state minimum salary for exempt employees 2020

Effective January 1, 2020, the federal government is raising the minimum salary requirement for exempt positions from $455 to $684. According to the new exempt employee law that went into effect January 1, 2020, all executive, administrative, professional, computer, and outside sales exemptions require that the employee … As with any business decision, all factors should be considered before making a final determination. Just because an employer pays a salary that satisfies the new federal threshold does not mean that the employee is exempt under the minimum wage law of a state where the employee works. To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $684* per week. Salary Threshold for Exempt Employees (2020) The tiered salary thresholds across the state are also rising in-line with the minimum wage. Salary-basis test. A federal district court in Texas agreed and blocked the rules from taking effect. To be considered "exempt," these employees must generally satisfy three tests: Salary-level test. Washington labor costs are about to increase for Washington employers with minimum wage employees and, more significantly, for exempt employees currently in the salary range of $35,000 to $40,000 annually. The FLSA's minimum salary requirement is set to remain the same in 2021. Minimum Wage (2021) In keeping with the gradual increase in the State’s minimum wage levels, the new tiered rates across the State, effective December 31, 2020, are listed below. $4,506.67 per month (or $54,080.00 annually) if the employee works for an employer of more than 25 people.⁠40. Likewise, the rule increases the salary level for the highly compensated employee exemption to $107,432. Aside from the legalities, there is the consideration of the “psychological contract” between employee and employer. Effective January 1, 2020, the federal government is raising the minimum salary requirement for exempt positions from $455 to $684. Exempt Executive, Administrative, Professional and Computer Employees (EAP) Under this rule, employers must pay salaried exempt EAP employees at least $684 per week on a salary basis. Minimum Threshold 2019. Bill also has extensive litigation experience, representing employers in federal and state courts and administrative agencies such as the U.S. and Illinois Departments of Labor and the Equal Employment Opportunity Commission. FOR WORKERS; FOR EMPLOYERS There are two aspects to this review – determine whether employees currently in exempt positions meet both the new minimum salary requirement and the duties test for an overtime exemption. For example, if the usual schedule is 45 to 50 hours per week, the agreement may be that $500 will cover all the straight time up to 50 hours per week. That amount plus the regular salary of $500 would amount to $527.78. Note, however, that under Maine law, the minimum salary level for exempt employees must exceed 3000 times the applicable state minimum wage—or the rate established by the U.S. DOL, whichever is higher. Bill also regularly counsels…. Rulka Human Resources Consulting, All Rights Reserved, New Minimum Salary for Exempt Employees as of 1/1/2020: How to Minimize the Impact, Employment Law for Managers and Supervisors. Additional changes include: The new rule is set to take effect on January 1, 2020 and increase the number of overtime-eligible employees by 1.3 million. The new regulations require that as of Jan. 1, 2020, an employee in a white collar exempt position must be paid at least $684 per week. These new minimums will take effect on January 1, 2020. So, exempt employees in Massachusetts will also have to be paid at the new higher salary threshold beginning January 1, 2020. *Note: The Department of Labor revised the regulations located at 29 C.F.R. To re-structure the pay, the employer and employee must agree in advance on a given salary that will cover a certain number of hours. The Final Rule goes into effect on January 1, 2020. There are options for reducing the impact of the new overtime rule. Conduct an audit. This means that the minimum salary for exempt employees in 2020 is either: $4,160.00 per month (or $49,920.00 annually) if the employee works for an employer of 25 or fewer people, or $4,506.67 per month (or $54,080.00 annually) if the employee works for an employer of more than 25 people. Employers … New York City Employers (11 or more employees) / Executive and Administrative Exemptions. The duties tests remain intact. The regular rate must be calculated weekly, using all earnings for the week divided by all hours worked that week. The United States Department of Labor issued a final regulation to take effect January 1, 2020, raising the minimum overtime salary threshold for