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workweek. The overtime rate is one-and-one-half times an employee’s regular rate
of pay. While the WMWA generally mirrors the requirements of the FLSA, in some
respects the WMWA is more protective of employees than the FLSA. Employers
covered by both statutes must comply with the law that is more generous to the
employee. Note that for many years, the minimum wage set by the WMWA (and
adjusted annually) has been higher than the federal minimum wage. Also keep in
mind that some cities in Washington, including Seattle and Tacoma, have higher
minimum wage rates than Washington State, and the municipal rate may vary
based on the employer’s size. For more information on the current minimum wage
rate in Washington, see Wash. State Dep’t of Labor & Indus., Minimum Wage,
http://www.lni.wa.gov/WorkplaceRights/Wages/Minimum/ (last visited Mar. 2,

2018).

b. Classifying Employees

(i) Classification of Exempt and Nonexempt Employees

By and large the most common mistake that employers make in the
administration of wage and hour laws is misclassifying employees as exempt from
the requirements of the FLSA and the WMWA. This mistake can be costly as both
recordkeeping and overtime requirements differ for exempt and non-exempt
employees.

To avoid misclassification, employers should start with the assumption that
every employee is covered by minimum wage and overtime requirements, and
work back from that starting point. The FLSA was enacted in 1938, during the
height of this country’s Great Depression. The overtime premium was designed to
incentivize employers to hire additional employees rather than lengthening the
hours of existing employees. Given this statutory mandate, FLSA exemptions were
narrow from their inception, and, although now seen more as a protection for
workers, continue to be narrowly tailored.

(ii) The Big Three “White Collar” Exemptions

The most common exemptions under the FLSA and the WMWA are the so-
called “white-collar” exemptions. They are also the most misunderstood
exemptions. Bona fide executive, administrative, professional and computer
employees are exempt from the overtime requirements of both the FLSA and the
WMWA, but that leaves open the question of who is a bona fide executive,
administrative or professional employee.

WASHINGTON NONPROFIT HANDBOOK -224- 2018