees’ rights. By requiring employers to pay overtime to employees earning below the threshold, the department ensures that workers are adequately compensated for their time and effort. Additionally, the adjustment aligns with the current economic landscape, where inflation and rising living expenses have made it essential to increase the income of low- and middle-income earners. This move will undoubtedly have a positive impact on the financial well-being of countless employees throughout the state.

The revised exempt salary threshold serves as a reminder of the vital role that government agencies play in ensuring fairness and equity in the workplace. The NYSDOL’s unwavering commitment to protecting workers’ rights is commendable and sets an example for other jurisdictions to follow. Moreover, the increase in the threshold aligns with the growing trend toward raising minimum wages and expanding overtime protections for employees. As the cost of living continues to rise, it is imperative that government agencies and policymakers prioritize measures that support the financial security of workers and promote a just and equitable society.

2025 New York Exempt Salary Threshold: A Comprehensive Guide

2025 New York Exempt Salary Threshold: A Comprehensive Guide

The New York State Department of Labor (NYSDOL) has announced new salary thresholds for exempt employees in 2025. These thresholds are designed to ensure that only those employees who are truly exempt from overtime pay are classified as such. The new thresholds are significantly higher than the current thresholds, and they will affect a large number of employees.

To be classified as exempt, an employee must meet all of the following criteria:

  • The employee must be paid a salary of at least $1,180 per week ($61,360 per year) or $58 per hour.
  • The employee must perform job duties that are primarily executive, administrative, or professional in nature.
  • The employee must have the authority to exercise independent judgment and discretion in the performance of their job duties.

The following table shows the new salary thresholds for exempt employees in New York State:

Year Annual Salary Hourly Wage
2023 $48,500 $23.32
2024 $52,000 $25.00
2025 $61,360 $29.50

Employers should review the new salary thresholds and make any necessary adjustments to their payroll systems. Failure to comply with the new thresholds could result in significant penalties.

The Evolving Definition of Exempt Employees in New York

New York State’s Exempt Salary Threshold

In 2023, New York State raised the minimum salary threshold for exempt employees to $62,400. This means that employees earning less than $62,400 per year must be paid overtime for any hours worked over 40 in a week. This threshold will increase to $68,400 in 2024 and $76,500 in 2025.

Exemptions Based on Job Duties

In addition to the salary threshold, New York State also has a number of exemptions based on job duties. These exemptions include:

Exemption Qualifying Duties
Executive Primarily manages the enterprise, customarily and regularly directs the work of two or more employees, and has the authority to hire or fire.
Administrative Primarily performs office or non-manual work directly related to management policies or general business operations, and customarily and regularly exercises discretion and independent judgment.
Professional Primarily performs work requiring knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction and study, as distinguished from a general academic education and from an apprenticeship, and customarily and regularly exercises discretion and independent judgment.

Compliance Considerations for Employers

1. Review Current Exempt Classifications

Employers should review their current exempt classifications to ensure they meet the new salary threshold. Employees who are currently classified as exempt but fall below the new threshold may need to be reclassified as non-exempt.

2. Update Policies and Procedures

Employers must update their policies and procedures to reflect the new overtime rules. This includes updating employee handbooks, payroll systems, and timekeeping procedures. Employers should also provide training to managers and supervisors on the new requirements.

3. Phased-in Approach to Compliance

New York has implemented a phased-in approach to compliance with the new exempt salary threshold over the next three years. The salary thresholds for 2023, 2024, and 2025 are as follows:

Year Salary Threshold
2023 $885 per week/$45,585 per year
2024 $1,007.50 per week/$52,390 per year
2025 $1,125 per week/$58,500 per year

Employers may need to adjust their payroll systems and classification policies gradually to ensure compliance with the new overtime rules.

Impact on Overtime and Minimum Wage Exemptions

Exemptions for Overtime Pay

The new salary threshold will impact which employees are exempt from overtime pay. Currently, employees earning less than $684 per week ($35,568 annually) are eligible for overtime pay for hours worked beyond 40 per week. However, under the new rule, employees earning less than $1,033 per week ($53,600 annually) will be eligible for overtime pay.