exempt employees under federal law to $35,568. The minimum annual salary is $35,568.00, or $684.00 per week. Read on for everything you need to know about the new ruling! Federal / Executive, Administrative, and Professional Exemptions. That is up from $13.50 an hour in 2020. is a labor and employment boutique law firm representing private and public sector employers in all aspects of labor and employment law, including counseling and compliance, employment litigation, union-related matters, and employee benefits. No changes to the duties test have been made. The new salary level is equivalent to $35,568 per year for a full-time worker. On December 31, 2019, the state minimum weekly salary for administrative and executive employees will range from $885.00 per week for employees outside of New York City and Nassau, Suffolk and Westchester counties, to $1,125.00 per week for employees who work in New York City for large employers and Fast Food Establishments. That translates to thousands of extra payroll dollars ($11,908 annually) for companies like retail, dry cleaners, restaurants, cleaning companies and lots of other businesses with traditionally lower wages. Minimum Salary Threshold July 1, 2020 $684.00 per week ($35,568 per year) January 1, 2021 $778.85 per week ($40,500 per year) January 1, 2022 $865.38 per week ($45,000 per year) January 1, 2023 $961.54 per week ($50,000 per year) January 1, … Each hour worked over 40 would pay an additional ½ of the “regular rate”. Erin defends employers against discrimination cases filed in a variety of forums, including state and federal court, the Illinois Department of Human Rights, the Equal Employment Opportunity Commission and the Chicago Commission on Human Relations. In the event that the employee works less than the usual 45 hours, his pay would be less than $585; if he works more than 45 hours, his pay will be more than $585. This means that the minimum salary for exempt employees in 2020 is either: $4,160.00 per month (or $49,920.00 annually) if the employee works for an employer of 25 or fewer people, or $4,506.67 per month (or $54,080.00 annually) if the employee works for an employer of more than 25 people. Bill is a partner at Franczek P.C. The minimum wage applies to most employees in Georgia, with limited exceptions including tipped employees, some student workers, and other exempt occupations.. A thorough review of the employee handbook and a consultation with the employer’s attorney is recommended before implementing any changes to pay. $58,500 annually $1,125 weekly These employees are known as "exempt" employees. Then, any hours worked over 40 would require a payment of “half-time”, since the all the straight time would have already been paid. Starting in 2023, the salary threshold will adjust (i.e., increase) automatically to an amount equal to the 10th percentile of all Pennsylvania workers who work in salaried exempt positions. The final rule takes effect on January 1, 2020 and raises the current minimum salary level for exempt employees from $455 per week, or $23,660 annually, to $684 per week, or $35,568 annually. On Tuesday, the U.S. Department of Labor issued its final rule concerning overtime exemptions. Salary Threshold for Exempt Employees (2021) Finally, the tiered salary thresholds required for exempt status are also rising effective December 31, 2020. That is up from $13.50 an hour in 2020. $684 per week ($35,568 annually)* *This is the current level required by federal law, which has been in effect since January 1, 2020. Under the rule, employers may apply a limited portion of certain nondiscretionary commissions and bonuses to meet the minimum salary level for the exemptions. Salary is only one part of the requirements for exempt status. January 1, 2021. This means that the minimum salary for exempt employees in 2020 is either: $4,160.00 per month (or $49,920.00 annually) if the employee works for an employer of 25 or fewer people, or. Minimum Wage (2021) In keeping with the gradual increase in the State's minimum wage levels, the new tiered rates across the State, effective December 31, 2020, are listed below. Salary Test for Exempt Employees . Salary threshold implementation schedule Salary thresholds for overtime exempt workers are a multiplier of state minimum wage for a 40-hour workweek 2021 Salary thresholds Small businesses: $821.40/week ($42,712.80/year) Large businesses: $958.30/week ($49,831.60/year) When the rule takes effect July 1, 2020 Jan. 1, 2021 Jan. 1, 2022 Jan. 1, 2023 Effective Jan. 1, 2020, the thresholds are: $54,080/year for employers with 26 or more employees. To be considered "exempt," employees must generally satisfy all three of the following tests: Salary-level test: Employees must earn a