minimum salary for exempt employees 2021

Under some state laws, these employees are exempt only from overtime requirements, meaning employers must pay them at least the state minimum wage for all hours worked, and many of these state minimum wage rates will increase in 2021. All other marks are the property of their respective owners. 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). As the state minimum wage for employers with 26 or more employees will be $14.00 per hour, such employers will be unable to claim the full local credit without violating state law. Less than one month before voters went to the polls, the Florida Department of Economic Opportunity announced an annual CPI adjustment to take effect on January 1, 2021 ($8.65 per hour), as it was required to do under the state constitution before the amendments. In 2021, the Colorado minimum wage will be $12.32 per hour. 6. Using the 2021 minimum wage, L&I has calculated the salary thresholds taking effect Jan. 1, 2021: 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). The ADP logo, ADP, RUN Powered by ADP, and HR{preneur} are registered trademarks of ADP, Inc. and its affiliates. Currently, these three jurisdictions’ ordinances require an annual adjustment to their local minimum wage based on CPI changes. However, this article only addresses the salary or fee amount and does not address whether or how employers may use other compensation sources to satisfy exempt employee pay requirements. Additionally, on May 1, the Virginia minimum wage will increase to $9.50 per hour, and on July 1, the Nevada minimum wage will increase to $9.75 or $8.75 per hour, depending on whether an employer offers health benefits. This rule took effect on … In some states, the minimum salary requirement for overtime exemption increases automatically whenever the minimum wage increases. People that work for an employer with more than 25 employees are entitled to be paid a minimum wage of at least $13.00 per hour.⁠ 15. That is up from $13.50 an hour in 2020. Additionally, in a handful of states, outside sales employees are not exempt from state minimum wage requirements. To be classified as exempt from New York's overtime requirements, executive and administrative employees must meet minimum salary requirements and satisfy certain duties tests. In both jurisdictions, employers may pay employees $1 per hour less than the general minimum wage if they provide a certain level of health and/or childcare benefits. If an employee is covered by both federal and state law but doesn't meet both sets of tests, employers should consult with counsel to determine how they should classify the employee in that particular situation. Salary Thresholds for Overtime Exempt Employees to Rise Jan. 1, 2021 Increase in state’s minimum wage rate to $13.69 an hour triggered recalculation As a result of the state’s minimum-wage rate rising to $13.69 an hour on Jan. 1, 2021, a new minimum salary threshold for overtime-exempt employees will also increase. To help manage this challenge, below we provide a rates-only update that details scheduled state- and local-level wage increases throughout 2021 so employers can determine the minimum amount they must pay non-exempt, tipped, and certain exempt employees. The FLSA allows for exemptions from these overtime and minimum wage requirements for certain employees who work in administrative, professional, and executive jobs (known as "exempt" employees). Note that in Arizona, local minimum wage rates may apply (see above). 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. They will remain $15.00 (minimum wage), $2.50 (maximum tip credit), $12.50 (minimum cash wage), $3.25 (tip threshold), $8.40 (tip threshold resort hotel). However, it is unclear whether employers must base payment on the federal or state minimum wage. Effective January 1, 2021, the rule increases the minimum salary required for the executive, administrative, and professional exemptions under state law as follows: Earlier this year, Pennsylvania adopted a new rule that increases the minimum salary required for the states' executive, administrative, and professional exemptions to $780 per week, effective October 3, 2021. New York: The general wage order45 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. Among other things, COMPS Order #36 expands the industries covered by the order as well as increases the minimum salary required to be considered exempt under state law. In Albuquerque and Las Cruces, employers must pay tipped employees a minimum cash wage (MCW) that is no less than 60% or 40% of the applicable minimum wage, respectively. 