To qualify for exemption, employees generally must be paid at not less than $684 * per week on a salary basis. 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. wage rate for New York City employers remains $15 per hour for all Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney. Rev. 8 The minimum wage for employers with 26 or more employees remains $15.00 per hour. ), 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. Employers can satisfy this obligation through wages (including applicable commissions, piece-rate, and bonuses), tips, and medical benefits. Moreover, many have established rate increases across multiple years, sometimes followed by annual adjustments based on CPI changes. covered by the "miscellaneous industries" wage order was The City of Denver also increased the standard minimum wage for all citywide workers in 2021 to $14.77/hr for standard pay, and $9.83 for tipped workers. 40 An employee’s regular compensation, when converted to an annual rate, must exceed 3,000 times the state minimum wage or the annualized FLSA rate set by the U.S. Labor Department, whichever is higher. Additionally, in a handful of states, outside sales employees are not exempt from state minimum wage requirements. See Santa Fe, NM Code § 28-1.5(B). 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. 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. Note that some – but not all – New York rates will also increase on December 31, 2021. 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. What is an exempt employee? All Rights Reserved. Washington state and Seattle minimum wages for non-exempt employees are set to go up on January 1, 2020. © Mondaq® Ltd 1994 - 2021. Under the FLSA, non-exempt employees must be paid the minimum wage or higher. Additionally, the ballot measure changes the minimum cash wage for tipped employees standard from half the state minimum to half the local minimum wage. If the state minimum wage, the wage rate will increase on December 31, 2020. 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. 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. However, this would result in paying employees less than the state minimum wage. First, we highlight state, counties, and cities where the minimum wage will increase in 2021. New York State employers, though, must be mindful that, a Richmond, CA Code § 7.108.040. Montgomery County, MD (11-50 or ≥11 & Tax-Exempt,  Home Health, or Community-Based Service Provider). 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. Salary Test for Exempt Employees . California's increased minimum wage will also impact commissioned inside salespeople. Also, various cities and local governments in California have enacted minimum wage ordinances exceeding the state minimum wage. 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. The 2016 rule also increased the minimum salary for HCEs (to $134,004), allowed employers to use nondiscretionary bonuses and incentive pay to satisfy up to 10% of the salary threshold, and provided for automatic annual updates to keep the minimum salary level adjusted to the 40th percentile of full-time salaried workers in the lowest-wage Census region. The new stimulus bill (the Consolidated Appropriations Act of 2021 or CAA) imposes new disclosure requirements for brokers and consultants providing services to ERISA health plans. 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. These numbers are calculated by doubling the applicable minimum wage, multiplying that … 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. Note that pending or future legislation might change minimum wage rates that will apply in 2021, so we recommend employers monitor legislative developments and consult with counsel to confirm rates did not change since publication. Most of these changes are effective January 1, 2021, though states including Connecticut, Nevada and Oregon will see increases later in the year. In states that do not set a minimum wage rate, or have an antiquated minimum wage rate that is less than the rate set by the Federal government, the Federal minimum wage rate will take precedence and apply to all employees within that state. Exempt Administrative and Executive Minimum Salaries. The minimum monthly salary for sheepherders is specially set under IWC Wage Order 14-2001. for these "miscellaneous" employers. While most people will not be sad to leave 2020 behind, employers across much of New York State will see an increase to their labor costs in 2021, even though much of the state is navigating recession-like conditions caused by the Covid-19 pandemic. Food Service Worker: A food service worker must receive a wage of at least the hourly Cash Wage (CW), and a tip credit cannot exceed the below-specified hourly rate provided the total of tips received plus the wages equals or exceeds the hourly total minimum wage rate (MW). 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). 4 The minimum wage for employers with 26 or more employees remains $15.00 per hour. A Review Of 2020 Labor & Employment Legislation In California. 9 If an employer pays at least $1.50 per hour per employee towards an employee medical benefits plan, which allows the employee to receive employer-compensated care from a licensed physician, the employer can pay employees $1.50 per hour less than the minimum wage. In keeping with the gradual increase in the State's minimum The minimum wage for employers with 25 or fewer employees will increase to $13.00 per hour on January 1, 2021. CT State Statute 31-76i - exempt employees not covered for the purpose of overtime payment. 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. The minimum salary for exempt executive and administrative employees in New York will increase as follows: Nassau, Suffolk, and Westchester counties: $1,050 per week, which equals $54,600 per year. In these jurisdictions, such employees must earn at least the applicable minimum wage for each hour worked in a workweek. The increases depend on employer size and location. 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. guide to the subject matter. For 2021, the Washington minimum wage will be $13.69 per hour (an increase from the current $13.50 per hour). These employees are exempt from being paid overtime for hours worked over 40 each week. They are as All three of the above exemptions require payment of a true salary: "Salary" is defined as agreed-upon periodic compensation, intended to cover a period of at least a week, equivalent to at least $684 per week,* that is not subject to … Full local credit without violating state law Las Cruces, New Mexico is not to! 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