['Compensation']
['Exemptions from Overtime/Minimum Wage']
10/29/2024
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Summary of differences between federal and state regulations
Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional, and outside sales employees. Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees.
To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $844 per week (effective 7/1/24; $1,128 per week effective 1/1/25). Job titles do not determine exempt status. In order for an exemption to apply, an employee’s specific job duties and salary must meet all the requirements of the Department’s regulations.
These salary minimum does not apply to outside sales employees, teachers, and employees practicing law or medicine. Exempt computer employees may be paid at least $844 ($1,128 effective 1/1/25) on a salary basis or on an hourly basis at a rate not less than $27.63 an hour.
The following individuals are exempt from the Washington minimum wage provisions: hand harvest laborer, domestics, those in executive, administrative, or professional positions, outside sales people, newspaper vendors and carriers, carriers subject to the Interstate Commerce Act, prisoners, elected or appointed officials, crews of state ferries, seamen on other than American vessels.
In addition, the following are exempt from Washington's overtime provisions: seamen, seasonal workers at concession or recreational establishments, forest protection and fire prevention employees, movie projectionist, truck or bus drivers subject to the Federal Motor Carrier Act, farm laborers, and employees of an air carrier who are subject to the Railway Labor Act.
Washington has additional requirements (beyond the federal provisions) for computer employees and for outside sales employees. In addition, the state does not recognize the “highly compensated employee” exemption for those earning more than $132,964 per year ($151,164 effective 1/1/25).
The state generally follows the federal rules that were in effect prior to 2004 and therefore does not allow unpaid disciplinary suspensions of less than one workweek. The state also may not recognize the federal “concurrent duties” provision for executives.
Increases to the state minimum salary level for white-collar exempt employees began to be phased in on July 1, 2020. On this date, the salary threshold increased to $675 per week ($35,100 per year). The salary threshold incrementally increases through January 2028.
Salaried executive, administrative and professional workers, and computer professionals must earn a salary above a minimum specified amount to remain exempt.
The salary thresholds are now based on a multiplier of the minimum wage and increase on January 1. Because the new state thresholds will be more favorable than the federal threshold, Washington employers must adhere to the state thresholds.
For small employers with 1 - 50 employees:
- Effective January 1, 2028, the threshold is $1,795.00 per week ($93,340.00 per year)
- Effective January 1, 2027, the threshold is $1,575.90 per week ($81,946.80 per year).
- Effective January 1, 2026, the threshold is $1,537.20 per week ($79,934.40 per year).
- Effective January 1, 2025, the threshold is $1,332.80 per week ($69,305.60 per year).
- Effective January 1, 2024, the threshold is $1,302.40 per week ($67,724.80 per year).
- Effective January 1, 2023, the threshold is $1,101.80 per week ($57,293.60 per year).
For employers with 51 or more employees:
- Effective January 1, 2028, the threshold is $1,795.00 per week ($93,340.00 per year).
- Effective January 1, 2027, the threshold is $1,751.00 per week ($91,052.00 per year).
- Effective January 1, 2026, the threshold is $1,537.20 per week ($79,934.40 per year).
- Effective January 1, 2025, the threshold is $1,499.40 per week ($77,968.80 per year).
- Effective January 1, 2024, the threshold is $1,302.40 per week ($67,724.80 per year).
- Effective January 1, 2023, the threshold is $1,259.20 per week ($65,484.00 per year).
There are also changes in the thresholds for exempt computer professionals paid by the hour.
Regarding the duties test, updates to Washington’s rules that spell out what type of workers don’t have to receive overtime pay took effect July 1, 2020. The rules establish the criteria for certain workers to be considered exempt from getting overtime pay and other protections under the State Minimum Wage Act.
The July update was primarily to the part of the rules known as the “job duties test.” In general, it helps determine which workers are considered executive, administrative, and professional employees, as well as computer professionals and outsides salespeople. Workers who fit into these categories based on the duties they perform, and earn more than the required salary threshold, can be considered exempt.
Although Washington state previously used two job duties tests to determine if an employee could be classified as exempt, effective July 1, 2020, the state began using a single test that was aligned more closely with federal standards. The test for each exemption spells out what duties an employee must perform to be classified as exempt, regardless of the employee’s job title or job description.
State
Contact
Washington Department of Labor and Industries Specialty Compliance Services Division
Regulations
Revised Code of Washington
Chapter 49.46 RCW - Minimum Wage Act
RCW 49.46.010 Definitions
Washington Administrative Code (WAC) Title 296, Chapter 296-128, Sections:
296-128-510 Executive
296-128-520 Administrative
296-128-530 Professional
296-128-532 Deductions for salaried, exempt employees
296-128-533 Public employees
296-128-535 Are professional computer employees exempt from the Washington Minimum Wage Act?
296-128-540 Outside salesman.
See also Common questions about state vs. federal “white-collar” (management) overtime pay
www.lni.wa.gov/WorkplaceRights/Wages/Overtime/Exemptions/Management/default.asp
Federal
Contact
The Department of Labor is the federal agency that monitors hours worked.
Regulations
Regulations for exempt employees can be found in CFR 29 Part 541, Defining And Delimiting The Exemptions For Executive, Administrative, Professional, Computer And Outside Sales Employees
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