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. 6 The minimum wage for employers with 26 or more employees remains $15.00 per hour. Like the minimum wage, the salary levels … Earlier this year, the state of Washington published a final rule that updates the criteria for determining which workers are exempt from overtime under state law. The “Nonurban” rate applies to employers located within a nonurban county. This threshold multiplier will be in effect until 2028, when it reaches 2.5 times the minimum wage. Similarly, for food service workers, the rates will remain $15.00 (minimum wage), $5.00 (maximum tip credit), and $10.00 (minimum cash wage). January 1, 2021: $40,500 per year ($778.85 per week) 3. ), Las Cruces), Ohio, South Dakota, Vermont, Washington (incl. ... On January 1, 2021, the minimum wage will increase to $14 per hour. The rule increases the salary threshold for employees exempt under the executive, administrative, and professional exemptions (the “white collar exemptions”) from $455 per week (or $23,660 annually) to $684 per week (or $35,568 annually). Materials accompanying the ballot measure do not discuss the affect, if any, of the ballot measure’s amendments on the Department’s adjustment (e.g., Amendment 2 says the state will annually adjust the rate beginning on September 30, 2027). To help manage this challenge, below we provide a rates-only update that details scheduled state- and local-level wage increases throughout 2021 so employers can determine the minimum amount they must pay non-exempt, tipped, and certain exempt employees. Employers with fewer than 26 employees must pay a minimum salary of at least $1,040 in 2021. Additionally, in a handful of states, outside sales employees are not exempt from state minimum wage requirements. 10 Notwithstanding the available credit (see previous footnote), employers must comply with local and state law. For employers with 25 or fewer employees, the minimum annual salary would be … The 2021 thresholds for computer professionals who are paid by … 37 An executive, supervisor, administrative, or professional employee must be paid a salary that is at least the level listed and sufficient for the minimum wage for all hours in a workweek. Essentially, local minimum wage ordinances are a response to low or unchanging federal or state minimum wage rates. Washington: An employee’s regular rate of pay must exceed one-and-a-half times the state minimum wage, which on January 1, 2021, will increase to $13.69 per hour. 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. Please note that in the following states with 2021 rate increases, tip credits are prohibited (so they are not included below): Alaska; California; Minnesota; Montana; Nevada; New York (Employees outside the hospitality wage order only);Oregon; and Washington State. In many cases, the state criteria are harder to meet than the federal criteria. 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. In 2021, the (M) rate exceeds the (R) rate of $3,375. However, an employer’s ability to claim the tip credit is dependent on an employee’s weekly tip average equaling at least the hourly Tip Threshold (TT) (or TT(R) for resort hotel service employees) and an employee’s direct wage plus tips equaling or exceeding the minimum wage. Albuquerque says the 2021 MCW will be $6.30 (rather than $5.70) and Las Cruces says the 2021 MCW will be $4.20 (rather than $4.18). 6. 21 This includes any rate that would be in effect before the scheduled increase in 2021. Most provisions become effective March 16, 2020, with the exception of the increased salary … Note, however, that under Maine law, the minimum salary level for exempt employees must exceed 3000 times the applicable state minimum … On January 22, 2020, the Colorado Department of Labor adopted the final Colorado Overtime and Minimum Pay Standards Order #36 (“COMPS Order”), which makes significant changes for both exempt and non-exempt employees. Albuquerque, Bernalillo County (Unincorp. Connecticut: An employee's regular rate of pay must exceed two times the state minimum wage, which on August 1, 2021, will increase to $13.00 per hour. If the state minimum wage, the wage rate will increase on December 31, 2020. Effective January 1, 2021, for licensed physicians and surgeons, the minimum hourly rate of pay will increase from $84.79 to $86.49. Large businesses (51 or more employees): An exempt employee must earn a salary … Directly below we highlight the minimum cash wage (MCW) that may be paid, and the maximum tip credit (TC) employers can claim, for covered tipped employees, as well as the amount of the increase. Employers cannot claim a tip credit for fast food employees. However, this would result in paying employees less than the state minimum wage. 33 Until the FLSA rate increased in 2020, Connecticut, Iowa, and Oregon may have had greater rates. Before classifying and treating any employee as exempt from overtime, employers should confirm that the employee satisfies all applicable tests for overtime exemption under federal and state laws. Although this logic remains true concerning the federal minimum wage, which has remained $7.25 per hour since July 24, 2009, in recent years more states have taken steps to increase their rates. Generally (Outside Hospitality Wage Order): Beginning on December 31, 2020, employers cannot apply a tip credit, and employees must be paid the full minimum wage (see chart above). Service Employee: An employer must directly pay a service employee at least the hourly Cash Wage (CW), and cannot claim a tip credit that exceeds the hourly Tip Credit rate (TC). On January 1, 2017, the minimum wage will increase in California to $10.50 per hour for employers who employ 26 or more employees. Stat. 13 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. 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. First, we highlight state, counties, and cities where the minimum wage will increase in 2021. Small businesses: $821.40/week ($42,712.80/year) Large businesses: $958.30/week ($49,831.60/year) Note that the some – but not all34 – New York rates will also increase on December 31, 2021, but for this article we focus on the New York rates that will apply every day in 2021 except December 31, 2021. However, currently under state law, employers must pay covered tipped employees a minimum cash wage of $2.35 per hour. July 1, 2020: $35,568 per year ($684.00 per week)** 2. These include: Earlier this year, the state adopted the Colorado Overtime and Minimum Pay Standards Order ("COMPS Order") #36. 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. 31 This includes any rate that would be in effect before the scheduled increase in 2021. To be considered "exempt," these employees must generally satisfy three tests: State Impact: Many states have their own salary and duties tests for determining whether an employee is exempt from overtime under state rules. 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