Please remember that this information does not constitute legal advice and should not be relied on. District of Columbia: An employee’s regular rate of pay must exceed one-and-a-half times the district minimum wage, which on July 1, 2019, will increase to $14.00 per hour. Minimum Wage for Employers With 26 or More Employees: Minimum Wage for Employers With 25 or Fewer Employees: January 1, 2020: $13.00/hour: $12.00/hour: January 2, 2021: $14.00/hour : $13.00/hour: January 1, 2022: $15.00/hour: $14.00/hour: January 1, 2023: $15.00/hour: $15.00/hour California Minimum Wage . 2 Chronologically, the increases will occur as follows: December 31, 2018: New York. Minimum wage laws can impact businesses of all sizes, whether operating nationwide, in multiple jurisdictions, or only in one state, county, or city. For employers with 25 or fewer employees, the minimum annual salary would be $49,920. The minimum wage applies to most employees in California, with limited exceptions including tipped employees, some student workers, and other exempt occupations.. For employers with 26 or more employees, the required monthly salary is $4,160 per month, and for employers with 25 or fewer employees, the required monthly salary is $3,813.33 per month. What is the minimum wage for exempt employees in San Francisco? 7 San Jose also permits certain employers to pay a “Youth Training Program” minimum wage, which requires an employer to submit an exemption application. For employees based in cities where the minimum wage is higher than the minimum wage in California, does their salary needs to be at least twice the minimum wage in that city? Earlier today (March 7, 2019), the U.S. Department of Labor announced new proposed regulations (.pdf) that would increase the minimum salary for employees to qualify for the Executive, Administrative, and Professional exemptions under the Fair Labor Standards Act to $679 per week, equivalent to $35,308 per year. The minimum salary for exempt small business employees increased to $45,760 from $43,680. (a), emphasis added.). What can I do if I prevail at the hearing and the employer doesn't pay or appeal the Order, Decision, … At the time of publication, the results are not expected to be official until November 30, 2018. These minimum salary increases went into effect on January 1, 2019. For the 2019 Calendar year, the state minimum wage is $11.00 per hour for employers with less than 26 employees, and $12.00 an hour for employers with 26 or more employees. A tip credit is not permitted for fast food employees. 11 2018 amendments to Michigan’s minimum wage gradually decrease the tip credit, and eliminate it in 2024. 28 Similar requirements exist in Indiana, Pennsylvania, North Dakota, and Wisconsin, but the minimum wage in each state is the same as the FLSA rate: $7.25 per hour. The rule increases the salary threshold for employees exempt under the executive, administrative, and professional exemptions (the “white collar exemptions”) from $455 per week (or $23,660 annually) to $684 per week (or $35,568 annually). In its final part 541 overtime rule, the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) set the salary level or amount test at $684 per week/$35,568 per year for exempt executive, administrative, and professional employees of … By S. Libby Henninger and Sebastian Chilco on, General Data Protection Regulation (GDPR), Littler Restructuring Assessment Solution, Unofficial Election Results Expected to Be Certified Nov. 30, Employers are Preparing Now to Tackle 2019's Newest Labor and Employment Laws, WPI Wage Watch: Minimum Wage and Overtime Updates (October Edition). 19 An employee must be paid on a salary or fee basis at a rate of not less than 2 times the state minimum wage for the first 40 hours of employment each week, excluding employer-furnished board or lodging. For California employers, the new federal regulations effectively supersede the California exempt employee salary threshold, which is currently $41,600. But absent some local ordinance that applies specifically to exempt employees, a local minimum wage ordinance would not affect the minimum salary requirement for exempt employees. Missouri Secretary of State, Unofficial Election Results Expected to Be Certified Nov. 30 (last visited Nov. 13, 2018). 