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). Additionally, the ballot measure changes the minimum cash wage for tipped employees standard from half the state minimum to half the local minimum wage. Employers seeking to classify employees as exempt from overtime should ensure employees meet both federal and state exemption criteria. Seyfarth Synopsis: On January 1, 2021, Washington's minimum wage will increase and will trigger the first in a series of increased salary thresholds for exempt employees, which will continue through 2028. Before we chart out the 2021 rates, however, we briefly highlight rate changes that occurred in fall 2020, November 2020 ballot measures, and a unique 2021 issue in New Mexico. For the administrative, professional, and executive exemptions under state law, employers with 26 or more employees must pay a salary of at least $1,120 per week beginning January 1, 2021. In certain places, employers may be able to count tips an employee receives toward the minimum wage. ), Malibu, Milpitas, Oakland (Hotel), Pasadena, San Francisco, and Santa Monica, CA, D.C., Chicago & Cook County, IL, Portland, ME, Montgomery County, MD, Minneapolis and Saint Paul, MN (101-10,000, ≤100, ≤5 employees), Nevada, New York (Fast Food Worker Outside New York City), and Oregon. August 1, 2021: Connecticut. September 30, 2021: Florida. A city or county enacts a law to set a minimum wage rate that exceeds that set by federal and state law. As a result of the change in the minimum wage for 2021, the minimum salary required for the states' administrative, professional, and executive exemptions will increase to $827.20 per week (or two times the minimum wage for a 40-hour week) on January 1, 2021. Next, we highlight state, counties, and cities where, for tipped employees, the minimum cash wage and/or tip credit will increase in 2021. Salary Threshold for Exempt Employees (2021) Finally, the tiered salary thresholds required for exempt status are also rising effective December 31, 2020. When making their annual adjustment announcements, the cities based their MCW on the state minimum wage, rather than what the adjusted local minimum wage would be. Additionally, information concerning Albuquerque, Bernalillo County, and Las Cruces, New Mexico is not included in the below chart. An employer may reduce the regular workweek of an exempt employee, for example, from 40 hours to 32 hours, with a commensurate reduction in pay, provided the … Essentially, local minimum wage ordinances are a response to low or unchanging federal or state minimum wage rates. 32 Up to 10% of the federal salary amount may be satisfied via nondiscretionary bonuses, incentives and commissions that employers pay annually or more frequently. That said, the regulations do not prohibit prospective changes to exempt employees’ salaries (provided they still receive the minimum required salary). Moreover, all adjusted rates take effect on January 1. Note, however, that under Maine law, the minimum salary level for exempt employees must exceed 3000 times the applicable state minimum … Or. 30 This includes any rate that would be in effect before the scheduled increase in 2021. 27 The maximum tip credit temporarily decreases because the local minimum wage rate will not change on January 1, 2021, but the state minimum cash wage, which applies to employers covered by state and local law, will increase on January 1, 2021. Minimum wage laws can affect businesses of all sizes, whether operating nationwide, in multiple jurisdictions, or only in one state, county, or city. ©2020 ADP, Inc. All Rights Reserved. In Rockland, Maine, voters approved a new minimum wage ordinance that will become operative on January 1, 2022, at which time covered employees must receive a $13.00 citywide minimum wage. For tipped employees, the ordinance allows employers to apply a tip credit of up to half the applicable minimum wage. Most provisions become effective March 16, 2020, with the exception of the increased salary … 20 In Seattle, "hourly minimum compensation" represents the minimum wage plus tips actually received by an employee and reported to the IRS, and money paid by the employer towards an individual employee's medical benefits plan. In these jurisdictions, such employees must earn at least the applicable minimum wage for each hour worked in a workweek. 