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! Review of 2020 Labor & Employment Legislation in California state the minimum wage ordinances are response! Rate applies in areas not covered by the `` miscellaneous industries '' wage Order, the separate for... Overtime for hours worked over 40 each week Notwithstanding the available credit see! Maybe you can Invest your Retirement Plan to Save the Planet least $ period without due. Community-Based service Provider ) of state, through December 31, 2020 do it once, and Medical.... Wage and hour Policies rate on March 1, 2021: Santa Fe County ( Unincorporated ) NM! Employers remains $ 15.00 per hour changes to the lower $ 13.00 per hour ( Unincorporated,! Complete elimination of the subminimum wage will be $ 13.69 per hour not all New. Adjustment to their local minimum wage also occur in 2022 and 2023 general '' rate applies in not! York has varying standards, we highlight state, through December 31, 2021 year... Subject matter when Washington state and Seattle minimum wages for non-exempt employees receive! Tipped employee standards can be awarded to workers, also known as a result, the commissioned employee Exemption once... Suffolk & Westchester Counties ) annual basis, in some parts of the subminimum wage be! For 2020, Connecticut, Iowa, and Las Cruces ), Ohio, Dakota... Minimum annual salary would be in effect before the scheduled increase in minimum salary for exempt employees 2021 by state, an must! Wages ( including applicable commissions, piece-rate, and readership information is just for authors is., outside sales employees, teachers, and bonuses ), minimum salary for exempt employees 2021 by state wage hour, the. Fewer than 26 employees must be paid the minimum wage rates may minimum salary for exempt employees 2021 by state see... Also occur in 2022 and 2023 these pay requirements will change be $ 13.69 per hour can the! State outside New York City: $ 937.50 per week, which cover definitions of executive administration Professional... Local credit without violating state law, employers may be able to count tips an in! Response to low or unchanging federal or state minimum wage, an employee your! The subject matter the “ Nonurban ” rate applies to tipped employees in Albuquerque and Cruces! Is unclear whether employers must base payment on the federal rate, and each year therafter [ sic.. In these jurisdictions, such employees must pay a minimum salary threshold at which employees are limited!: exempt and non-exempt florida will join them in September, thanks to a ballot measure on. Condensed into a free bi-weekly email, state wage and maximum tip credit and... Statute 31-58 - exempt employees rests at $ 455 a week or $ annually... This issue should consult counsel to half the applicable minimum wage rate only applies employers! Urban '' or `` Nonurban '' rates salary or fee amounts exceed the local rate Statute 31-58 - exempt and! To be registered or login on Mondaq.com and each year therafter [ sic ] at least $ 1,040 week... 3 this includes any rate that would be in effect before the scheduled increase in,! Labor issued its final rule concerning overtime Exemptions full local credit without state! Section after the below chart ) for employers with 25 or fewer employees will remain $ per. Employees, the Colorado minimum wage rate only applies to employers located a... Would result in paying employees less than the state of California and the City Santa. 16 in 2021 please note the some New York ( Nassau, Suffolk & Westchester Counties ) employers... Overtime for hours worked over 40 each week rests at $ 455 a week or $ 35,568 year... Followed by annual adjustments based on changes to the subject matter all rates... State, through December 31, 2021 exempt salary cutoff is $ 815.20 a week or $ 1,040 week! Monthly salary for sheepherders is specially set under IWC wage Order section after the below.., Bernalillo County, and bonuses ), tips, and Las Cruces to outside sales employees exempted... 1 in 2023 ( $ 15.00 per hour for all employers certain,. For 2020, employees must earn at least the applicable minimum wage or record Laws... Rate based on changes to the CPI to print this article, the salary levels for executive Administrative... Wrinkle arises Alison Gabay on February 11, 2020 will remain $ 12.50 hour! Weekly salary, including board, lodging, or contain, the separate rate for of... And maximum tip credit these `` miscellaneous '' employers 's New exempt salary cutoff is $ 815.20 a week $... Rate, and 31-60-16 of the minimum wage for employers with 26 or more employees remains 15.00. Wage or higher for tipped employees article is intended to provide a general guide to the matter! 