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). Employers must ensure that that the combination of wages and tips received by an employee during a shift meets or exceeds the new standard minimum wage ($12.75 per hour). December 31, 2019: New York. Because it specifies that the relevant minimum wage is the State of California’s minimum wage—not merely the “applicable” minimum wage—the relevant minimum salary for exempt employees is calculated using the State of California’s general minimum wage law. You have a busy week and you work 100 hours. At the time of publication, the results are not expected to be official until November 30, 2018. Thank you! In California itself, though, new minimum salary exemptions came into effect with the New Year. In general, this website is an advertisement for Smith & Lo, Work Lawyers. As of January 1, 2020, California law requires nonexempt employees that work for an employer with 25 or fewer employees to be paid a minimum of $12.00 per hour.⁠5 Employees that work for an employer … 18 Although the ordinance uses “Beginning January 1, 2009, and each year therafter [sic]. 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, 2019.. It is a predetermined amount constituting all or part of the employee's compensation paid for each pay period of 1 week or longer (but not to exceed 1 month). January 1, 2019: Alaska; Arizona (incl. San Francisco Minimum Wage . While California's state minimum wage is $13.00 per hour, San Francisco has … To help manage this challenge, we are publishing a rates-only update detailing state- and local-level wage increases that are scheduled to occur throughout 2019 so employers can determine the minimum amount they must pay non-exempt, tipped, and certain exempt employees. If you require legal advice, you should contact a lawyer to advise you personally about your situation. Moreover, the ordinance provides that annual adjustments occur unless the local rate is the state rate. However, legislative efforts are underway to reinstate the tip credit, so Michigan’s inclusion on the list of states banning tip credits might be short-lived. However, it is unclear whether payment is based on the federal or state minimum wage. Private school teachers. The issue is that many employers work exempt employees well in excess of 40 hours a week. White Collar Employees Covered by Minimum Wage, California: Alameda (26 or More Employees), California: Alameda (25 or Fewer Employees), California: Emeryville (56 or More Employees), California: Emeryville (55 or Fewer Employees), No Longer Applicable –  56 or More Employee Rate Applies, California: Los Angeles (26 or More Employees), California: Los Angeles (25 or Fewer Employees), California: Los Angeles County (Unincorporated) (26 or More Employees), California: Los Angeles County (Unincorporated) (25 or Fewer Employees), California: Malibu (26 or More Employees), California: Malibu (25 or Fewer Employees), California: Oakland (Hotels – Health Benefits Provided), California: Oakland (Hotels – No Health Benefits), California: Pasadena (26 or More Employees), California: Pasadena (25 or Fewer Employees), California: Redwood City (26 or More Employees), California: Redwood City (25 or Fewer Employees), California: San Francisco (Government-Supported Employee), California: Santa Monica (26 or More Employees), California: Santa Monica (25 or Fewer Employees), Maryland: Montgomery County (51 or more employees), Maryland: Montgomery County (11-50 employees / 11 or more employees & either a 501(c)(3) or certain home health or community based services providers / 10 or fewer employees), Minnesota (Less than $500,000 annual gross sales / Certain hotels, etc. The minimum salary threshold for most overtime-exempt workers in Pennsylvania would gradually increase to $45,500 over the next three years and then be adjusted for inflation every three years after that under new regulations put forward by the Pennsylvania Department of Labor & Industry (L&I).. The change is meant to ensure that workers are not deemed exempt "while logging … If an employee’s weekly tip average is between the Low (L) and High (H) amounts, the tip credit cannot exceed the Low amount. 23 An executive or administrative employee must be paid for services a salary, including board, lodging, or other allowances and facilities. In certain places, employers may be able to count tips an employee receives toward the minimum wage. 16 Although the Portland, ME minimum wage is annually adjusted on July 1, when the state minimum wage equals or exceeds the local minimum wage, the applicable local rate is the state rate. October 22, 2019. Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney. (a).). Belmont, Cupertino, El Cerrito, Los Altos, Mountain View, Oakland, Palo Alto, Redwood City, Richmond, San Diego, San Jose, San Mateo, Santa Clara, Sunnyvale); Colorado; Delaware; Florida; Maine (incl. With regard to San Francisco specifically, it is possible that either the city or the county has special rules that apply to exempt employees, but I don’t see the word “exempt” in San Francisco’s minimum wage ordinance. 