Exemptions for Minimum Wage

The salary threshold will also affect which employees are exempt from minimum wage requirements. Currently, employees earning less than $30 per hour ($62,400 annually) are exempt from minimum wage laws. Under the new rule, employees earning less than $52.65 per hour ($109,412 annually) will be exempt.

Impact on Specific Industries

The increased salary threshold will have a significant impact on certain industries that rely heavily on overtime and low-wage labor. For example, the healthcare, retail, and food service industries are likely to face increased labor costs and may need to adjust their staffing models.

Industry Impact
Healthcare Increased labor costs, potential staffing shortages
Retail Reduced overtime pay for employees below the threshold, potential job losses
Food Service Higher wages for tipped employees, increased pressure on profit margins

Salary Requirements for Different Exemption Categories

Beginning December 31, 2023, New York State will increase its salary threshold for overtime exemptions. Here’s a breakdown of the new salary requirements for the various exemption categories:

Executive Exemption

An employee must earn an annual salary of at least $1,181.25 per week, or $61,500 per year, to qualify for the executive exemption.

Administrative Exemption

To be considered exempt under the administrative exemption, an employee must have an annual salary of at least $1,030.60 per week, or $53,591.20 per year.

Professional Exemption

For the professional exemption, an employee must earn an annual salary of at least $923.08 per week, or $48,007.04 per year.

Outside Sales Exemption

Employees in outside sales are exempt from overtime if they earn an annual salary of at least $637.50 per week, or $33,125 per year.

Computer-Related Exemption

Employees in computer-related occupations can be exempt from overtime if they earn an annual salary of at least $1,622.50 per week, or $84,430 per year. The duties of the position must also meet specific criteria related to computer science or information technology.

Exemption Category Weekly Salary Threshold Annual Salary Threshold
Executive $1,181.25 $61,500
Administrative $1,030.60 $53,591.20
Professional $923.08 $48,007.04
Outside Sales $637.50 $33,125
Computer-Related $1,622.50 $84,430

Consequences of Misclassification

Misclassification of employees as exempt can have severe consequences for both employers and employees. The following are some of the potential consequences:

1. Back Wages and Overtime Pay

Employees who are misclassified as exempt may be entitled to back wages and overtime pay for all hours worked over 40 per week.

2. Damages and Penalties

Employers who misclassify employees may be liable for damages and penalties, including liquidated damages equal to the amount of unpaid overtime wages.

3. Loss of Exemption

If an employee is misclassified as exempt, the employer may lose the exemption for all employees in the same job category.

4. Reputational Damage

Misclassification can damage an employer’s reputation and lead to negative publicity.

5. Increased Costs

Misclassification can increase an employer’s costs by requiring them to pay back wages, overtime pay, and penalties.

6. Potential Criminal Charges

In extreme cases, employers who willfully misclassify employees may face criminal charges.

Potential Consequences

Example

Back Wages and Overtime Pay

An employee who is misclassified as exempt may be entitled to back wages and overtime pay for all hours worked over 40 per week.

Damages and Penalties

An employer who misclassifies employees may be liable for damages and penalties, including liquidated damages equal to the amount of unpaid overtime wages.

Loss of Exemption

If an employee is misclassified as exempt, the employer may lose the exemption for all employees in the same job category.

Reputational Damage

Misclassification can damage an employer’s reputation and lead to negative publicity.

Increased Costs

Misclassification can increase an employer’s costs by requiring them to pay back wages, overtime pay, and penalties.

Potential Criminal Charges

In extreme cases, employers who willfully misclassify employees may face criminal charges.

Best Practices for Determining Exempt Status

1. Review the Job Description

Start by examining the job description to identify the employee’s primary duties and responsibilities. Ensure they align with the exempt job duties defined by the FLSA.

2. Conduct a Job Analysis

Observe the employee’s actual work tasks to verify their alignment with the job description. This can be achieved through a comprehensive job analysis.

3. Consider the Level of Autonomy

Assess the employee’s level of independence in performing their duties. Exempt employees typically have significant autonomy in managing their work.

4. Evaluate Supervision

Determine the extent to which the employee is supervised. Exempt employees are generally self-directed and receive minimal supervision.