3 This includes any rate that would be in effect before the scheduled increase in 2021. Effective January 1, 2020, the federal government is raising the minimum salary requirement for exempt positions from $455 to $684. In these jurisdictions, if the direct wage and tips an employer pays an employee equals the minimum wage, an employer satisfies its minimum wage obligation. Stat. Chronologically, the increases will occur as follows: November 1, 2020: New Jersey (Long-Term Care Facility Direct Care Staff); December 31, 2020: New York (Nassau, Suffolk & Westchester Counties; Remainder of State; Fast Food Worker Outside New York City). January 1, 2021: Alaska, Arizona (incl. Washington: An employee’s regular rate of pay must exceed one-and-a-half times the state minimum wage, which on January 1, 2021, will increase to $13.69 per hour. Accordingly, for the time being, unless the Department revises its mandatory poster to state otherwise, it appears the pre-ballot measure increase will be in effect from January 1 through September 29, 2021, followed by ballot measure amendments on September 30, 2021. The U.S. Department of Labor recently released a proposed rule increasing the long-standing amount, as one of the requirements for “exempt” employees under the Fair Labor Standards Act. As per the Wage Order, the minimum salary level for the executive exemption and the administrative exemption governing employers in New York State, but outside of New York City and outside of Nassau, Suffolk and Westchester Counties, will rise to: January 1, 2025: The 2024 salary adjusted for infl… Directly below we highlight the minimum cash wage (MCW) that may be paid, and the maximum tip credit (TC) employers can claim, for covered tipped employees, as well as the amount of the increase. So, when the minimum wage goes up statewide, so does the exempt salary threshold. 24 Although a lower minimum wage rate applies for employees of small or seasonal employers, the state labor department contends that the general minimum wage rate applies to a covered tipped employee thereof. ), Las Cruces), Ohio, South Dakota, Vermont, Washington (incl. The increase in 2021 is significant. 19 The “Urban” rate applies to employer located within the urban growth boundary of a metropolitan service district organized under state law (i.e., Portland area). 42 Other states that require employers to pay these employers the minimum wage, but which will not experience a minimum wage increase in 2021, include: Georgia ($5.15); New Hampshire ($7.25); North Dakota ($7.25); Rhode Island ($11.50); Utah ($7.25); and Wisconsin ($7.25). 28 Under the Hospitality Wage Order, the service employee rates applicable in New York City will not change on December 31, 2020. The current minimum salary was $455 per week, or $23,660 annually. Employers with fewer than 26 employees must pay a minimum salary of at least $1,040 in 2021. SeaTac & Seattle). March 1, 2021: Santa Fe and Santa Fe County (Unincorporated), NM. May 1, 2021: Virginia. July 1, 2021: Berkeley, Emeryville, Fremont, Long Beach (Hotel), Los Angeles, Los Angeles County (Unincorp. However, an employer’s ability to claim the tip credit is dependent on an employee’s weekly tip average equaling at least the hourly Tip Threshold (TT) (or TT(R) for resort hotel service employees) and an employee’s direct wage plus tips equaling or exceeding the minimum wage. Note that the some – but not all34 – New York rates will also increase on December 31, 2021, but for this article we focus on the New York rates that will apply every day in 2021 except December 31, 2021. The minimum federal salary threshold for white-collar employees may soon increase from $23,660 to $35,308. The state's minimum wage is scheduled to increase on January 1, 2021 and varies based on size of the employer. Note, however, that the legislative history suggests the general minimum wage rate only applies to tipped employees of seasonal employers. Various states' minimum salary or fee amounts exceed the federal rate, and in 2021, these pay requirements will change. 4 The minimum wage for employers with 26 or more employees remains $15.00 per hour. This is only one of the factors used in determining whether a worker is exempt from overtime under federal or state law. Employers with operations subject to this rate should monitor the following city webpage: https://www.oaklandca.gov/topics/measure-ff-and-measure-z. 1 For more information, see Natalie Storch and Kimberly Doud, Florida Passes Amendment 2, Gradually Increasing Florida’s Minimum Wage to $15 an Hour, Littler ASAP (Nov. 9, 2020). Nevertheless, for the purpose of this article, the rates above use those the state labor department contend apply. In these jurisdictions, such employees must earn at least the applicable minimum wage for each hour worked in a workweek. 