2. In Virginia, although there is not a relevant exemption from the state minimum wage, the term “employee” does not include any person whose employment is covered by the FLSA. Effective January 1, 2019, the computer software employee minimum hourly rate will increase from $43.58 to $45.41 per hour, the minimum monthly salary … Executive, Administrative, or Professional Exemption Minimum Pay Increases. Exempt employees are paid a salary that equals at least twice the applicable state minimum wage for full-time employees. But, if the direct wage plus tips does not equal the minimum wage, an employer must pay the employee the difference. Code, Ch. 3 This is based on the unofficial results for a November 6, 2018 ballot measure. $38.89 or annual salary of not less than $81,026.25 for … The statewide rate is $12.00 for companies with 26 or more employees. Tipped employee standards can be more complicated in New York, so we have given the Empire State its own section. Colorado Proposes Increasing Minimum Salary of Overtime-Exempt Workers to $57,500. Generally: If an employee’s weekly tip average is less than the Low amount, a tip credit cannot be claimed. Salary level is one of three tests used to determine employee exempt … Let us say the employer pays you a weekly salary of $950 per week. For licensed physicians and surgeons, the minimum hourly rate of pay will increase from $79.39 to $82.72. If the state minimum wage, the wage rate will increase on December 31, 2018 (“2018”), and on December 31, 2019 (“2019”). For employees based in cities where the minimum wage is higher than the minimum wage in California, does their salary needs to be at least twice the minimum wage in that city? Local minimum-wage ordinances do not affect the exempt salary threshold. (See S.F. Moreover, the ordinance provides that annual adjustments occur unless the local rate is the state rate. A salary is no less than the state minimum wage multiplied by 2,080 hours per year then divided by 12 months. This website and its content are not intended to be relied on as legal advice, and should not be relied on as such. This increase is based on Section 12R.4 of the San Francisco Administrative Code. Effective January 1, 2019, the computer software employee minimum hourly rate will increase from $43.58 to $45.41 per hour, the minimum monthly salary amount will increase from $7,565.85 to $7,883.62, and the minimum annual salary amount will increase from $90,790.07 to $94,603.25. So my assumption would be that the minimum salary for exempt employees is the same in San Francisco as it is in the rest of California. Washington: An employee’s regular rate of pay must exceed one-and-a-half times the state minimum wage, which on January 1, 2019, will increase to $12.00 per hour. 25 Most tests for determining whether an employee is exempt contain a duties component and a pay component. If our answer was helpful, you already know you can trust us. 22 An employee’s regular compensation, when converted to an annual rate, must exceed 3,000 times the state minimum wage or the annualized FLSA rate set by the U.S. Labor Department, whichever is higher. Or is it twice the minimum wage in California: $11 x 2 x 40 x 52 = $45,760? 12R [the minimum wage ordinance].) Colorado21 (Executive or Supervisor) (Based on 40, 50, or 60 Hours Per Week), New York23 City (11 or More Employees) (Executive or Administrative), New York City (10 or Fewer Employees) (Executive or Administrative), Nassau, Suffolk & Westchester Counties (Executive or Administrative), Remainder of New York State (Executive or Administrative). The minimum compensation for the overtime exemption for highly-skilled computer professionals increased as well on January 1, 2019. MCO Non-Profit Rate: Effective December 8, 2020, the MCO Non-Profit rate is $17.05 per hour. Food Service Worker: A food service worker must receive a wage of at least the hourly Cash Wage (CW), and a tip credit cannot exceed the below-specified hourly rate (TC) provided the total of tips received plus the wages equals or exceeds the hourly total minimum wage rate (MW). MCO Public Entities Rate: Effective September 1, 2020, The MCO Public Entity Rates is $17.25 per hour. 5 On or before February 18, 2019, the City Manager must present a report to the City Council about the law’s impact. However, as noted in October’s Wage Watch article, there is a possibility a voter referendum could be held on the Council’s action, which, if successful, would undo the Council’s undoing of Initiative 77. Kyle D. Smith and Justin Lo are responsible for all communications made on this website. If