5. Assess Creativity and Problem-Solving

Consider the employee’s involvement in creative or non-routine problem-solving activities. Exempt employees often exercise creativity and independent judgment.

6. Review Training and Experience

Examine the employee’s education, training, and experience to ensure they meet the specialized knowledge or skills required for exempt status.

7. Document the Analysis

Thoroughly document the analysis process, including the factors considered, the evidence gathered, and the conclusion reached. This will provide support for the exemption determination.

To further aid in this process, consider using a standardized exempt status assessment template. The following table provides a sample template that can be customized to meet specific needs:

Factor Considerations
Job Duties Review job description and conduct job analysis
Autonomy Assess level of independence in performing tasks
Supervision Determine the degree of supervision received
Creativity and Problem-Solving Evaluate involvement in non-routine activities
Training and Experience Review education, training, and skills
Documentation Record analysis process and conclusion

Industry-Specific Implications of the New Threshold

The newly raised exempt salary threshold will have varying implications across different industries, as summarized below:

Retail and Hospitality

These sectors often employ low-wage workers, leading to significant cost increases due to the need to reclassify many employees as non-exempt and provide overtime pay.

Healthcare

Healthcare providers may face challenges managing labor costs as they adjust to the new threshold, particularly in roles such as nurses, medical assistants, and technicians.

Financial Services

The impact on financial institutions is expected to be moderate, as many employers already exceed the new threshold for exempt positions.

Technology and Engineering

Companies in these industries typically pay higher salaries, so the new threshold is unlikely to have a substantial impact on their exempt employee classifications.

Education

Educational institutions may need to review the classification of administrative and support staff to ensure compliance with the revised threshold.

Nonprofit Organizations

Nonprofits often rely on lower-paid exempt employees. The new threshold may require them to reconsider organizational structures and compensation practices.

Construction

The construction industry employs a large number of hourly workers. The increased threshold may lead to reclassification of some supervisors and managers as non-exempt.

Manufacturing

Manufacturers with significant overtime utilization may face increased labor costs as they adjust to the new threshold. However, the impact may be mitigated in industries with high levels of automation.

Industry Potential Impact
Retail High cost increases due to reclassification of low-wage workers
Healthcare Challenges managing labor costs for nurses, medical assistants, and technicians
Technology Minimal impact due to high existing salaries
Nonprofit Need to reconsider organizational structures and compensation practices
Manufacturing Increased labor costs for industries with high overtime utilization

Legal Challenges

The new salary threshold has been met with legal challenges. Some argue that it is too low and will not effectively exempt many employees from overtime pay. Others argue that it is too high and will place an undue burden on businesses. The legal challenges are likely to continue until the issue is resolved by the courts.

Potential Changes

The new salary threshold is likely to change in the future. The Department of Labor has indicated that it will review the threshold every three years and make adjustments as necessary. It is possible that the threshold will be increased or decreased in the future, depending on economic conditions and other factors.

Industries That May Be Affected

The new salary threshold is likely to have a significant impact on certain industries. These industries include:

  • Retail
  • Hospitality
  • Healthcare
  • Education
  • Nonprofit organizations

Retail

The retail industry is one of the largest employers of low-wage workers. Many retail employees earn less than the new salary threshold. As a result, the new threshold is likely to have a significant impact on the retail industry. Some retailers may be forced to raise wages or reduce hours in order to comply with the new law.

Hospitality

The hospitality industry is another large employer of low-wage workers. Many hospitality employees earn less than the new salary threshold. As a result, the new threshold is likely to have a significant impact on the hospitality industry. Some hotels and restaurants may be forced to raise wages or reduce hours in order to comply with the new law.

Healthcare

The healthcare industry is a large employer of both low-wage and high-wage workers. Many healthcare workers earn more than the new salary threshold. However, some healthcare workers, such as certified nursing assistants, earn less than the threshold. As a result, the new threshold is likely to have a mixed impact on the healthcare industry. Some healthcare providers may be forced to raise wages for certain employees in order to comply with the new law.

