Page 4 - TPM Newsletter JAN 2020

4 January 2020
WA - State and Federal Changes to Over me

Changes to Washington & Washington’s threshold will
Federal Over me Rules exceed the federal level on
The Department of Labor & January 1, 2021. At that
Industries announced updates me, businesses with 1-50
to Washington’s over me rules. employees will have to pay
These rules will go into eff ect exempt employees at least 1.5
on July 1, 2020 with phased-in mes the state minimum wage,
implementa on through 2028. about $827 a week ($43,004 a
These rules are meant to restore year). For businesses with 51 or
over me protec on to tens of thousands of workers and more employees, the threshold will be 1.75 mes the
create a fair minimum salary level for workers who don’t minimum wage, about $965 a week ($50,180 a year).
receive over me pay.
There will be incremental increases in the state threshold
The new rules use a formula based on the state minimum un l January 1, 2028, when it reaches the fi nal 2.5 mes
wage to determine the minimum salary a worker must the state minimum wage. A er that, the salary threshold
receive to be exempt from over me. The changes will will rise when the minimum wage is increased for infl a on.
be phased in star ng July 1, 2020, and will be fully
implemented by January 2028. “We recognize how all this might impact businesses.
That’s why the implementa on of the new state rules
Beginning July 1, 2020 the state minimum salary won’t begin un l next July, and they will be phased in
threshold will increase to $675 a week ($35,100 a over several years. We also have an outreach plan to
year) for all businesses, which is 1.25 mes the state’s assist businesses with the transi on,” said Joel Sacks, L&I
minimum wage. The threshold will increase incrementally Director.
un l 2028 when it is expected to reach approximately
$1,603 a week (about $83,356 a year) for an over me Over me exempt requirements
exempt worker, 2.5 mes the minimum wage. In To be over me exempt, an employee generally must
addi on, the adopted rules also update the job du es be paid a fi xed salary, must perform certain defi ned job
tests that are used, with the salary threshold, to du es, and the salary must meet or exceed the salary
determine if an employee can be exempt from over me. threshold. Employers have mul ple op ons to comply
with the rules. For example, they can convert current
Federal over me rules take eff ect on January 1, 2020. salaried exempt employees to salaried non-exempt
Ini ally, Washington employers will be required to follow or hourly non-exempt, and pay over me for any work
the new federal over me rule which takes eff ect on over 40 hours in a workweek. To reduce over me costs,
January 1, 2020. The recently updated federal threshold, employers could limit the number of hours of work to 40
at $684 a week ($35,568 a year), will be slightly higher per week, or less. If they wish to maintain the employee’s
than Washington’s un l 2021. When state and federal exempt status, they would need to ensure the employee
thresholds confl ict, businesses must meet the threshold meets the du es test requirements and is paid at least
most favorable to employees. the updated salary threshold requirements.

WA - Paid Family & Medical Leave
Washington workers are now able to use Paid Family V Collect and remit premiums. This requirement
and Medical Leave benefi ts. These benefi ts will generally began January 1, 2019, however, if you did not start
allow up to 12 weeks of paid leave to care for themselves collec ng premiums from employees at that me,
or their family per year. The Paid Family and Medical there is no penalty and you can begin withholding at
Leave is a statewide insurance program. Review the any me provided you give your employees no ce
following informa on to understand your role as a small one pay period in advance.
business owner and stay in compliance with the new law.
V Display a mandatory poster to no fy employees
of the program. The poster will be available before
With very few excep ons, employers will have a
responsibility to: January 1, 2020.
For addi onal employer informa on and to access the
V Report employee wages, hours worked and other
mandatory poster for prin ng, visit: h ps://paidleave.wa.gov/
informa on for all employees. employers/

Timber Products Manufacturers Associa on