Reminder: New Federal Overtime Rule Effective December 1

Minimum Wage and Overtime Pay Exemption Salary Thresholds Raised for Many Employees

Effective December 1, a new rule updates the regulations governing which executive, administrative, professional, and highly compensated employees are entitled to the minimum wage and overtime pay protections of the federal Fair Labor Standards Act (FLSA).

Current Rules
The current federal rules provide an exemption from both the minimum wage and overtime pay requirements of the FLSA for bona fide executive, administrative, and professional employees who meet certain tests regarding their job duties and who are paid on a salary basis at not less than $455 per week ($23,660 per year). “Highly compensated employees” (HCEs) who are paid total annual compensation of $100,000 or more and meet certain other conditions are also deemed exempt.

New Rule
The new rule updates the salary and compensation levels needed for executive, administrative, professional, and highly compensated employees to be exempt. In particular, the final rule:

  • Raises the salary threshold from $455 a week to $913 per week (or $47,476 annually) for a full-year worker;
  • Increases the HCE total annual compensation level to $134,004 annually;
  • Amends the regulations to allow employers to use nondiscretionary bonuses, incentives, and commissions to satisfy up to 10% of the new standard salary level, so long as employers pay those amounts on a quarterly or more frequent basis; and
  • Establishes a mechanism for automatically updating the salary and compensation levels every 3 years, beginning on January 1, 2020.

Note: When both the FLSA and a state law apply, the employee is entitled to the most favorable provisions of each law.

ORIGINALLY POSTED BY HR360.COM

Washington Voters Approve Minimum Wage Increases and Paid Sick Leave

Minimum Wage Increases Begin January 1, 2017

Voters in Washington State have approved a ballot initiative that raises the state minimum wage and requires paid sick leave.

Minimum Wage
Under the initiative, the minimum wage will rise as follows:

  • Beginning January 1, 2017: $11.00 per hour.
  • Beginning January 1, 2018: $11.50 per hour.
  • Beginning January 1, 2019: $12.00 per hour.
  • Beginning January 1, 2020: $13.50 per hour.
  • Beginning January 1, 2021 (and each following January 1st), the minimum wage will be adjusted for inflation.

Note: An employer must pay to its employees all tips and gratuities and all service charges (except those that are itemized as not being payable to the employee(s) servicing the customer). Tips and service charges paid to an employee are in addition to (and may not count towards) the employee’s hourly minimum wage.

Paid Sick Leave
Beginning January 1, 2018, every employer must provide each of its employees paid sick leave (at the greater of the newly increased minimum wage or the employee’s normal wage). Highlights of the law are presented below:

  • An employee will accrue at least one hour of paid sick leave for every 40 hours worked.
  • An employer may provide paid sick leave in advance of accrual, provided that such front-loading meets or exceeds the requirements of the law for accrual, use, and carryover of paid sick leave.
  • An employee is authorized to use paid sick leave for (among other things) an absence resulting from the employee’s mental or physical illness, injury, or health condition, or to allow the employee to provide care for a family member with a mental or physical illness, injury, or health condition.
  • Unused paid sick leave carries over to the following year, except that an employer is not required to allow an employee to carry over paid sick leave in excess of 40 hours.
  • The initiative generally does not require an employer to provide financial or other reimbursement for accrued and unused paid sick leave to any employee upon his or her termination, resignation, retirement, or other separation from employment.

Click here to read the initiative.

ORIGINALLY POSTED BY HR360.COM

California Raises Minimum Wage to $15 Per Hour Over Next Several Years

 

Increases Begin January 1, 2017 for Certain Employers

Under a new law, the California minimum wage is scheduled to rise as follows:

  • For employers with 26 or more employees, the minimum wage will be:
    • From January 1, 2017 to December 31, 2017: $10.50 per hour.
    • From January 1, 2018 to December 31, 2018: $11 per hour.
    • From January 1, 2019 to December 31, 2019: $12 per hour.
    • From January 1, 2020 to December 31, 2020: $13 per hour.
    • From January 1, 2021 to December 31, 2021: $14 per hour.
    • From January 1, 2022 until adjusted for inflation: $15 per hour.
  • For employers with 25 or fewer employees, the minimum wage will be:
    • From January 1, 2018 to December 31, 2018: $10.50 per hour.
    • From January 1, 2019 to December 31, 2019: $11 per hour.
    • From January 1, 2020 to December 31, 2020: $12 per hour.
    • From January 1, 2021 to December 31, 2021: $13 per hour.
    • From January 1, 2022 to December 31, 2022: $14 per hour.
    • From January 1, 2023 until adjusted for inflation: $15 per hour.

Click here to read the text of the law.

ORIGINALLY POSTED BY http://www.hr360.com

California’s Minimum Wage Increases to $10 per Hour

CA Minimum WageOakland—The Department of Industrial Relations (DIR) reminds California’s employers and workers that effective January 1, 2016, the state’s minimum wage will increase to $10 per hour.

“This increase in the minimum wage is California’s second increase in 18 months. Those earning minimum wage will now have a bit more to take home every paycheck,” said Labor Commissioner Julie Su. The Labor Commissioner’s Office is a division of DIR.

Governor Jerry Brown signed legislation on September 25, 2013, raising California’s minimum wage to $9 per hour on July 1, 2014, with a final adjustment to $10 per hour on January 1, 2016. It marked the first increase in California’s hourly minimum since 2008, when the minimum wage was raised 50 cents to $8.

State law requires employers to post information on wages, hours and working conditions at a worksite area accessible to employees. Notices for the wage orders in English and Spanish can be downloaded and printed from the Workplace postings page on the DIR website.

Almost all employees in California must be paid the minimum wage as required by state law. Workers who are paid less than the minimum wage may file a wage claim with the Labor Commissioner’s office.

DIR protects and improves the health, safety and economic well-being of over 18 million wage earners, and helps their employers comply with state labor laws.

DIR’s Division of Labor Standards Enforcement (DLSE), also known as the Labor Commissioner’s Office, enforces prevailing wage rates and apprenticeship standards in public works projects, inspects workplaces for wage and hour violations, adjudicates wage claims, investigates retaliation complaints, issues licenses and registrations for businesses and educates the public on labor laws.

Employees with work-related questions or complaints may contact DIR’s Call Center in English or Spanish at 844-LABOR-DIR (844-522-6734). The California Workers’ Information line at 866-924-9757 provides recorded information in English and Spanish on a variety of work-related topics.