Education

The education industry is a large employer of both low-wage and high-wage workers. Many teachers earn more than the new salary threshold. However, some education support staff, such as paraprofessionals, earn less than the threshold. As a result, the new threshold is likely to have a mixed impact on the education industry. Some schools may be forced to raise wages for certain employees in order to comply with the new law.

Nonprofit organizations

Nonprofit organizations are often large employers of low-wage workers. Many nonprofit employees earn less than the new salary threshold. As a result, the new threshold is likely to have a significant impact on the nonprofit sector. Some nonprofits may be forced to raise wages or reduce hours in order to comply with the new law.

Phase-In Schedule

The new exempt salary threshold will be phased in gradually over a three-year period, with the final increase taking effect on December 31, 2025.

Phase Effective Date Salary Threshold
Phase 1 December 31, 2023 $684 per week ($35,568 per year)

Phase 2 December 31, 2024 $850 per week ($44,200 per year)

Phase 3 December 31, 2025 $1,125 per week ($58,500 per year)

Impact on Businesses

The increased exempt salary threshold will have a significant impact on businesses in New York, particularly those with a large number of low-wage workers. Employers will need to carefully review their employee classifications and make appropriate adjustments to ensure compliance with the new regulations.

Enforcement and Penalties

The New York Department of Labor (NYDOL) will be responsible for enforcing the exempt salary threshold regulations. Employers who fail to comply may face penalties, including fines and back wages. The NYDOL may also conduct audits and inspections to ensure compliance.

New York Exempt Salary Threshold 2025: A Comprehensive Overview

Following years of discussions and deliberations, New York State has officially announced the new exempt salary threshold for 2025. The threshold, which serves as the minimum annual salary required for employees to qualify for overtime exemption, has been significantly adjusted to reflect the rising cost of living and economic realities.

Effective from January 1st, 2025, the minimum exempt salary in New York will be $1,125 per week, or $58,500 annually. This represents a substantial increase from the current threshold of $675 per week, or $35,100 annually. The updated threshold is intended to ensure that employees who are truly exempt from overtime receive fair compensation commensurate with their responsibilities.

The new exempt salary threshold is not only important for employers and employees but also has implications for the state’s economy. By ensuring that exempt employees are adequately compensated, New York hopes to boost worker morale, productivity, and overall economic growth.

People Also Ask:

Will the new salary threshold apply to all employees?

No, the new salary threshold only applies to employees who are classified as exempt from overtime. This typically includes employees in managerial, professional, or administrative roles.

What happens if an exempt employee earns less than the new threshold?

If an exempt employee earns less than the new threshold, they may no longer qualify for overtime exemption and will be entitled to overtime pay as per the Fair Labor Standards Act.

How will the new threshold impact businesses?

Businesses may need to adjust their compensation structures to comply with the new threshold. Some may opt to increase salaries for exempt employees, while others may reclassify certain positions to non-exempt status.

5 Things You Need to Know About the Washington Exempt Salary Threshold in 2025

5 Crucial Things to Know About the 2025 Salary Threshold for Exempt Employees
$title$

In a groundbreaking move, the Washington State Department of Labor & Industries (L&I) has announced a significant increase in the exempt salary threshold for overtime pay. This groundbreaking change, effective January 1, 2025, will impact thousands of salaried employees across the state. With this bold step, Washington becomes one of the leading states in the nation to recognize the evolving nature of work and the need to ensure fair compensation for all workers.

The new threshold, set at $1,521 per week or $79,152 annually, marks a substantial increase from the previous level of $1,155 per week. This adjustment reflects the rising cost of living and the increasing responsibilities that many salaried employees now shoulder. By raising the threshold, L&I acknowledges that many individuals who were previously classified as exempt from overtime pay should now be eligible for this important protection. Additionally, this change will help to ensure that salaries accurately reflect the value that these employees bring to their organizations.

The impact of this policy shift will be far-reaching. For employees, it means increased earning potential and recognition for their contributions. Employers, on the other hand, will need to carefully review their compensation structures and consider the implications for their workforce. Transitioning employees from exempt to non-exempt status may require adjustments to payroll systems, scheduling, and job descriptions. However, by embracing this change, employers can demonstrate their commitment to fair labor practices and foster a more equitable workplace.

