L&I proposes updated overtime threshold of 2.5 times the minimum wage by 2026 for Executive, Administrative, Professional staff

L&I proposes updated overtime threshold of 2.5 times the minimum wage by 2026 for Executive, Administrative, Professional staff https://wahospitality.org/wp-content/uploads/2019/06/shutterstock_788922211.jpg

OLYMPIA, Wash. – The state Department of Labor and Industries today announced the filing of a rulemaking notice (CR-102) that would update the state’s salary overtime threshold for executive, administrative and professional (EAP) employees over the course of six years to 2.5 times the statewide minimum wage beginning in 2020. The projected salary overtime threshold for small and large businesses in 2026 would be $79,872 and adjusted annually for inflation thereafter.

“We agree that the overtime threshold needs to be updated,” said Anthony Anton, president and CEO of the Washington Hospitality Association. “We appreciate the phase-in period and the alignment with the federal government for the first year of the implementation in 2020.”

The Washington Hospitality Association and its members are actively engaged in the discussions surrounding the updates to the EAP rules. The hospitality industry is unique in that it offers all levels of jobs, from entry-level to senior management and ownership. With a proposed salary threshold of $79,872 by 2026, many of the critical middle management positions in the industry would likely revert to hourly as employers examine the implementation of this new rule for their businesses.

“We are concerned about what this overtime rule could do for hospitality employees seeking to break into management,” Anton said. “We will be talking with our employees and members to make sure solutions can be found.”

The Department of Labor & Industries classifies a small business as one that employs 1 to 50 people, and a large business is determined as one that employs 51 or more people. The department will likely have technical guidance in the future telling operators of how employees are counted.

“We are a solutions-driven industry and will continue to be actively engaged in the overtime discussions as we seek member feedback to the proposed rule,” Anton said.

The Department of Labor & Industries will be accepting public comments on the proposal until 5 p.m. on September 6, 2019. Additionally, the Department will be holding public hearings across the state in July and August.

With the open public comment period, the association encourages members to give their feedback to the Department of Labor & Industries on the proposed update to the salary overtime threshold. More information about the overtime rules update may be found on L&I’s Overtime Rulemaking website.

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For more information about the proposed overtime salary threshold phase-in, click here.

For the Fact Sheet and to view the phase-in schedule, click here.

About the Washington’s Hospitality Association

Hospitality is the industry that serves. The Washington Hospitality Association delivers wins for the largest group of private employers in the state. The nearly 300,000 jobs the industry provides are the backbone of our state’s economy. The association works at the state and local levels to find proactive solutions to the challenging issues facing the industry and its workforce. It supplies its members with programs, services and information they need to deliver great local experiences, ensure the success of their employees and help their communities thrive. The Washington Hospitality Association became one of the state’s largest trade associations in 2016 when the Washington Restaurant Association and Washington Lodging Association joined forces in a combined association. 

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