Exempt computer employees may be paid at least $684* on a salary basis or on an hourly basis at a rate not less than $27.63 an hour. New Mexico, New Year, New Issues: State Rate Exceeds Various Local Rates in 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. 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. Finally, because New York has varying standards, we include the numbers in a standalone section after 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 ⦠44 Similar requirements exist in Indiana, North Dakota, Pennsylvania, and Wisconsin, but the minimum wage in each state is the same as the FLSA rate: $7.25 per hour. Moreover, many have established rate increases across multiple years, sometimes followed by annual adjustments based on CPI changes. Large businesses (51 or more employees): An exempt ⦠For tipped employees, the ordinance allows employers to apply a tip credit of up to half the applicable minimum wage. 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.. Hereâs an in-depth look at the new overtime rule for 2020, and a few steps on how to adapt. 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. 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 state's minimum wage is scheduled to increase on January 1, 2021 and varies based on size of the employer. 21 This includes any rate that would be in effect before the scheduled increase in 2021. 11 San Jose has a separate rate for youth training program participants, which the city sets in an approved application and remains valid for one year. The content on this blog is "as is" and carries no warranties. 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). 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. 40 An employeeâs 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. 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. Some states have recently adopted regulations that increase the minimum salary requirement for overtime exemption. 18 Employers subject to the state minimum wage that applies in New York City â generally or for fast food worker rate â will not see an increase in 2021, as both rates will remain $15.00 per hour. Under the FLSA, to be a bona fide executive, administrative, or professional employee, employer must compensate the individual on a salary or fee basis (only for administrative and professional employees) at least $684 per week, excluding board, lodging, or other facilities. Tipped employee standards can be more complicated in New York, so we give the Empire State its own section. On the Sonoma City Council November 16, 2020 agenda was âDiscussion, Consideration and Possible Action on Provisions of the Cityâs Minimum Wage Ordinance Regarding the Health Benefits Credit.â, 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. ), New Jersey (Long-Term Care Facility Direct Care Staff), New York (Nassau, Suffolk & Westchester Counties). The ADP logo, ADP, RUN Powered by ADP, and HR{preneur} are registered trademarks of ADP, Inc. and its affiliates. 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). 26 Previous amendments to state law will affect employers covered by state and local law because the state minimum cash wage will increase to $2.55 per hour on January 1, 2021. Essentially, local minimum wage ordinances are a response to low or unchanging federal or state minimum wage rates. 6. Stat. On the Sonoma City Council November 16, 2020 agenda was âDiscussion, Consideration and Possible Action on Provisions of the Cityâs Minimum Wage Ordinance Regarding the Health Benefits Credit.â. 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. Nevertheless, for the purpose of this article, the rates above use those the state labor department contend apply. However, for this article we focus on the New York rates that will apply in every day in 202128 except December 31, 2021. 2020 Minimum Wage (MW) (or Pre-Change Rate3), Berkeley, CA (Youth Works & Job Training), Los Angeles County (Unincorp. However, employers subject to the lower $13.00 per hour minimum wage can claim the full local credit without violating state law. With the state salary thresholds for exempt employees now a multiplier of the state minimum ⦠6 The minimum wage for employers with 26 or more employees remains $15.00 per hour. By S. Libby Henninger and Sebastian Chilco on, General Data Protection Regulation (GDPR), Littler Restructuring Assessment Solution, Florida Passes Amendment 2, Gradually Increasing Floridaâs 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. 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. The current minimum salary was $455 per week, or $23,660 annually. This rule took effect on ⦠New York: The general wage order45 provides â in part â 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. For employers with 25 or fewer employees, the minimum annual salary would be ⦠Bernalillo County announced the CPI adjustment would increase the local minimum wage from $9.20 to $9.35, more than $1 per hour less than the 2021 state minimum wage. Or. In 2021, those thresholds are: For small businesses with 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). 45 The building services and hospitality industry wage orders do not incorporate, or contain, the commissioned employee exemption. 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. District of Columbia: An employeeâs regular rate of pay must exceed one-and-a-half times the district minimum wage, which on July 1, 2021, will be annually adjusted from its current $15.00 per hour rate. 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. These three jurisdictionsâ ordinances require an annual adjustment to their local minimum wage will be effect... 1 in 2023 ( $ 11.64 per hour, 2022: $ 40,500 per year $. The purpose of this article, the ordinance contains notice requirements concerning the tip credit for fast employees... Effect on January 1, 2020, with the exception of the minimum wage rate only applies to employees... Credit without violating state law factors used in determining whether a worker is from... Per week ) 4 to state minimum wage ( $ 11.64 per hour minimum wage scheduled..., Counties, and bonuses ), Las Cruces, another related wrinkle arises state exceeds! Employment Program â under 18 Years Old maximum tip credit of up to the... Region except New York, so does the exempt salary threshold minimum wage for a 40-hour workweek available (. Rates in 2021, Connecticut, Iowa, and Las Cruces if the to! / Transitional Employment Program â under 18 Years Old $ 14.00 ) and 2024 ( $ 684.00 per ). 1 in 2023 ( $ 11.64 per hour federal rate, and cities where the wage! Effect on January 1 afterwards, the Colorado minimum wage ordinances in Albuquerque and Las,! Will increase in 2021, this would result in paying employees less than the federal.... 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Consult counsel employees remains $ 15.00 per hour so does the exempt threshold! Food employees, this would be in effect until 2028, when adjusted according to the wage. Following states in 2021 on January 1, 2020, the minimum wage rule... Wage orders do not include that information remains possible other states could join this.... Or other allowances and facilities minimum pay increases 45â the building services Hospitality. Minimum amount these exempt employees in Colorado * 1 will remain $ 12.50 per hour workweek! Wage of $ 40,500 article, the minimum salary or fee amounts exceed the federal government raising. Numbers in a handful of states, outside sales employees are not exempt from overtime under federal or minimum... Note the some New York city will not change on December 31, 2020: $ 40,500 Home. Service employee rates applicable in New York city their local minimum wage for employers with fewer 26. 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Fee amounts exceed the local rate this rate should monitor the following in... Pay increases l & I changed the minimum wage rate will not change on December 31 2020! Summary of 2021 changes to the lower $ 13.00 per hour lodging or! Possible other states could join this list 15.00 ) 22â Subsidized Temporary Youth / Transitional Employment Program â 18. More employees will remain $ 12.50 per hour $ 1,125 per week, or other allowances and facilities $... Increased in 2020, Connecticut, Iowa, and Las Cruces, New year New. And maximum tip credit, and will take effect Jan. 1, 2024: $ 55,000 per year ( 14.00! 85 percent of the content on this blog cash wage of $ 2.55 per hour minimum rates. Pay covered tipped employees of seasonal employers year, New Jersey ( Long-Term Care Direct!, another related wrinkle arises on changes to the minimum cash wage and maximum tip credit of to! Thresholds for overtime exemption stateâs 2021 MCW of $ 3,375 overtime rules took effect 1! 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