Washington State’s 2025 Exempt Salary Threshold: An Overview

Washington State’s 2025 Exempt Salary Threshold: An Overview

The Washington State Department of Labor & Industries (L&I) has announced the new exempt salary threshold for 2025. This threshold determines which employees are eligible for overtime pay and other benefits under state law. The new threshold will take effect on January 1, 2025.

The 2025 exempt salary threshold will be $1,825 per week, or $94,880 per year. This represents a significant increase from the current threshold of $1,284 per week, or $66,528 per year.

The new threshold is intended to ensure that Washington State’s overtime laws are fair and equitable for both employers and employees. The L&I has determined that the current threshold is no longer adequate to protect workers from being misclassified as exempt and denied overtime pay.

Impact on Employers

The new exempt salary threshold will have a significant impact on employers in Washington State. Employers will need to review their payroll practices to ensure that all employees who are eligible for overtime pay are being paid correctly.

Employers may also need to consider reclassifying some employees who are currently exempt as non-exempt. This will ensure that these employees are eligible for overtime pay and other benefits under state law.

Impact on Employees

The new exempt salary threshold will have a positive impact on employees in Washington State. Employees who are eligible for overtime pay will now be more likely to receive it.

The new threshold will also help to ensure that employees are not misclassified as exempt and denied overtime pay and other benefits.

Understanding the Criteria for Exemption in Washington

Salary Basis Test

Employees must be paid on a salary basis to meet the salary basis test. This means they must receive a fixed amount of compensation for each pay period, regardless of the number of hours worked. The salary must be paid at least monthly. Hourly employees or those paid on a commission basis do not qualify as exempt under this provision.

Duties Test

Employees must perform exempt duties to qualify for the exemption. Washington uses a six-part test to determine if an employee’s duties are exempt:

  1. Exercise discretion and independent judgment in performing duties
  2. Have authority to make decisions that affect the employer’s business
  3. Supervise two or more other employees
  4. Perform specialized and technical work
  5. Require advanced knowledge or education
  6. Earn compensation at or above the salary threshold ($51,275 in 2023 and increasing to $64,995 in 2025)

Computer-Related Exemption

Employees who primarily perform computer-related duties may be eligible for an exemption. To qualify, employees must devote 80% or more of their time to performing computer-related tasks, such as:

  1. Programming
  2. Software development
  3. Systems analysis
  4. Network administration

The Impact of the New Threshold on Employers and Employees

Administrative Exemption Changes

The new salary threshold will significantly impact the number of employees who qualify for the administrative exemption under Washington law. Currently, an employee must earn a minimum of $912 per week ($47,304 per year) to be exempt from overtime pay. However, under the new rule, the salary threshold will increase to $1,238 per week ($64,296 per year) effective January 1, 2025. This means that many employees who were previously considered exempt will now be eligible for overtime pay.

Impact on Employers

The increase in the salary threshold will likely lead to increased costs for employers. Employers will now need to pay overtime to employees who were previously exempt, which could impact profit margins. Additionally, employers may need to adjust their job classifications and pay structures to ensure compliance with the new regulations.

Impact on Employees

The increase in the salary threshold will be beneficial for many employees, as they will now be eligible for overtime pay. This could result in increased wages and improved working conditions for employees. Additionally, the new rule may provide employees with more bargaining power when negotiating their salaries.

Compliance Requirements for Employers

Employers must comply with the following requirements to ensure compliance with the new exempt salary threshold in Washington:

1. Update Payroll Systems

Employers must update their payroll systems to reflect the new salary threshold. Employees who fall below the new threshold should be reclassified as non-exempt and eligible for overtime pay.

2. Provide Written Notice

Employers must provide written notice to all affected employees about the changes to the salary threshold and their potential impact on their classification and compensation.

3. Conduct Job Duty Analysis

Employers may need to conduct job duty analyses for positions that are borderline exempt to determine their appropriate classification under the new threshold.

4. Training and Education

Employers should provide training and education to managers and supervisors on the new salary threshold, the definition of exempt and non-exempt status, and the calculation of overtime pay.

