Category Archives: Wage and Hour

REMINDER – Illinois Business Expense Reimbursement Requirement Begins January 1st

Attention Illinois employers, starting January 1, 2019, all Illinois employers will be required to reimburse employees for “all necessary expenses that are incurred by the employee with the employee’s scope of employment and that are directly related to services performed for the employer.”  We previously reported on this new law in “NEW LAW – Illinois To Require Business Expense Reimbursement.”

In preparing for this new law, it is recommended that employers take note of the wide array of “business-related expenses” that an employee can incur, like

  • Mileage for work-related travel
  • Personal cell phone use for work purposes (including checking work emails)
  • Work-related expenses for remote employees (eg internet access, office supplies)
  • Costs associated with work-related travel (mileage, but also hotels, meals, air fare, parking, etc)

It is recommended that all Illinois employers develop a written business expense reimbursement policy that sets forth the steps an employee must follow to have their business expenses reimbursed.  Remember, employees are not entitled to reimbursement if they fail to follow an established, written expense reimbursement policy.

2019 Minimum Wage Check-Up

With various cities and counties having enacted local minimum wages and 19 states (Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Maine, Massachusetts, Minnesota, Missouri, Montana, New Jersey, New York*, Ohio, Rhode Island, South Dakota, Vermont, and Washington) increasing their own minimum wages on January 1st (December 31st for New York), employers should take time to verify that they are meeting the minimum wage requirements of their state/city/county and prepare for any increases.

The below chart sets forth the minimum wage effective January 1, 2019.

Federal Minimum Wage $7.25

 

State City/County Amount?
Alabama $7.25
Alaska* $9.89
Arizona * all cities/counties except … $11.00
          Flagstaff* $12.00
Arkansas* $9.25
California* — all cities/counties except …                                 small employer (25 or less) $11.00

large employer (26 or more)

$12.00
          Belmont* $13.50
          Berkeley $15.00
          Cupertino* $15.00
          El Cerrito* $15.00
          Emeryville                                                                                                  small employer (55 or less) $15.00

large employer (56 or more)

$15.69
          Los Altos* $15.00
          Los Angeles                                                                                               small employer (25 or less) $12.00

large employer (26 or more)

$13.25
          Malibu                                                                                                         small employer (25 or less) $12.00

large employer (26 or more)

$13.25
          Milpitas $13.50
          Mountain View* $15.65
          Oakland* $13.80
          Palo Alto* $15.00
          Pasadena                                                                                                  small employer (25 or less) $12.00

large employer (26 or more)

$13.25
          Redwood City* $13.50
          Richmond*                                                employer PAYS $1.50/hr towards medical benefits $13.50

employer DOESN’T pay $1.50/hr towards medical benefits

$15.00
          San Diego* $12.00
          San Francisco $15.00
          San Jose* $15.00
          San Leandro $13.00
          San Mateo*                                                                                                 For-profit organizations $15.00

Non-profit organizations

$13.50
          Sacramento                                                                                          small employer (25 or less) $11.00

large employer (26 or more)

$12.00
          Santa Clara* $15.00
          Santa Monica                                                                                          small employer (25 or less) $12.00

large employer (26 or more)

$13.25

All hotels

$16.10
          Sunnyvale* $15.65
          Los Angeles County                                                                             small employer (25 or less)

          unincorporated areas                                                                        large employer (26 or more)

$12.00
$13.25
Colorado* $11.10
Connecticut $10.10
Delaware $8.75
Florida* $8.46
Georgia $7.25
Hawaii $10.10
Idaho $7.25
Illinois — all cities/counties except … $8.25
          Chicago $12.00
          Cook County

          (except for municipalities who have opted out)

$11.00
Indiana $7.25
Iowa $7.25
Kansas $7.25
Kentucky $7.25
Louisiana $7.25
Maine*  $11.00
Maryland — all cities/counties except … $10.10
          Montgomery County*                                                                           small employer (9 or less)

                                                                                   medium employer (10-50)

                                                                               large employer (51 or more)