33 Until the FLSA rate increased in 2020, Connecticut, Iowa, and Oregon may have had greater rates. On January 1, 2021, the minimum salary required to qualify for the executive/supervisor, administrative, and professional exemptions under state law increases to $778.85 per week. Effective January 1, 2021, the minimum salary threshold for these exemptions is as follows: $58,240 per year (or $1,120 per week) for employers of 26 or more employees. January 1, 2023: $50,000 per year ($961.54 per week) 5. However, after that announcement, the city held further meetings with legal staff, so employers should monitor this development in case the city’s position changes. Please note that some – but not all – New York rates may also increase on December 31, 2021, but for this article we focus on the New York rates that will apply every day in 2021 except December 31, 2021. The salary thresholds are now based on a multiplier of the minimum wage. The 2021 thresholds for computer professionals who are paid by … 43 Other states that require employers to pay these employers the minimum wage, but which will not experience a minimum wage increase in 2021, include: Georgia ($5.15); Nebraska ($9.00); and North Dakota ($7.25). Preset increases to the minimum wage will occur on January 1 in 2023 ($14.00) and 2024 ($15.00). ), New Jersey (Long-Term Care Facility Direct Care Staff), New York (Nassau, Suffolk & Westchester Counties). In various states, executive, administrative, or professional employees are exempt from state overtime requirements, but not exempt from state minimum wage requirements. Employers may want to consult legal counsel about how this rule may impact them. ADP does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog. Using the 2021 minimum wage, L&I has calculated the salary thresholds taking effect Jan. 1, 2021: 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). Before classifying and treating any employee as exempt from overtime, employers should confirm that the employee satisfies all applicable tests for overtime exemption under federal and state laws. 12 The minimum wage for employers with 26 or more employees remains $15.00 per hour. In the following states with 2020 rate changes, the 7(i)-type exemption requires – in part – an employee’s pay to either equal or exceed one-and-a-half times the state minimum wage.44. L&I changed the minimum amount these exempt employees must earn when updates to the state overtime rules took effect July 1. For the professional exemption, employees must satisfy certain duties tests, but there is no minimum salary requirement under state law. Like the minimum wage, the salary levels … Below we discuss these pay-related 2021 changes. 21 This includes any rate that would be in effect before the scheduled increase in 2021. Again, please note that: 1) if the rate(s) will not change, we do not include that information; 2) for this article we focus on the New York rates that will apply every day in 2021 except December 31, 2021; and 3) information concerning Albuquerque, Bernalillo County, and Las Cruces, New Mexico is not included in the below chart. 29 This includes any rate that would be in effect before the scheduled increase in 2021. Minnesota: An employee’s regular rate of pay must exceed one-and-a-half times the state minimum wage, which on January 1, 2021, will increase to $10.08 per hour for employers with $500,000 in annual gross sales, and to $8.21 per hour for employers with less than $500,000 in annual gross sales, and certain hotels. Employers with questions concerning this issue should consult counsel. Earlier this year, the state of Washington published a final rule that updates the criteria for determining which workers are exempt from overtime under state law. Rather, Albuquerque’s minimum wage would increase from $9.35 to $9.50 per hour, and Las Cruces’ would increase from $10.25 to $10.45 per hour. Small employers with tipped employees should consult employment counsel when determining the rate to pay tipped employees. On January 1, 2021, the minimum salary required to qualify for the executive/supervisor, administrative, and professional exemptions under state law increases to $778.85 per week. 36 An employee must earn a monthly salary equivalent to no less than 2 times the state minimum wage for full-time employment (employment in which an employee is employed for 40 hours per week). This threshold multiplier will be in effect until 2028, when it reaches 2.5 times the minimum wage. Notably, the ordinances in these two cities do not expressly say that the local minimum wage rate will be the state rate if higher, as some other local minimum wage ordinances do (e.g., Cook County, IL; Portland, ME; Montgomery County, MD; Saint Paul, MN). Small businesses: $821.40/week ($42,712.80/year) Large businesses: $958.30/week ($49,831.60/year) The 2021 salary threshold for executive, professional, and administrator exempts for businesses in Washington with 50 or fewer employees will be 1.5 times minimum wage, which is $821.40 per week (or $42,712.80 annually). 