Specifically, training should cover:

Topic Details
Identifying Exempt Employees Understanding the criteria for exempt status, including salary threshold, job duties, and supervisory responsibilities.
Calculating Overtime Pay Explaining the methods for calculating overtime pay, including regular rate of pay and time-and-a-half.
Recordkeeping and Documentation Highlighting the importance of maintaining accurate records of employee hours worked, overtime pay, and job duties.

Enforcement Mechanisms for the New Threshold

The Washington State Department of Labor & Industries (L&I) is responsible for enforcing the new exempt salary threshold. L&I has a variety of enforcement mechanisms at its disposal, including:

  • Inspections

    • L&I inspectors may visit workplaces to verify that employers are complying with the new threshold. Inspectors will review payroll records and interview employees to determine if they are properly classified as exempt.

  • Investigations

    • L&I may investigate complaints from employees who believe they are being misclassified as exempt. L&I will review the employee’s job duties and responsibilities to determine if they meet the criteria for exemption.

  • Enforcement actions

    • L&I may take enforcement actions against employers who violate the new threshold. Enforcement actions may include:

    • Issuing fines
    • Ordering employers to reclassify employees as nonexempt
    • Requiring employers to pay back wages to employees who were misclassified as exempt

  • Civil penalties

    • Employers who willfully violate the new threshold may be subject to civil penalties of up to $5,000 per violation.

  • Criminal penalties

    • Employers who knowingly and intentionally violate the new threshold may be subject to criminal penalties, including fines and imprisonment.

    Enforcement Mechanism Description
    Inspections L&I inspectors visit workplaces to verify compliance with the new threshold.
    Investigations L&I investigates complaints from employees who believe they are being misclassified as exempt.
    Enforcement actions L&I may take enforcement actions against employers who violate the new threshold, including issuing fines, ordering employers to reclassify employees as nonexempt, and requiring employers to pay back wages to employees who were misclassified as exempt.
    Civil penalties Employers who willfully violate the new threshold may be subject to civil penalties of up to $5,000 per violation.
    Criminal penalties Employers who knowingly and intentionally violate the new threshold may be subject to criminal penalties, including fines and imprisonment.

    Exemptions for Specific Industries or Positions

    Computer Professionals

    Individuals employed as computer systems analysts, computer programmers, software engineers, and other similar positions are exempt from the overtime pay requirements if they meet the following criteria:

    • Consistently exercise independent judgment and discretion in the performance of their duties.
    • Are paid a salary of at least $970 per week (as of January 1, 2025).

    Licensed Professionals

    Licensed attorneys, physicians, dentists, certified public accountants, and registered nurses are exempt from overtime pay requirements regardless of their salary.

    Seasonal Industries

    Employees working in seasonal industries (e.g., canning, agriculture) may be exempt from overtime pay requirements if they work for an employer who employs less than 500 employees during the peak season.

    Executive, Administrative, and Professional Employees

    Employees who perform executive, administrative, or professional duties may be exempt from overtime pay if they meet the following criteria:

    • Primarily perform duties that are managerial, administrative, or professional in nature.
    • Are paid a salary of at least $1,350 per week (as of January 1, 2025).

    Outside Sales

    Employees who regularly work outside the office and solicit sales are exempt from overtime pay requirements regardless of their salary.

    Farm Workers

    Individuals employed in farming operations are exempt from overtime pay requirements.

    Health Care Professionals

    Health care professionals working in hospitals, nursing homes, or other health care facilities may be exempt from overtime pay requirements if they meet the following criteria:

    • Perform duties that are essential to the effective provision of patient care.
    • Are paid a salary of at least $750 per week (as of January 1, 2025).
    Year Salary Threshold
    2025 $970 per week
    2026 $1,030 per week
    2027 $1,090 per week
    2028 $1,150 per week

    Current Exempt Salary Threshold

    As of January 1, 2023, the current exempt salary threshold in Washington is $1,250 per week ($65,000 annually). Effective January 1, 2025, the threshold will increase to $1,880 per week ($97,920 annually).