$12.00

$12.00

$12.25

          Prince George’s County $11.50
Massachusetts* $12.00
Michigan $9.25
Minnesota*all cities except                      “small employers” (annual sales volume of less                                                                                                                                                        than $500,000)

“large employers” (annual sales volume of $500,000+)

$8.04
$9.86
          Minneapolis $11.25
Mississippi $7.25
Missouri* $8.60
Montana* $8.50
Nebraska $9.00
Nevada $8.25
New Hampshire $7.25
New Jersey* $8.85
New Mexico — all cities/counties except … $7.50
          Albuquerque*                                                                                         employer provides benefits $8.20

employer does NOT provide benefits

$9.20
          Las Cruces* $10.10
          Santa Fe $11.40
          Bernalillo County*                                                                              employer provides benefits $8.05
          unincorporated areas                                                      employer does NOT provide benefits $9.05
          Santa Fe County (unincorporated areas) $11.40
New York**  “Upstate” employers (excluding fast food employees) $11.10
“Downstate” employers (excluding fast food employees) $12.00
“Small” NYC employers (excluding fast food employees $13.50
“Large” NYC employers (excluding fast food employees) $15.00
Fast food employees outside NYC $12.75
Fast food employees inside NYC $15.00
North Carolina $7.25
North Dakota $7.25
Ohio* $8.55
Oklahoma $7.25
Oregon — all cities/counties except … $10.75
          Portland $12.00
          Nonurban Counties

          (Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klmath, Lake,           Malheur, Morrow, Sherman, Umatilla, Union, Wallowa Wheeler counties)

$10.50
Pennsylvania $7.25
Rhode Island* $10.50
South Carolina $7.25
South Dakota* $9.10
Tennessee $7.25
Texas $7.25
Utah $7.25
Vermont* $10.78
Virginia $7.25
Washington* all cities/counties except … $12.00
          City of SeaTac*                                                            hospitality and transportation workers $16.09
          Seattle* $15.00

small employer who does not pay towards medical benefits (500 or less)

small employer who does pay towards medical benefits (500 or less)

$12.00

large employer (501 or more)

$16.00
          Tacoma* $12.35
Washington DC $13.25
West Virginia $8.75
Wisconsin $7.25
Wyoming $7.25
* = increase in minimum wage effective January 1, 2019

** = increase in minimum wage effective December 31, 2018

 Caveat: Please be advised that this information  is being provided as a courtesy and that ePlace Solutions, Inc. does not track local laws and ordinances and will not update this information with changes in local laws and ordinances.

 

 

Is The Minimum Required Salary For Exempt Employees Increasing In Your State In 2019?

While the FLSA minimum salary requirements for “white collar” employees (executive, administrative, or professional employees) is not changing in 2019 (at least not until/unless the Department of Labor announces a new Overtime Rule), there are several states where the minimum salary requirements for exempt employees is increasing in 2019 (December 31, 2018 for New York employers).

These increases (i.e. in Alaska, California, Colorado, Maine, New York, and Oregon) are occurring because the minimum exempt salary rates for these employees (as established under state law) are scheduled to increase in 2018 (December 31st for New York employers).

Under the Fair Labor Standards Act (FLSA), the minimum salary requirements for white collar employees is as follows:

Payment Schedule Minimum Salary
Weekly $455
Bi-Weekly $910
Semi-Monthly $985.83
Monthly $1,971.66
Annual $23,660

The below table sets forth the changes to the minimum salary requirements for exempt employees in these states.  In those instances where the state minimum salary requirements are lower than the above-listed FLSA requirements, the higher salary threshold applies for employers who are subject to FLSA in order for employees to qualify for an exemption under the FLSA.

Alaska
Applicable Law: An individual employed in a bona fide executive, administrative, or professional capacity shall be compensated on a salary or fee basis at a rate of not less than two times the state minimum wage for the first 40 hours of employment each week, exclusive of board or lodging that is furnished by the individual’s employer. Alaska Stat. § 23.10.055(b).