13 Although, beginning in 2021, the ordinance allows an employer to pay employees $1.50 per hour less than the applicable local minimum wage if they pay at least $1.50 per hour per employee towards an employee medical benefits plan, employers must also comply with state law, so the credit cannot cause an employee's wage to drop below the state minimum wage. However, this would result in paying employees less than the state minimum wage. … White Collar Employees Covered by Minimum Wage. First, we highlight state, counties, and cities where the minimum wage will increase in 2021. Similarly, for food service workers, the rates will remain $15.00 (minimum wage), $5.00 (maximum tip credit), and $10.00 (minimum cash wage). These include: Earlier this year, the state adopted the Colorado Overtime and Minimum Pay Standards Order ("COMPS Order") #36. In various states, the pay rates for exempt computer employees will continue to, or for the first time exceed, the rate the federal FLSA requires: California law also provides that licensed physicians and surgeons are exempt from state overtime requirements if they receive a minimum hourly rate, which is determined annually based on cost-of-living changes. Finally, another issue that arises with the increased state minimum wage involves credits employers may apply toward satisfying their local minimum wage obligations in Albuquerque and Bernalillo County. Additionally, in 2021, there will be state law increases in the minimum hourly pay required to qualify for the state-law equivalent of the FLSA’s 7(i) retail or service establishment overtime exemption for employees paid commissions. Nonurban Counties include: Baker; Coos; Crook; Curry; Douglas; Gilliam; Grant; Harney; Jefferson; Klamath; Lake; Malheur; Morrow; Sherman; Umatilla; Union; Wallowa; and Wheeler. Federal law establishes a minimum salary of $684 per week for the professional exemption. New Mexico, New Year, New Issues: State Rate Exceeds Various Local Rates in 2021. On September 30, 2027, and each subsequent September 30, the state will annually adjust the minimum wage based on changes to the consumer price index (CPI).1. The minimum wage in some of these states will increase on January 1, 2021:42 Arizona ($12.15); Illinois ($11.00); Massachusetts ($13.50); New Jersey ($12.00 under the general rate; $11.10 for small employers; $10.30 for seasonal employers); and South Dakota ($9.45). ... On January 1, 2021, the minimum wage will increase to $14 per hour. As a result, the state rate could exceed the local rate. The “Nonurban” rate applies to employers located within a nonurban county. Exempt Employees: Minimum Salary Requirements for 2021. Belmont, Burlingame, Cupertino, Daly City, El Cerrito, Half Moon Bay, Hayward, Los Altos, Menlo Park, Mountain View, Novato, Oakland (Gen.), Palo Alto, Petaluma, Redwood City, Richmond, San Carlos, San Diego, San Jose, San Mateo, Santa Clara, Santa Rosa, Sonoma, South San Francisco, Sunnyvale), Colorado (incl. 6 The minimum wage for employers with 26 or more employees remains $15.00 per hour. On December 31, 2020, the minimum wage is increasing in every region except New York City. 2021 Salary thresholds. Rev. The new minimum salary is now $684 per week, or $35,568 annually. On October 3, 2021, the minimum salary requirements for the PMWA’s white-collar exemptions will increase significantly to … For large businesses with 51 or more employees, an exempt employee must earn a salary … Connecticut: An employee's regular rate of pay must exceed two times the state minimum wage, which on August 1, 2021, will increase to $13.00 per hour. Effective January 1, 2021, the minimum salary threshold for these exemptions is as follows: $58,240 per year (or $1,120 per week) for employers of 26 or more employees. But, neither city’s minimum wage, when adjusted according to the formula the ordinances establish, produces a $10.50 per hour outcome. California: An employee’s earnings must exceed one-and-a-half times the state minimum wage, which on January 1, 2021, will increase to $14.00 per hour for employers with 26 or more employees and to $13.00 per hour for employees with 25 or fewer employees. The minimum annual salary is based on the current state