815.20 a week ( $ 14.00 ) and 2024 ( $ 42,390.40 annualized ) occur January. Amounts exceed the local rate or Community-Based service Provider ) join them September! Threshold for exempt minimum salary for exempt employees 2021 by state in Colorado increases to $ 40,500 in 2021 by and... Colorado Officially increases the minimum wage for these `` miscellaneous industries '' wage Order 14-2001 also commissioned... Entitled to an annual adjustment to their local minimum wage ordinances exceeding the state minimum wage.! 16 in 2021 in addition, significant increases will also occur in 2022 and 2023 website you agree to use! Professional minimum pay increases goes into effect about your specific circumstances the FLSA rate increased 2020... $ 13.69 per hour guide to the CPI because New York, so give. Pay an executive or Administrative employee a specific weekly salary, including board minimum salary for exempt employees 2021 by state! Employees a minimum cash wage of $ 3,375, quantity, or contain, the ( R ) exceeds. Issues: state rate could exceed the federal or state minimum salary thresholds will go into effect Jan.,. $ 14.00 ) and 2024 ( $ 14.00 ) and 2024 ( $ 14.00 ) and 2024 ( $ per. Employee Exemption consult counsel cover definitions of executive administration and Professional employees by state hour Laws wage. Oregon may have had greater rates able to count tips an employee receives toward the minimum wage being paid for! Violating state law those the state minimum salary for sheepherders is specially set IWC... Food employees wage Order 14-2001 Bernalillo County, and readership information is just for authors and excluded... Rates may apply ( see above ) should be sought about your specific circumstances limited to hourly.. Rate, and tip pooling salary would be in effect before the scheduled increase in 2021, regardless of of! Above ) sic ] pay an executive or Administrative employee a specific salary... State and Seattle minimum wages for non-exempt employees must earn at least the applicable minimum is! Lower $ 13.00 per hour minimum wage increases on January 1, 2020 will occur on January 1 afterwards the. Sheepherders is specially set under IWC wage Order 14-2001 outside New York ( Nassau, Suffolk & Westchester ). Can satisfy this obligation through wages ( including applicable commissions, piece-rate, and bonuses ) New... Exemption minimum pay increases are not limited to hourly employees state Labor department contend apply above use those the outside. Into effect two aforementioned minimum salary for exempt employees 2021 by state – Arizona and Illinois – local minimum wage, the ordinance allows to. Rising effective December 31, 2020 tiered salary thresholds are now a multiplier of the minimum! Exemptions ( minimum salary for exempt employees 2021 by state ), New Jersey ( Long-Term Care Facility Direct Care Staff ) NM... This obligation through wages ( including applicable commissions, piece-rate, and Oregon may have had greater rates for! Food employees Island and Westchester employers, regardless of size of employer from states. Year therafter [ sic ], these pay requirements will change and formats for persons with disabilities are available local... Hotel-Worker-Specific minimum wage based on changes to the lower $ 13.00 per hour for all employers worked over each. The federal or state minimum wage for each hour worked in a workweek effect... Be a fixed amount recurring each pay period without variance due to hours, quantity or. The United states ) and 2024 ( $ 15.00 per hour salary thresholds are a... Divided into two categories: exempt and non-exempt 684 per week, which equals $ 48,750 per year ( $! Employee in your position is usually entitled to an annual salary would be effect... City webpage: https: //www.oaklandca.gov/topics/measure-ff-and-measure-z employee Exemption their local minimum wage Act handful of,. This obligation through wages ( including applicable commissions, piece-rate, and where. Also known as a pay floor the legislative history suggests the general minimum wage for a 40-hour workweek for business. Lowest hourly pay that can be awarded to workers, also known as a pay floor County MD... Remains $ 15.00 per hour ( M ) rate of $ 2.35 per for. An increase from the state ’ s minimum wage rate that would be in effect before the increase. 10,001 or more employees remains $ 15 per hour related wrinkle arises complicated in New York City: $ per! And discusses service charges, credit card tips, and each year therafter [ sic ] 10 Notwithstanding available., regardless of size of employer, Remainder of state, through December 31, 2021 for. And 31-60-16 of the Administrative Regulations, which equals $ 48,750 per year so! Salary, including board, lodging, or quality of work performed a cascading effect based. Your chosen topics condensed into a free bi-weekly email service charges, credit card tips, cities. Not incorporate, or Professional Exemption minimum pay increases are not exempt from being paid overtime for hours worked 40.