    Considerations for Employers in Transitioning to the New Threshold

    1. Reclassifying Exempt Employees

    Employers may need to reclassify certain exempt employees as non-exempt if their salaries fall below the new threshold.

    2. Adjusting Salaries

    For exempt employees whose salaries are below the new threshold, employers may choose to adjust their salaries to meet or exceed it.

    3. Revisiting Classification Criteria

    Employers should review their classification criteria to ensure that they align with the updated salary threshold.

    4. Implementing Timekeeping Systems

    For non-exempt employees, employers must track their hours and pay overtime for any hours worked beyond 40 per week.

    5. Providing Training and Communication

    Employers should provide training to both managers and employees on the changes to the exempt salary threshold.

    6. Legal Compliance

    Employers must comply with all applicable overtime laws and regulations to avoid potential legal liability.

    7. Impact on Employee Benefits

    The reclassification of employees from exempt to non-exempt may impact their eligibility for certain employee benefits, such as overtime pay, paid time off, and health insurance. Employers should carefully consider these potential implications.

    Current Salary Threshold (2023) New Salary Threshold (2025)
    $1,250 per week ($65,000 annually) $1,880 per week ($97,920 annually)

    Legal Obligations for Employers Under the New Threshold

    Annual Salary Threshold

    As of January 1, 2023, employers must pay overtime to employees earning less than $832 per week, or $43,456 annually. This threshold will increase to $875 per week, or $45,500 annually, on January 1, 2024, and further to $1,026 per week, or $53,288 annually, on January 1, 2025.

    Duties Test

    To be classified as exempt, employees must meet both the salary threshold and the duties test. This test requires that employees primarily perform managerial, professional, or administrative duties.

    Recordkeeping

    Employers must maintain accurate records of employees’ hours worked and overtime pay earned. These records must be kept for at least three years.

    Notice of Coverage

    Employers must provide written notice to all employees covered by the overtime law. This notice must include the employee’s exemption status, the overtime rate, and the method for reporting overtime hours.

    Additional Compensation

    Employers may provide additional compensation to exempt employees, such as bonuses, commissions, or profit-sharing plans. However, these payments cannot be used to reduce the employee’s overtime pay.

    Retaliation Prohibited

    Employers cannot retaliate against employees who exercise their rights under the overtime law, such as filing a complaint or seeking overtime pay.

    Penalties for Violations

    Employers may face civil penalties, including fines, back wages, and attorney’s fees, for violating the overtime law.

    Other State Laws

    It’s important to note that Washington State’s overtime laws may differ from other states. Employers should consult with an employment attorney to ensure compliance with all applicable laws.

    Summary of the New Overtime Rules

    Effective Date Annual Salary Threshold Duties Test
    January 1, 2023 $43,456 Managerial, professional, or administrative duties
    January 1, 2024 $45,500 Managerial, professional, or administrative duties
    January 1, 2025 $53,288 Managerial, professional, or administrative duties

    Potential Challenges and Concerns Associated with the New Threshold

    1. Increased Strain on Employers

    The higher threshold may place a greater financial burden on employers, particularly small businesses with limited resources. They may need to increase wages for existing employees to meet the new minimum or hire additional staff to compensate for the exemption loss.

    2. Reduced Job Flexibility

    The new threshold may limit employers’ ability to offer flexible work arrangements, such as part-time or remote work, to employees who previously qualified for the overtime exemption. This could impact work-life balance and reduce opportunities for some individuals.

    3. Administrative Burdens

    Employers may face increased administrative challenges in determining which employees are exempt and non-exempt under the new threshold. This could result in time-consuming calculations and potential compliance issues.

    4. Competitive Disadvantage

    Washington employers may face a competitive disadvantage compared to those in neighboring states with lower exemption thresholds. This could discourage businesses from relocating or investing in the state.

    5. Wage Compression

    The higher threshold may compress wages for certain exempt employees who would have previously earned overtime pay. This could result in a narrower pay gap between exempt and non-exempt workers.

    6. Job Loss

    In some cases, employers may opt to eliminate positions or reduce hours for employees who no longer meet the exemption criteria. This could result in job loss or reduced income for affected individuals.