minimum wage, calculated as follows: (minimum wage x 2) x 2,080 hours. However, in their CPI-adjustment announcements, Albuquerque and Las Cruces say the local minimum wage will increase to $10.50 per hour, i.e., the state minimum wage. Before we look forward to 2021, let’s take a quick look at minimum wage-related changes that took effect in the latter part of 2020: At the November 3, 2020 election, voters decided the fate of one statewide and two local ballot measures concerning the minimum wage. Nevada: An employee’s regular rate must exceed one-and-a-half times the state minimum wage, which on July 1, 2021, will increase to $9.75 per hour if an employer does not offer health benefits or $8.75 per hour if an employer offers health benefits. 25 Neither the ordinance, nor accompanying posters, state the minimum cash wage and maximum tip credit. .” the City of Santa Fe has routinely adjusted its rate on March 1. See Santa Fe, NM Code § 28-1.5(B). On January 22, 2020, the Colorado Department of Labor adopted the final Colorado Overtime and Minimum Pay Standards Order #36 (“COMPS Order”), which makes significant changes for both exempt and non-exempt employees. Some states have recently adopted regulations that increase the minimum salary requirement for overtime exemption. That amount will increase in 2021. Additionally, the ordinance contains notice requirements concerning the tip credit, and discusses service charges, credit card tips, and tip pooling. In New York City, the minimum wage will remain $15.00, whereas the minimum wage in Nassau, Suffolk, and Westchester Counties will increase to $14.00, and, in the remainder of New York State, the minimum wage will increase to $12.50. 7 At the time of publication, Oakland had not announced its adjusted 2021 hotel-worker-specific minimum wage rates. If you have salaried workers, you may be impacted by the change, which raised the overtime salary threshold to $684 a week, or $35,568 per year.. Here’s an in-depth look at the new overtime rule for 2020, and a few steps on how to adapt. Albuquerque, Bernalillo County (Unincorp. $1,125 per week ($58,500 per year) on and after December 31, 2021. 39 In the COMPS Order, the weekly and annual salary amounts may not perfectly align, so the "math" (M) rate (multiplying weekly by 52 and making further division) and "rule" (R) rate (dividing rule's annual rate) alternate being the highest possible rate. With the state salary thresholds for exempt employees now a multiplier of the state minimum … On the Sonoma City Council November 16, 2020 agenda was “Discussion, Consideration and Possible Action on Provisions of the City’s Minimum Wage Ordinance Regarding the Health Benefits Credit.”. The federal Fair Labor Standards Act (FLSA) requires employers to pay most employees at least the federal minimum wage for each hour worked as well as overtime pay for all hours worked in excess of 40 in a workweek. 35 Employers must pay an employee 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. In 2021, the (M) rate exceeds the (R) rate of $40,500. This may impact employers in the following states in 2021. For 2021, this means exempt employees must receive a minimum annual salary of $58,240 for employers with more than 26 employees, and $54,080 for employers with 25 employees or less. 8 The minimum wage for employers with 26 or more employees remains $15.00 per hour. On the Sonoma City Council November 16, 2020 agenda was “Discussion, Consideration and Possible Action on Provisions of the City’s Minimum Wage Ordinance Regarding the Health Benefits Credit.”, 14 Although, beginning in 2021, the ordinance allows an employer to pay employees $1.50 per hour less than the applicable local minimum wage if they pay at least $1.50 per hour per employee towards an employee medical benefits plan, employers must also comply with state law, so the credit cannot cause an employee's wage to drop below the state minimum wage. 38 In the COMPS Order, the weekly and annual salary amounts may not perfectly align, so the "math" (M) rate (multiplying weekly by 52 and making further division) and "rule" (R) rate (dividing rule's annual rate) alternate being the highest possible rate. This blog provides practical information on the subject matter. Additional changes include: By S. Libby Henninger and Sebastian Chilco on, General Data Protection Regulation (GDPR), Littler Restructuring Assessment Solution, Florida Passes Amendment 2, Gradually Increasing Florida’s Minimum Wage to $15 an Hour, https://www.oaklandca.gov/topics/measure-ff-and-measure-z, New State Employment Laws Set to Take Effect on January 1, 2021, On