Washington Proposes to Change White Collar Exemption Rules
The Washington Department of Labor and Industries (DLI) has released a pre-draft version of proposed white collar overtime exemption rules that are used to determine which employees are required to receive minimum wage, overtime pay, and paid sick leave. The DLI wants to update the duties tests and salary thresholds for exempt employees. Comments on the proposed rules must be submitted by October 26, 2018. A rulemaking timeline explains the process.
Currently, the salary threshold for an executive, administrative, or professional employee working in Washington State is $250 a week or $13,000 a year. The proposed salary threshold would be 1.5 to 3 times the minimum wage ($12 an hour, effective January 1, 2019) for a 40-hour workweek. This means the new salary threshold could range from $720-$1,440 a week or $37,440-$74,880 a year. Thus, an employee earning less than the new salary threshold would be a nonexempt employee.
Interested in more state and local payroll coverage? APA’s PayState Update eNewsletter is perfect for you.