 Since Alaska’s minimum wage is increasing to $9.89 per hour starting January 1, 2019, the minimum salary for exempt employees is increasing as follows:

Payment Schedule 2018 Minimum Salary 2019 Minimum Salary
Weekly $787.20 $791.20
Bi-Weekly $1,574.40 $1,582.40
Semi-Monthly $1,705.60 $1,714.27
Monthly $3,411.20 $3,428.53
Annual $40,768 $41,142.40
California
Applicable Law: Overtime-exempt executive, administrative and professional employees must earn a monthly salary equivalent to at least two times the state minimum wage for full-time employment. IWC Wage Orders.

 Since California’s minimum wage is increasing to $11.00 per hour (for employers with 25 or less employees) and $12.00 per hour (for employers with 26 or more employees) starting January 1, 2019, the minimum salary for exempt employees is increasing as follows:

Small Employers (25 or less employees)
Payment Schedule 2018 Minimum Salary 2019 Minimum Salary
Weekly $840 $880
Bi-Weekly $1,680 $1,760
Semi-Monthly $1,820 $1,906.67
Monthly $3,640 $3, 813.34
Annual $43,680 $45,760
Large Employers (26 or more employees)
Payment Schedule 2018 Minimum Salary 2019 Minimum Salary
Weekly $880 $960
Bi-Weekly $1,760 $1,920
Semi-Monthly $1,906.67 $2,080
Monthly $3,813.34 $4,160
Annual $45,760 $49,920
Colorado**
Applicable Law: Exempt executive/supervisory employees must be a salaried employee earning in excess of the equivalent of the minimum wage for all hours the employee worked in a workweek. Colorado Minimum Wage Order.

Note: The administrative and professional exemptions only require that an employee be a “salaried individual” and does not provide a minimum salary requirement.

 Since Colorado’s minimum wage is increasing to $11.10 per hour starting January 1, 2019, the minimum salary for exempt executive/supervisory employees is increasing as follows:

Payment Schedule 2018 Minimum Salary* 2019 Minimum Salary*
Weekly $408 $444
Bi-Weekly $816 $888
Semi-Monthly $884 $962
Monthly $1,768 $1,924
Annual $21,216 $23,088
* These numbers are based on the employee working 40 hours per week.  If the employee works more than 40 hours per week, the required pay will be greater.
** In order for an executive employee to meet the minimum salary requirement under the FLSA, the employee will need to be paid the FLSA minimum salary.  However, once that employee works over 41 hours in a week, the state minimum wage salary requirement will apply.
Maine
Applicable Law: The minimum salary requirement to qualify for an executive, professional or administrative exemption is 3,000 times the Maine minimum hourly wage or the minimum salary required by the federal Fair Labor Standards Act, whichever is higher. 26 M.R.S 663(3)(K).

 Currently, the state threshold is higher than the FLSA threshold; therefore, the state threshold applies.

Since Maine’s minimum wage is increasing to $11.00 per hour starting January 1, 2019, the minimum salary for exempt employees is increasing as follows:

Payment Schedule 2018 Minimum Salary 2019 Minimum Salary
Weekly $576.92 $634.61
Bi-Weekly $1,153.84 $1, 269.23
Semi-Monthly $1,250 $1,375
Monthly $2,500 $2,750
Annual $30,000 $33,000
New York – INCREASES 12/31/2018
Applicable Law: Exempt executive and administrative employees must be paid at least the minimum salary set forth in the applicable New York Wage Orders.

 Note: There is no salary basis test for professional employees under New York law.

Under the amendments to the New York Wage Orders, the minimum salary for exempt executive and administrative employees is increasing on December 31, 2018 as follows:

New York City (11 or More Employees)
Payment Schedule Current Minimum Salary Minimum Salary On 12/31/18
Weekly $975 $1,125
Bi-Weekly $1,950 $2,250
Semi-Monthly $2,112.50 $2,437.50
Monthly $4,225 $4,875
Annual $50,700 $58,500
New York City (10 or Fewer Employees)
Payment Schedule Current Minimum Salary Minimum Salary On 12/31/18
Weekly $900 $1,012.50
Bi-Weekly $1,800 $2,025
Semi-Monthly $1,950 $2,193.75
Monthly $3,900 $4,387.50
Annual $46,800 $52,650
Nassau, Suffolk & Westchester Counties
Payment Schedule Current Minimum Salary Minimum Salary On 12/31/18
Weekly $825 $900
Bi-Weekly $1,650 $1,800
Semi-Monthly $1,787.50 $1,950
Monthly $3,575 $3,900
Annual $42,900 $46,800
Remainder of State
Payment Schedule Current Minimum Salary Minimum Salary On 12/31/18
Weekly $780 $832
Bi-Weekly $1,560 $1,664
Semi-Monthly $1,690 $1,802.67
Monthly $3,380 $3,605.34
Annual $40,560 $43,264
Oregon*  – INCREASES 7/1/2019
Applicable Law: The minimum salary requirement to qualify for an executive, professional or administrative exemption is the applicable minimum wage multiplied by 2,080 hours per year and then divided by 12 months. Or. Rev. Stat. § 653.010(9).

 Since Oregon’s minimum wage is increasing to $11.00 per hour (for employers in “nonurban counties”), $12.50 per hour (for employers in the Portland metropolitan area), and $11.25 per hour (for the remainder of the state) starting July 1, 2019, the minimum salary for exempt employees will be increasing as follows:

Nonurban Counties (Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler counties)
Payment Schedule Current Minimum Salary Minimum Salary On 7/1/19
Weekly $420 $440
Bi-Weekly $840 $880
Semi-Monthly $910 $953.34
Monthly $1,820 $1,906.67
Annual $21,840 $22,880
Portland Metropolitan Area
Payment Schedule Current Minimum Salary Minimum Salary On 7/1/19
Weekly $450 $500
Bi-Weekly $900 $1,000
Semi-Monthly $975 $1, 083.34
Monthly $1,950 $2, 166.67
Annual $23,400 $26,000
Remainder of the State
Payment Schedule Current Minimum Salary Minimum Salary On 7/1/19
Weekly $430 $450
Bi-Weekly $860 $900
Semi-Monthly $931.67 $975
Monthly $1,863.33 $1,950
Annual $22,360 $23,400
NOTE:  Currently, only employers in the Portland metropolitan area must pay the state salary in order for to qualify for an executive, professional or administrative exemption.  All other employers in Oregon must pay the FLSA minimum salary in order for to qualify for an executive, professional or administrative exemption.

While not increasing, the minimum salary requirements to qualify for an executive, professional or administrative exemption is higher than the FLSA threshold in the following states:

Connecticut
Applicable Law: The minimum salary requirement to qualify for an executive, professional or administrative exemption is $475 per week. Regs., Conn. State Agencies § 31-60-14.
Payment Schedule Current Minimum Salary
Weekly $475
Bi-Weekly $950
Semi-Monthly $1,029.17
Monthly $2,058.33
Annual $24,700
Iowa
Applicable Law: The minimum salary requirement to qualify as a “high-salaried” executive, professional or administrative employee (and qualify for an exemption from overtime if the duties test is also met) is $500 per week. 875 Iowa Admin. Code 218.1-218.3.
Payment Schedule Current Minimum Salary
Weekly $500
Bi-Weekly $1,000
Semi-Monthly $1,083.34
Monthly $2,166.67
Annual $26,000

Recommendation for Employers

It is recommended that employers in these states verify that their exempt employees are receiving at least the minimum salary requirement to qualify for the exemption.

Also, please remember that meeting the salary requirement is just one element needed to qualify for an exemption from overtime.  The employee in question must also meet the duties test and the salary basis test.

NEW RULE: DOL Eliminates “80/20” Tip Credit Rule

On November 8, 2018, the US Department of Labor issued a new Opinion letter (Opinion Letter FLSA 2018-27) wherein the DOL rescinded the 80/20 tip credit rule.  Under this rule, employers were not able to use the tip credit for tipped employees who spend more than 20% of their time performing allegedly non-tip generating duties.

In lieu of this rule, the DOL has stated that ““We do not intend to place a limitation on the amount of duties related to a tip-producing occupation that may be performed, so long as they are performed contemporaneously with direct customer-service duties and all other requirements of the Act are met.”