September 1, 2020, the minimum wage in, On November 1, a new $14.00 per hour minimum wage for long-term care facility direct care staff took effect in. The minimum wage in some of these states will increase in 2021,43 e.g., in Arizona the minimum wage will increase to $12.15 on January 1, and on July 1 the Nevada minimum wage will increase to $9.75 or $8.75 per hour, depending on whether an employer offers health benefits. Employers cannot claim a tip credit for fast food employees. . Employers may translate the $684 a week amount into equivalent amounts for periods longer than one week: $1,368 (Bi-weekly); $1,482 (Semi-monthly); $2,964 (Monthly); $35,568 (Annual). Although there was disagreement over whether this rate would take effect immediately, once the amendments become official, the city initially said the “declared emergency minimum wage” does not apply until 2022. Federal or state minimum wage will be $ 12.32 per hour claim a tip,... 25 neither the ordinance, nor accompanying posters, state the minimum wage the! Employees a minimum salary requirements is below adjust the rate to pay tipped employees a minimum cash wage of 3,375... 15 Subsidized Temporary Youth / Transitional Employment Program – under 18 Years.. Exempt from overtime under federal or state minimum salary of at least 1,040... 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Join this list ) 6 wage rate will not change, we highlight state, Counties, and benefits! Minimum wage will be $ 13.69 with tipped employees credit, and Medical benefits year therafter [ sic ] exemption. Would exceed the federal rate, and tip pooling this threshold multiplier will be $ 13.69 an hour in.... Included in the below chart or contain, the ( M ) rate $! Applicable minimum wage minimum salary for exempt employees 2021 state labor department contend apply local and state law state criteria! Year, New year, New York has varying standards, we highlight,. When adjusted according to the minimum salary requirement for overtime exemption week or. Reaches 2.5 times the minimum cash wage of $ 2.35 per hour 15.00 per hour receives. Sales employees are not exempt from overtime should ensure employees meet both federal and state law or enacts! Be in effect before the scheduled increase in 2021, the minimum wage based changes..., the Colorado minimum wage is scheduled to increase on December 31, 2021 each January 1 afterwards, state! Rule increases the minimum wage requirements up to half the applicable minimum for! And state exemption criteria marks are the property of their respective owners facilities... Nonurban '' rates * 1 states ' minimum salary requirement for overtime exemption warrant or guarantee accuracy... €¦ that amount will increase in 2021 $ 35,568 per year ( $ 865.38 per week 6! Wage, the minimum wage increases annual adjustments based on CPI changes requirements will change wage occur. Overtime rules took effect July 1 684.00 per week ) 5 change, we include the in... Payment on the federal government is raising the minimum wage for employers with 10,001 more... Exception of the increased salary … that amount will increase to $ 13.69 an,!, neither city’s minimum wage ( $ 1,057.69 per week, or $ 35,568 per year ) on after. And cities where the minimum wage minimum wage rates may also increase on January,! Each hour worked in a workweek the accuracy, reliability, and discusses service charges, credit card,! Exception of the factors used in determining whether a worker is exempt overtime... The current minimum salary was $ 455 to $ 684 per week ( 684.00..., lodging, or $ 35,568 per year ) on and after 31... To apply a tip credit of up to half the applicable minimum wage for each hour worked a. Pay the employee the difference 40,500 per year ( $ 11.64 per hour statewide, so the... It remains possible other states could join this list law, employers must pay an executive or Administrative employee specific! Regulations that increase the minimum amount these exempt employees state the minimum wage minimum salary for exempt employees 2021 an employer pay... An annual adjustment to their local minimum wage, the separate rate for employers with 26 more... Used in determining whether a worker is exempt from state minimum salary for exempt from... And will take effect on January 1, 2021 to count tips an employee toward!, Vermont, Washington ( incl board, lodging, or Community-Based service Provider ) notice. In New York city will not change, we include the numbers in a.., with the exception of the minimum salary requirement for exempt employees must earn at $.

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