weekly salary that meets the minimum requirements. That translates to thousands of extra payroll dollars ($11,908 annually) for companies like retail, dry cleaners, restaurants, cleaning companies and lots of other businesses with traditionally lower wages. In order for an … This method works best with standard workweeks. Here are the highlights: 1. Committing to updating the salary threshold more regularly. Although the overtime solutions presented here are legal, they may be perceived as unfair by employees who are expecting to earn more money when the new law is passed. Minimum wage laws can affect businesses of all sizes, whether operating … Her practice focuses on counseling and representing employers on various employment and labor issues. Broadly speaking, the minimum salary level for white-collar employees in California is twice the state’s minimum wage for full-time employment (that is, 40 hours per week). The current minimum salary was $455 per week, or $23,660 annually. On January 1, 2020, California’s statewide minimum wage will increase to $13 per hour for employers with 26 or more employees and $12 per hour for employers with 25 or fewer employees. As an example, if an employee makes a current salary of $585 per week and regularly works 45 hours per week, then he has a regular rate of $13 per hour. This change does not mean that anyone making $684 per week will be exempt from overtime. $58,500 annually $1,125 weekly. Minimum Threshold 2020. In addition to New York’s minimum wage increase, the minimum salary that must be paid to workers classified as exempt under New York State Labor Law’s administrative and executive exemptions increased for 2020. part 541 with an effective date of January 1, 2020.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. As with minimum wage, the salary thresholds vary depending on the employer’s location and the number of employees. Seyfarth Synopsis: As they have each year since 2016, the minimum wage and exempt salary threshold will increase for New York employers effective December 31, 2020.. Like the minimum wage, the salary levels depend on employer size and location. Copyright ©2018 R.C. This number was based on the 20 th percentile of weekly earnings for full-time salaried workers in the lowest income census region (currently the South). However, if there is any sort of contract, whether written or implied, with the employee regarding his compensation, then the employer’s ability to change the compensation may be limited. 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Some states have a higher salary threshold than the federal law (or have no HCE exemption or no credit for bonuses/commissions against the salary level or have more narrow duties requirements). If the criteria of the New York State exception match those in the FLSA, this Department usually applies the criteria consistently with the FLSA, its regulations, and interpretations issued by the U.S. Department of Labor. No changes to the duties test have been made. The minimum annual salary is $35,568.00, or $684.00 per week. As of January 1, 2020, when the new federal rule will go into effect, the minimum … Erin is an associate at Franczek P.C. As of January 1, 2020, the minimum salary amount is $692.31 per week for exempting a worker from overtime and as of January 1, 2021 the amount increases to $700.97 per week. New York State employers, though, must be mindful that, also as of January 1, 2020, they must pay exempt employees substantially higher minimum salaries, or those employees may be eligible for overtime pay under New … The FLSA and the State Minimum Wage Act exempt employees who work in a bona fide administrative capacity from the overtime pay requirements. Non-exempt employees may be paid on a salary basis, but they are still entitled to overtime for hours over 40. The new final rule will take effect on January 1, 2020. So, if the employee worked 45 hours in a week, the overtime calculation would be: $500 divided by 45 hours= $11.11 for the regular rate. Washington state and Seattle minimum wages for non-exempt employees are set to go up on January 1, 2020. FLSA Salary Threshold Increase Effective January 1, 2020 Employers with operations outside of New York should also remember that, effective January 1, 2020, the standard salary level threshold for exempt employees under the FLSA will increase from $455 to $684 per week. $35,356 annually $684 weekly. This is only one of the factors used in determining whether a worker is exempt from overtime under federal or state law. Bill also regularly counsels employers on issues relating to the Family and Medical Leave Act (FMLA), disability and accommodations. Minimum Salary Threshold. Salary Threshold for Exempt Employees (2021) Finally, the tiered salary thresholds required for exempt status are also rising effective December 31, 2020. Employees that are classified as exempt are automatically excluded from minimum wage and overtime requirements that the FSLA provides, as well as any state … Increased Federal Salary Threshold for Exempt Employees Takes Effect on January 1, 2020 On September 24, 2019, the U.S. Department of Labor issued its final rule raising the minimum salary for exempt employees under federal law from $23,660/year (or $455/week) to $35,568/year (or $684/week), effective January 1, 2020. Small businesses (1-50 employees): An exempt employee must earn a salary of at least 1.5 times the minimum wage, or $821.40 a week ($42,712.80/year). For individuals to qualify as exempt employees, California requires that: They perform exempt duties more than 50% of their work time, and; Exempt executive, administrative, and professional employees earn a salary of no less than two times the state minimum wage for full-time employment. The new state minimum wage will be $13.69 an hour, and will take effect Jan. 1, 2021. Minimum Wage Increase. Talk to an Expert 937-470-5790. Her labor experience includes preparing and representing clients during arbitration and unfair labor practice charge hearings, while her employment practice includes counseling…. Likewise, the rule increases the salary level for the highly compensated employee exemption to $107,432. $23,660 annually $455 weekly. Under Colorado’s new regulations, the state minimum salary threshold for exempt employees will become $35,568, or $684.00 per week, effective July 1, 2020… They are as follows: Note, however, that under Maine law, the minimum salary level for exempt employees must exceed 3000 times the applicable state minimum wage—or the rate established by the U.S. DOL, whichever is higher. A second option is to calculate an hourly rate that will be equal to what the employee made previously as an exempt employee, but now including the overtime. So, exempt employees in Massachusetts will also have to be paid at the new higher salary threshold beginning January 1, 2020. Job titles do not determine exempt status. With the state salary thresholds for exempt employees now a multiplier of the state minimum wage, the thresholds will also rise on Jan. 1, 2021. For example: the minimum wage in 2020 will be $13.50, or $540 per week for a … In addition, the new minimum wage changes the 2021 thresholds … In 2021, exempt employees at smaller employers must be paid $827 per week ($43,004 annually) and $965 per week ($50,180 annually) at larger employers, consistent with the new MWA rules. 1.25 x Washington Minimum Wage ($35,100/year) ($675/week) (The new rate under the FLSA, effective January 1, 2020, is $35,568/year, or $684/week) Same as for larger employers. $780 per week ($40,560 annually) October 3, 2022. The new minimum salary is now $684 per week, or $35,568 annually. Effective January 1, 2020, however, the minimum salary level to be exempt will increase to $684 per week ($35,568 per year). This rule took effect on January 1, 2020. One solution is to re-structure the formerly exempt employee’s pay so that the new pay with overtime approximates what he was making previously without the overtime pay. Effective January 1, 2020, employers must pay employees a salary of at least $684 per week. increases the current-enforced compensation level for “highly compensated employees” (HCEs) from $100,000 to $107, 432 per year. The minimum salary requirement for 2020 for white-collar workers is $54,080 for employers with 25 or fewer employees and $49,920 for employers with 26 or more employees. Bill is a partner at Franczek P.C. The current minimum is $23,660.00, or $455.00 per week. The wage and hour team at Franczek PC created this blog to provide timely, practical insights on wage and hour law to employers. These numbers are calculated by doubling the applicable minimum wage, multiplying that … Using our $500 example, the regular rate for a 42 hour week is $11.90, but the regular rate for a 49 hour week is $10.20. The employee would be entitled to 5 hours of overtime at : ($11.11*.5) times the 5 hours = $27.78. While the 2016 rule was criticized by many business and employer groups, the new final rule is drawing fire from advocates for workers, who wish to force the administration to adopt something closer to the blocked 2016 rules. Salary Threshold for Exempt Employees (2021) Finally, the tiered salary thresholds required for exempt status are also rising effective December 31, 2020. Review your current workforce to determine which employees will be impacted by the new changes immediately, and anticipate which employees will be impacted when the escalated thresholds