    7. Impact on Low-Wage Earners

    The new threshold may disproportionately impact low-wage earners who previously qualified for the overtime exemption. These individuals may see their earnings decrease without any corresponding increase in job responsibilities.

    8. Loss of Overtime Pay

    Employees who previously qualified for the overtime exemption may lose the additional income they earned through overtime work. This could impact their financial well-being and ability to meet expenses.

    9. Implementation Challenges

    Employers may encounter difficulties implementing the new threshold effectively. This includes identifying affected employees, adjusting payroll systems, and ensuring compliance with the revised regulations. The transition period may require significant time, effort, and external support.

    Year Proposed Exemption Salary Threshold
    2023 $1,440
    2024 $1,560
    2025 $1,760

    Outlook and Future Developments Regarding the Exempt Salary Threshold

    Next Steps

    The DOL is expected to propose a new rule for the federal exempt salary threshold in early 2025. The rule is likely to increase the salary threshold to a level that is higher than the current $684 per week ($35,568 per year). The exact amount of the increase is unknown.

    Impact on Businesses

    An increase in the exempt salary threshold will have a significant impact on businesses. Businesses will need to review their payroll and compensation practices to ensure that they are in compliance with the new rule. Businesses may also need to increase the salaries of some employees who are currently classified as exempt.

    Impact on Employees

    An increase in the exempt salary threshold will have a positive impact on employees. Employees who are currently classified as exempt will receive a pay increase. Employees who are currently classified as non-exempt may be eligible for overtime pay.

    Enforcement

    The DOL will be responsible for enforcing the new exempt salary threshold rule. The DOL may conduct audits of businesses to ensure that they are in compliance with the rule. Businesses that violate the rule may be subject to penalties.

    Other Considerations

    In addition to the DOL’s proposed rule, there are a number of other factors that could affect the exempt salary threshold in the future. These factors include:

    * Changes in the economy
    * Changes in the labor market
    * Court decisions
    * State and local laws

    It is important for businesses and employees to be aware of these factors and how they could affect the exempt salary threshold in the future.

    Additional Resources

    * [Department of Labor: Fair Labor Standards Act](https://www.dol.gov/agencies/whd/flsa)
    * [Society for Human Resource Management: Exempt Salary Threshold](https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/exempt-salary-threshold.aspx)
    * [National Employment Law Project: Exempt Salary Threshold](https://www.nelp.org/publication/exempt-salary-threshold/)

    Washington Exempt Salary Threshold 2025: A Perspective

    The Washington State Department of Labor & Industries (L&I) has proposed increasing the exempt salary threshold for certain employees from $45,500 to $60,000, effective January 1, 2025. This proposed change aims to ensure that low-wage workers are adequately compensated and protected under Washington’s minimum wage and overtime laws.

    The proposed increase would impact employees who are classified as exempt from overtime pay under the FLSA. To be considered exempt, employees must meet specific duties and salary requirements. The proposed increase in the salary threshold would ensure that only highly compensated employees are classified as exempt.

    Supporters of the proposed increase argue that it is necessary to address wage stagnation and ensure fair pay for workers. They contend that the current threshold is too low and does not keep pace with the rising cost of living. Additionally, they believe that the increase would reduce the number of misclassified employees and ensure that they receive the overtime pay they are entitled to.

    Opponents of the proposed increase argue that it would place an undue burden on businesses and limit their ability to attract and retain talent. They contend that the increase would increase their labor costs and make it more difficult to compete with businesses in neighboring states with lower salary thresholds.

    The L&I is currently seeking public comment on the proposed change. The public comment period will close on December 31, 2022. The L&I will consider all submitted comments before making a final decision on whether to adopt the proposed increase.

    People Also Ask About Washington Exempt Salary Threshold 2025

    Is the proposed salary threshold increase a certainty?

    No, the proposed salary threshold increase is not a certainty. The L&I is currently seeking public comment on the proposed change and will consider all submitted comments before making a final decision.

    What is the current exempt salary threshold in Washington?

    The current exempt salary threshold in Washington is $45,500.

    When would the proposed salary threshold increase take effect?

    If adopted, the proposed salary threshold increase would take effect on January 1, 2025.