NEW LAW: Missouri Voters Approve Increase of Minimum Wage

Attention Missouri employers:  On November 6, 2018, Missouri voters approved Proposition B: The $12 Minimum Wage Initiative.

As a result of this victory, Missouri’s minimum wage will gradually increase by 85 cents per year until it reaches $12.00 per hour in 2023.  Since Missouri law allows employers to claim a tip credit of 50% of the minimum wage, the minimum wage for tipped employees will also change.

The exact scheduled increases are as follows:

  • January 1, 2019 — increases to $8.60 per hour ($4.30 per hour for tipped employees)
  • January 1, 2020 — increases to $9.45 per hour ($4.725 per hour for tipped employees)
  • January 1, 2021 — increases to $10.30 per hour  ($5.15 per hour for tipped employees)
  • January 1, 2022 — increases to $11.15 per hour  ($5.575 per hour for tipped employees)
  • January 1, 2023 — increases to $12.00 per hour. ($6.00 per hour for tipped employees)
  • January 1, 2024 and beyond — the minimum wage will increase each year based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers.

All Missouri employers should prepare for this increase.

NEW LAW: Arkansas Voters Approve Increase of Minimum Wage

Attention Arkansas employers:  On November 6, 2018, Arkansas voters approved Arkansas Issue 5, Minimum Wage Increase Initiative.

As a result of this victory, Araknsas’ minimum wage will gradually increase until it reaches $11.00 per hour in 2021.  The tipped employee minimum wage ($2.63 per hour) will not change.

The exact scheduled increases are as follows:

  • January 1, 2019 — increases to $9.25 per hour
  • January 1, 2020 — increases to $10.00 per hour
  • January 1, 2021 — increases to $11.00 per hour.

All Arkansas employers should prepare for this increase.

NEW LAW — Minimum Wage Increases for Certain New Mexico Localities

Attention employers in Albuquerque and Unincorporated Bernalillo County, New Mexico:… minimum wage in these localities is increasing on January 1, 2019.

For employers in Albuquerque, minimum wage is increasing on January 1, 2019 as follows:

  • For employers that provide a certain amount of healthcare and/or childcare benefits, minimum wage is  increasing from $7.95 to $8.20 per hour (and is increasing from  $5.35 to $5.50 per hour for tipped employees) and
  • For employees not provided qualifying benefits, minimum wage is  increasing from $8.95 to $9.20 per hour (and is increasing from  $5.35 to $5.50 per hour for tipped employees).

Continue reading NEW LAW — Minimum Wage Increases for Certain New Mexico Localities

NEW LAW — Minimum Wage Increases for Certain California Cities

Attention employers in Mountain View and Sunnyvale, California … minimum wage in these cities is increasing on January 1, 2019.

For employers in both Mountain View and Sunnyvale,  minimum wage is increasing from $15.00 to $15.65 per hour on January 1, 2019.

Employers in these cities should prepare for the increase and download the update minimum wage poster available here:

NEW LAW – Washington DC Elimination of Tip Credit Repealed

Back in June 2018, Washington DC voters passed Initiative 77, which was intended to gradually eliminate the “tipped employee minimum wage” (or tip credit) by 2026.  That Initiative has officially been repealed.

Earlier this month, the D.C. Council passed a measure to overturn and repeal Initiative 77.  This means that employers in Washington DC will be able to continue paying their tipped employees a lower minimum wage than regular hourly workers.

Currently the tipped minimum wage in Washington DC is $3.89 per hour.  This minimum wage is slated to increase as follows: Continue reading NEW LAW – Washington DC Elimination of Tip Credit Repealed

NEW LAW: Alaska’s Minimum Wage to Increase January 1, 2019

Alaska employers, mark your calendars.  On January 1, 2019, Alaska’s minimum wage will increase from $9.84 per hour to $9.89 per hour.

Under the Alaska minimum wage law, the Alaska minimum wage must be adjusted on an annual to account for inflation.  This adjustment is made using the Consumer Price Index (CPI) for the proceeding January-December calendar year.