approved, the city would determine the applicable rate. UPDATE: Since we originally published this article, the rates for Portland, ME have been updated to address the impact of upcoming state-level rate changes. The exempt salary test is based on the California minimum wage, which means that it increases every year on January 1 as the state minimum wage increases. However, it is anticipated that the D.C. Council will pass a new emergency measure that would maintain the status quo until the Tipped Wage Workers Fairness Amendment Act of 2018 could become officially enacted and repeal Initiative 77, which was approved by voters at the June 19, 2018 election. Exempt employees are paid a salary that equals at least twice the applicable state minimum wage for full-time employees. In these jurisdictions, such employees must earn at least the applicable minimum wage for each hour worked. As employers wait to see whether – and to what extent – the U.S. Department of Labor will revise the minimum amount they must pay to executive, administrative, and professional employees for these workers to be exempt from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime requirements, state-law rates for these employees are scheduled to increase in 2019 (and on New Year’s Eve in New York). In New Hampshire, such employees must be paid the federal minimum wage. Portland, ME Code § 33.7(b)(iii)-(iv). You are entitled to be paid the higher state minimum wage. As soon thereafter as practical, the City Manager must request direction from the Council to amend the law to increase the minimum wage as follows: $14.25 (July 1, 2019); $15.00 (July 1, 2020); Beginning July 1, 2022, and each July 1 after, the minimum wage must be adjusted according to a change in the consumer price index. Though the first increase is scheduled to occur on January 1, 2019, the official date will not be known until the election results are certified, so it is technically possible the first increase could occur slightly after January 1. 8 Although the Portland, ME minimum wage is annually adjusted on July 1, when the state minimum wage equals or exceeds the local minimum wage, the applicable local rate is the state rate. The $455 a week amount may be translated into equivalent amounts for periods longer than one week: $910 (Bi-weekly); $985.83 (Semi-monthly); $1,971.66 (Monthly); $23,660 (Annual). 10 Although the ordinance uses “Beginning January 1, 2009, and each year therafter [sic]. Employers in cities without a specific minimum wage are subject to California’s minimum wage ($11/$12). Author: Michael Cardman, XpertHR Legal Editor November 20, 2019. If an employee’s weekly tip average equals or exceeds the High amount, the tip credit cannot exceed the High amount. The rates are noted in the Minimum Wage Increases & Tipped Rate Increases section of this article. The minimum salary requirement for exempt employees according to the Fair Labor Standards Act is $23,600 per year or $455 per week.However, the exempt salary minimum alone does not classify an employee as exempt. Salary must be predetermined and guaranteed. 13 This is based on the “Tipped Wage Workers Fairness Amendment Act of 2018” becoming officially enacted. The Labor Code states that the minimum salary for exempt employees in California is: [A] monthly salary equivalent to no less than two times the state minimum wage for full-time employment. Home: Smith & Lo, California Work Lawyers, About Smith & Lo, California Work Lawyers, Answers: Smith & Lo, California Work Lawyers, Contact Smith & Lo, California Work Lawyers, Icon for Exemption Misclassification Category. Richmond, CA Code § 7.108.040. 14 Beginning on July 1, 2017, and on every July 1 thereafter, qualified tipped employees must be paid the greater of: (A) the FLSA minimum cash wage; (B) the state minimum cash wage; or (C) the city's minimum cash wage from the previous year, increased in proportion to the increase, if any, in the CPI. Although the minimum pay requirements are not currently scheduled to increase in 2019 in Connecticut or Iowa, under both states’ “short test”25 an employee must be compensated on a salary or fee basis – excluding boarding, lodging, or other facilities – in excess of the federal rate: $475 per week in Connecticut, and $500 per week in Iowa. Get more information, including specific rates. See Santa Fe, NM Code § 28-1.5(B). 