take effect in 2021. The New York State minimum wage rates and minimum overtime-exempt salary levels for employees working outside of New York City will increase on December 31, 2020. Franczek P.C. The employee expects fair and ethical treatment by the employer in return for his work. Specifically, exempt employees must earn a fixed monthly salary of at least double the minimum wage for full-time employment. That translates to thousands of extra payroll dollars ($11,908 annually) for companies like retail, dry cleaners, restaurants, cleaning companies and lots of other businesses with traditionally lower wages. The annual minimum compensation for “highly compensated employees” (HCEs) also increases. Need Help? 40 hours times $12.315 = $492.60 Legal challenges to the new rules are highly likely to follow. To use this method we need a bit of algebra. The Georgia minimum wage was last changed in 2008, when it was raised $0.70 from $6.55 to $7.25. 2020 California Salary Increases for Exempt Employees. $875 per week ($45,500 annually) Who Qualifies for the “White Collar” Exemptions? The new rule is set to take effect on January 1, 2020 and increase the number of overtime-eligible employees by 1.3 million. So, the regular rate may fluctuate from week to week. As of January 1, 2020, the minimum annual salary to qualify for an exempt employee would be $54,080 (Double the state minimum wage $13.00/hour for employers with 26 or more employees is $26.00/hour x 40 hours/week x 52 weeks = $54,080). The Washington State Department of Labor & Industries (L&I) has announced the state minimum wage for 2021 and calculated the new state minimum salary thresholds for overtime exempt employees. We would need to lower that hourly rate to an amount that, with 5 hours of overtime each week, would equal the current wage of $585 per week. October 3, 2021. In 2016, the DOL, under President Obama’s administration, issued a final rule increasing the salary threshold to $913 per week … The final rule takes effect on January 1, 2020 and raises the current minimum salary level for exempt employees from $455 per week or $23,660 annually, to $684 per week or $35,568 annually. This isn’t the first time in recent years that we’ve had a final rule issued increasing the salary threshold for the white-collar exemptions. Top Ten Tips Disclaimer. For 2021, the Washington minimum wage will be $13.69 per hour (an increase from the current $13.50 per hour). Seyfarth Synopsis: As they have each year since 2016, the minimum wage and exempt salary threshold will increase for New York employers effective December 31, 2020. The new thresholds will be effective December 31, 2019 and will depend on employer size and location. Large businesses (51 or more employees): An exempt employee must earn a salary of at least 1.75 times the minimum wage, or $958.30 a week ($49,831.60/year). As co-chair of the firm’s Labor and Employment Practice Group, Bill is particularly versed in all aspects of state and federal law relating to minimum wages, overtime, exemptions, and wage payment issues. $585 = 40x +5 (1.5x) All three of the above exemptions require payment of a true salary: "Salary" is defined as agreed-upon periodic compensation, intended to cover a period of at least a week, equivalent to at least $684 per week,* that is not subject to reduction on the basis of quantity or quality of work performed. The new minimum salary threshold falls between the current salary threshold and the rule proposed under the Obama administration. Oregon law also permits the payment on a fee basis without jeopardizing the salary basis of otherwise exempt employees, provided the fees are paid each pay period and are not less than the equivalent of the applicable state minimum wage. For 2020, exempt employees must be paid $684 per week ($35,568 annually), consistent with federal law. The minimum salary requirement for administrative, professional, and executive exemptions increased from $455 per week to $684 per week, or $35,568 per year on January 1, 2020. If an exempt employee’s salary drops below the minimum salary requirement, the employee may no longer be considered exempt. $585 = 47.5x This latest increase will move California one step closer to its goal of a $15 per hour minimum wage. Minimum Salary/Fee Rate (More than 50 Washington Employees) Minimum Salary/Fee Rate (50 or Fewer Washington Employees) July 1, 2020. The new state minimum wage will be $13.69 an hour, and will take effect Jan. 1, 2021. Employers may use nondiscretionary bonuses and incentive payments (including commissions) paid on an annual or more frequent basis, to satisfy up to 10 percent of the standard salary level. In 2014, Bill was named to the annual “40 Under 40” published by Law Bulletin Publishing which recognizes 40 attorneys under the age of 40 based on nominations by their clients, peers and the legal community. These solutions are allowed according to the code of federal regulations. 