L&I Fact Sheet: Proposed changes to Washington overtime rules

L&I Fact Sheet: Proposed changes to Washington overtime rules https://wahospitality.org/wp-content/uploads/2019/06/shutterstock_1381473122.jpg

This information provided here is from the fact sheet titled, “Proposed Changes to Washington’s Overtime Rules.” To see the original Fact sheet from the Department of Labor & Industries, click here.

The Department of Labor & Industries (L&I) is changing the employment rules that determine which workers in Washington are required by law to be paid at least minimum wage, earn overtime pay, and receive paid sick leave. These changes will affect executive, administrative, and professional (EAP) workers and outside salespeople across all industries in Washington.

Changes to these rules mean some employers will have to provide minimum wage, overtime, and paid sick leave to some employees who were previously considered exempt. In other cases, employers may choose to increase salaries for exempt employees.

Who are these workers?
A combination of a minimum salary and specific job duties determines whether a worker meets the definition of an executive, administrative, or professional worker, or outside salesperson contained in state rules. These workers are typically “white collar” workers who often have more economic security and relative bargaining power than lower-wage workers. In general, these workers must be salaried and paid a minimum specified salary level, and must primarily perform executive, administrative, professional, or outside sales duties as defined by federal regulations.

Proposed changes update minimum salary level and job duties
Under the proposed changes, the minimum pay a salaried worker must receive to be considered exempt would increase incrementally to 2.5 times
minimum wage by 2026. For many employers, the first increase would take effect July 1, 2020, when the minimum required salary level for exempt employees would increase from the current $455 a week (under federal rules) to $675 a week for small employers, and $945 a week for large employers (with more than 50 employees). This salary level is based on Washington’s 2020 minimum wage requirement. See the salary chart for a full schedule of when the
proposed changes would take effect. In addition to the change in the minimum salary level, the job duties tests in the proposed rules are being updated to more closely align with the federal job duties tests.

 

Read more