17 This is based on the unofficial results for a November 6, 2018 ballot measure. Under the FLSA, to be considered a bona fide executive, administrative, or professional employee, an individual must be compensated on a salary or fee basis (only for administrative and professional employees) at a rate of not less than $455 per week, excluding board, lodging, or other facilities. Notice: This domain, its subdomains, and its pages (collectively, this "website"), are the property and creation of Kyle D. Smith and Justin Lo, who operate together as Smith & Lo, Work Lawyers. (Labor Code, § 515, subd. 4 This is based on the unofficial results for a November 6, 2018 ballot measure. This means that the minimum salary for exempt employees in San Francisco during 2018 is probably either: I hope this information helps. Service Employee: An employer must directly pay a service employee at least the hourly Cash Wage (CW), and cannot claim a tip credit that exceeds the hourly Tip Credit rate (TC). Therefore, on January 1, 2019, in order to qualify for a white collar exemption, the employee must receive an annual salary of at least $49,920 for large employers and $45,760 for small employers. The minimum annual salary for many overtime-exempt employees in Colorado would increase to $57,500 under new regulations proposed by the state labor department.. 12 This is based on the unofficial results for a November 6, 2018 ballot measure. Portland); Massachusetts; Minnesota; Missouri; Montana; New Jersey; Albuquerque, Bernalillo County (Unincorporated) and Las Cruces, NM; Ohio; Rhode Island; South Dakota; Vermont; Washington (incl. For tipped employees, meaning those who customarily receive more than $20.00 in tips each month, the service rate will increase from $4.35 to $4.95 per hour. Oregon: An employee’s regular rate of pay must exceed one-and-a-half times the state minimum wage, which on July 1, 2019, will increase to $12.50 per hour (urban), $11.25 per hour (general), and $11.00 per hour (non-urban). Likewise, in 2018 D.C. voters approved gradually reducing, then eliminating, the tip credit, but, as noted earlier, the Council of the District of Columbia has taken steps to roll back these changes. SeaTac, Seattle, Tacoma). Minimum Wage: Subject to a few exceptions, all California hourly employees must earn at least the state minimum wage. 27 Nevada’s minimum wage rate – $8.25 or $7.25 depending on whether health benefits are offered – may increase in July 2019, but an announcement will not occur until later in 2019. The exempt salary threshold increases for January 1st 2019 are as follows: Employers with 26 or more employees: $960 weekly, $4,160 monthly, or $49,920 yearly Employers with 25 or fewer employees: $880 weekly, $3,813.33 monthly, or $45,760 yearly. Computer Professional Exempt Salary Rate . Additional states in which such employees are entitled to be paid the minimum wage include: Georgia; Illinois (where local rates are increasing in Chicago and Cook County); Massachusetts; North Dakota; Utah; and Wisconsin. That employee should be paid $19.88 for that hour of work, not $19.87. On September 24, 2019, the Department of Labor (DOL) released the final version of a new rule (the Final Rule) concerning the minimum salary level for most employees covered by the “white collar exemptions” under the Fair Labor Standards Act (FLSA).. If you choose to provide us with your email, you agree to recieve written "solicitations" within the meaning of Rule 1-400 or other marketing materials from our firm. The minimum exempt salary has been increased from $23,660 per year ($455 a week) to $35,568 per year ($684 per week). Chicago, IL Code § 1-24-020. New York: The general wage order29 provides – in part – that employers must pay an employee for overtime at a wage rate of one-and-one-half times the employee's regular rate in the manner and methods provided in and subject to the exemptions of section 7 of the FLSA. Connecticut has a state minimum wage that exceeds the FLSA rate – $10.10 per hour – and, in its 7(i)-type exception, pay – in part – is pegged to the state minimum wage (regular rate of pay exceeds two times that rate), but it does not currently have a 2019 minimum wage increase scheduled. Employers must give careful attention to the applicable wage order to ensure they take the appropriate credit/allowance. 24 An employee must earn a salary and be paid on a salary basis, excluding board, lodging, or other facilities. Missouri Secretary of State, Unofficial Election Results Expected to Be Certified Nov. 30 (last visited Nov. 13, 2018). .” the City of Santa Fe has routinely adjusted its rate on March 1. This comes out to only $9.50/hr, which is less than California's minimum wage. Communications '' within the meaning of Rule 1-400 of the minimum san francisco minimum salary for exempt employees 2019 each! A weekly salary of $ 950 per week on January 1, 2019 employee toward! 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