5 hours times $ 18.48 = $ 92.40 ($12.315 x 1.5) The federal increase in the white collar exemptions’ salary threshold has no effect on private sector employees in New York State, which uses tiered salary thresholds depending on where an employee works in the state. For employers with 25 or fewer employees, the minimum annual salary would be $49,920. 10/6/2020. The Final Rule goes into effect on January 1, 2020. Effective January 1, 2020, the federal government is raising the minimum salary requirement for exempt positions from $455 to $684. $585 = 40x + 7.5x This arrangement works well with fluctuating work week hours. The key, of course, is to make the salary arrangement in writing, in advance, with the employee. She has also defended employers before the Illinois Department of Labor and the Illinois Educational Labor Relations Board. X= $12.315. Increasing the total annual compensation threshold for highly compensated employees (“HCEs”) from $100,000 per year to $107,432 per year; Permitting employers to use nondiscretionary bonuses and incentive payments to satisfy up to 10% of the increase salary threshold; and. Her practice focuses on counseling and representing employers on various employment and labor issues. Currently, the minimum salary level under Maine law is $33,000 per year (3000 x $11), or $634.62 per week. In 2016, the DOL, under President Obama’s administration, issued a final rule increasing the salary threshold to $913 per week (or $47,476 annually). The current salary threshold is $3,466.67 a … With the state salary thresholds for exempt employees now a multiplier of the state minimum wage, the thresholds will also rise on Jan. 1, 2021. Bill provides management and employee training on workplace legal issues, and also conducts workplace investigations and legal audits. 780 per week ( $ 45,500 annually ) October 3, 2022 arrangement in writing, advance. New salary level for “ highly compensated employees ” ( HCEs ) from $ 455 $! Regular salary of at least $ 684 remain the same in 2021 salary requirement for white-collar exempt to! Issues, and Professional Exemptions $ 585 = 40x +5 ( 1.5x ) $ 585 40x! Has also defended employers before the Illinois Department of Labor and the number of employees... And a consultation with the employer ’ s location and the number of employees Texas... Same in 2021 for hours over 40 of employees with the employer ’ s location and the Illinois of... ) if the employee handbook and a consultation with the employer ’ s location the... Up on January 1, 2020, the thresholds are: $ 54,080/year for employers with 25 state minimum salary for exempt employees 2020 fewer,. $ 7.25 per hour.This is the same as the current minimum is $ 7.25 per hour.This is same... To follow to pay government is raising the minimum salary requirement for exempt positions $. May be paid at the new state minimum wage to make the salary level the. Requirement, the federal government is raising the minimum salary is only part. An additional ½ of the new thresholds will go into effect on January 1,.! A federal district court in Texas agreed state minimum salary for exempt employees 2020 blocked the rules from taking effect setting the salary for! State law in determining whether a worker is exempt from overtime divided all. Week to week set to go up on January 1, 2020 threshold is an exemption criteria that sets minimum... From $ 455 to $ 107,432 Collar ” Exemptions likely to follow for “ highly compensated employee exemption to 35,568... Salary would be $ 49,920 week divided by all hours worked that.. Would amount to $ 684 per week ( $ 35,568 annually ) Who Qualifies for the “ Collar! Salary level for the highly compensated employees ” ( HCEs ) from $ per... Paid on a salary basis, but they are still entitled to overtime for hours over 40 state ’ attorney! On counseling and representing clients during arbitration and unfair Labor practice charge hearings while! The salary threshold is an exemption criteria that sets a minimum pay threshold below employees. Is an exemption criteria that sets a minimum pay threshold below which must... Charge hearings, while her employment practice includes counseling… this rule took effect on January,. So, exempt employees must earn a fixed monthly salary of at least double the wage! New minimum salary requirement for exempt positions from $ 6.55 to $ 527.78 raising the minimum requirement! Size and location whether a worker is exempt from overtime overtime for over! Exemption criteria that sets a minimum pay threshold below which employees must earn a fixed monthly of. Depend on employer size and location employers must pay employees a salary basis state minimum salary for exempt employees 2020 but they are still entitled overtime... Hour minimum wage rate date of the requirements for exempt positions from $ 455 to $ 684 week... The federal government is raising the minimum salary threshold and the rule proposed under the administration... Is exempt from overtime Labor experience includes preparing and representing employers on employment! State law works for an employer of more than 25 people.⁠40 law to employers 23,660 annually overtime under federal state! $ 684 to know about the new state minimum wage rate the annual compensation..., in advance, with the employer ’ s attorney is recommended before any. To know about the new overtime rule regulations located at 29 C.F.R know about the new salary! Is recommended before implementing any changes to pay FMLA ), consistent with law. Is exempt from overtime arbitration and unfair Labor practice charge hearings, while employment... And Medical Leave Act ( FMLA ), consistent with federal law business decision, all factors be... Options for reducing the impact of the factors used in determining whether a worker is exempt from under! That amount plus the regular salary of at least double the minimum wage $ 107, 432 per year 7.5x... Overtime rule an additional ½ of the “ psychological contract ” between employee and employer employees ) July,..., when it was raised $ 0.70 from $ 13.50 an hour in 2020 legal challenges to duties. Part of the “ regular rate may fluctuate from week to week rule effect. And Seattle minimum wages for non-exempt employees are set to take effect on January 1, 2020 a with. Clients during arbitration and unfair Labor practice charge hearings, while her employment practice includes counseling… from a previous of! Beginning January 1, 2020 earnings for the highly compensated employees ” ( HCEs state minimum salary for exempt employees 2020 $. Annual salary is $ 35,568.00, or $ 35,568 annually must receive overtime pay issued. Rule proposed under the Obama administration blog to provide timely, practical insights on and! Salary is $ 7.25 per hour.This is the consideration of the new thresholds will go into effect on 1. Salary thresholds vary depending on the employer ’ s hourly minimum wage will $. All hours worked that week $ 455 to $ 684 per week will effective. Salary arrangement in writing, in advance, with the employer ’ s location and the Illinois of! Minimum Salary/Fee rate ( 50 or fewer Washington employees ) minimum Salary/Fee rate ( than! +5 ( 1.5x ) $ 585 = 40x +5 ( 1.5x ) $ 585 40x! Overtime pay we need a bit of algebra s hourly minimum wage rate team at Franczek PC this... ) minimum Salary/Fee rate ( more than 50 Washington employees ) July 1, 2020, employers must employees! Thresholds are: $ 54,080/year for employers with 26 or more employees week week... Federal minimum wage rate is $ 35,568.00, or $ 684.00 per week, or $ annually... Change does not mean that anyone making $ 684 course, is to make the salary level the! Minimums will take effect on January 1, 2020 and increase the number of overtime-eligible employees 1.3. From taking effect employees ) July 1, 2020, employers must pay employees a salary basis, but are! Levels depend on employer size and location any new developments as the current $ 13.50 hour. We will keep you updated on any new developments as the effective of... Wage was last changed in 2008, when it was raised $ 0.70 from $ 13.50 per hour.... His work level varies by business size hour law to employers annual salary is one... Federal regulations decision, all factors should be considered before making a final determination be exempt from overtime s is... If an exempt employee ’ s attorney is recommended before implementing any changes the!, from a previous high of $ 455 a week on for everything you need to know about new... Will go into effect on January 1, 2020 state minimum salary for exempt employees 2020 depending on the in. Georgia minimum wage for full-time employment state minimum wage be effective December 31, 2019 and will depend on size... 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A federal district court in Texas agreed and blocked the rules from taking effect pay! Go into effect on January 1, 2020 684 a week, from a previous high of 500! And ethical treatment by the employer in return for his work in 2020 a minimum threshold... = 47.5x X= $ 12.315 go up on January 1, 2021 on January 1 2021! Took effect on Jan. 1, 2021 effect Jan. 1, 2020, the thresholds are: $ for! Still entitled to overtime for hours over 40 would pay an additional ½ of the factors used in whether!

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