Tag Archives: Colorado

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.

Is The Minimum Pay Required For Commissioned Employees To Qualify For An Overtime Exemption Increasing In Your State In 2018?

While the minimum pay required for commissioned employees to qualify for an overtime exemption is not changing in 2018, there are several states where the minimum pay requirements for a “commissioned employee overtime exemption” are increasing.

These increases (i.e. in California, Colorado, Minnesota, Oregon, Washington, and Washington DC) are occurring because the pay an inside or commissioned salesperson must receive to qualify for the inside or “commissioned” sales exemption (as established under state law) are scheduled to increase in 2018 (December 31st for New York employers).

Under the Fair Labor Standards Act (FLSA), in order for a commissioned salesperson to qualify for the FLSA’s 7(i) overtime exception (Commissioned Salesperson Exemption), the following three conditions must be met:

  1. The employee must be employed by a retail or service establishment, and
  2. The employee’s regular rate of pay must exceed one and one-half times the applicable minimum wage for every hour worked in a workweek in which overtime hours are worked, and
  3. More than half the employee’s total earnings in a representative period must consist of commissions.

Unless all three conditions are met, the Commissioned Salesperson Exemption is not applicable, and overtime premium pay must be paid for all hours worked over 40 in a workweek at time and one-half the regular rate of pay.

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. Continue reading Is The Minimum Pay Required For Commissioned Employees To Qualify For An Overtime Exemption Increasing In Your State In 2018?

Check to See if the Minimum Required Salary For Exempt Employees is Increasing In Your State

While the minimum salary requirements for “white collar” employees (executive, administrative, or professional employees) is not changing in 2018 (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 2018 (December 31st 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

Continue reading Check to See if the Minimum Required Salary For Exempt Employees is Increasing In Your State

2018 MINIMUM WAGE CHECK-UP

With various cities and counties having enacted local minimum wages and 18 states (Alaska, Arizona, California, Colorado, Florida, Hawaii, Maine, Michigan, Minnesota, Montana, Missouri, New Jersey, New York*, Ohio, Rhode Island, South Dakota, Vermont, Washington) are 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.

The below chart sets forth the minimum wage effective January 1, 2018.

employer PAYS $1.50/hr towards medical benefits$11.91

Federal $7.25
State City/County  Amount?
Alabama  $7.25
Alaska*  $9.84
Arizona* — all cities/counties except …  $10.50
Flagstaff* $11.00
Arkansas  $8.50
California* — all cities/counties except …                                  small employer (25 or less) $10.50
large employer (26 or more) $11.00
Berkeley  $13.75
Cupertino* $13.50
El Cerrito*  $13.60
Emeryville                                           small employer (55 or less) $14.00
large employer (56 or more) $15.20
Los Altos* $13.50
Los Angeles                                         small employer (25 or less) $10.50
large employer (26 or more) $12.00
Malibu                                                  small employer (25 or less) $10.50
large employer (26 or more) $12.00
Milpitas* $12.00
Mountain View* $15.00
Oakland $12.86
Palo Alto* $13.50
Pasadena                                             small employer (25 or less) $10.50
large employer (26 or more) $12.00
Richmond*                                             employer does NOT pay $1.50/hr towards medical benefits $13.41
employer PAYS $1.50/hr towards medical benefits $11.91
Sacramento*                                      small employer (100 or less) $10.50
large employer (101 or more) $11.00
San Diego $11.50
San Francisco $14.00
San Jose* $13.50
San Leandro $13.00
San Mateo*                                                 For-profit organizations $13.50
Non-profit organizations $12.00
Santa Clara* $13.00
Santa Monica                                       small employer (25 or less) $10.50
large employer (26 or more) $12.00
Sunnyvale* $15.00
Los Angeles County                            small employer (25 or less)

unincorporated areas                            large employer (26 or more)

$10.50

$12.00

Colorado* $10.20
Connecticut $10.10
Delaware $8.25
Florida* $8.25
Georgia $7.25
Hawaii* $10.10
Idaho $7.25
Illinois — all cities/counties except … $8.25
Chicago $11.00
Cook County

(except for the Village of Barrington)

$10.00
Indiana $7.25
Iowa $7.25
Kansas $7.25
Kentucky $7.25
Louisiana $7.25
Maine* — all cities/counties except … $10.00
Portland $10.68
Maryland — all cities/counties except … $9.25
Montgomery County $11.50
Prince George’s County $11.50
Massachusetts $11.00
Michigan* $9.25
Minnesota* — all cities/counties except … “small employers” (employers with an annual sales volume of less than $500,000) $7.87
“large employers” (employers with an annual sales volume of $500,000+) $9.65
Minneapolis                                         large employer (101 or more) $10.00
Mississippi $7.25
Missouri $7.85
Montana* $8.30
Nebraska $9.00
Nevada $8.25
New Hampshire $7.25
New Jersey* $8.60
New Mexico — all cities/counties except … $7.50
Albuquerque*                                             employer provides benefits $7.95
employer does NOT provide benefits $8.95
Las Cruces* $9.45
Santa Fe $11.09
Bernalillo County*unincorporated areas                                             employer provides benefits $7.85
employer does NOT provide benefits $8.85
Santa Fe County unincorporated areas $11.09
New York**  “Upstate” employers (excluding fast food employees) $10.40
“Downstate” employers (excluding fast food employees) $11.00
“Small” NYC employers (excluding fast food employees $12.00
Fast food employees outside NYC $11.75
“Large” NYC employers (excluding fast food employees) $13.00
Fast food employees inside NYC $13.50
North Carolina $7.25
North Dakota $7.25
Ohio* $8.30
Oklahoma $7.25
Oregon — all cities/counties except … $10.25
Portland $11.25
Nonurban Counties 

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

$10.00
Pennsylvania $7.25
Rhode Island* $10.10
South Carolina $7.25
South Dakota* $8.85
Tennessee $7.25
Texas $7.25
Utah $7.25
Vermont* $10.50
Virginia $7.25
Washington* — all cities/counties except … $11.50
City of SeaTac* (hospitality and transportation workers) $15.64
Seattle* $14.00
small employer who does not pay towards medical benefits

(500 or less)

small employer who does pay towards medical benefits

(500 or less)

$11.50
large employer who does not pay towards medical benefits

(501 or more)

$15.00
large employer who does pay towards medical benefits

(501 or more)

$15.45
Tacoma* $12.00
Washington DC $12.50
West Virginia $8.75
Wisconsin $7.25
Wyoming $7.25
 * = increase in minimum wage effective January 1, 2018

** = increase in minimum wage effective December 31, 2017

 

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.

 

 

2016 Election Aftermath – Minimum wage to increase in Arizona, Colorado, Maine, and Washington

Following the 2016 election, voters in Arizona, Colorado, Maine, and Washington approved ballot measures to increase minimum wage in these states starting January 1, 2017.

Minimum wage will increase in these four states in accordance with the following schedule:

Arizona

  • January 1, 2017 — $10.00
  • January 1, 2018 — $10.50
  • January 1, 2019 — $11.00
  • January 1, 2020 — $12.00
  • January 1, 2021 – minimum wage will adjust for inflation

Colorado

  • January 1, 2017 — $9.30
  • January 1, 2018 — $10.20
  • January 1, 2019 — $11.10
  • January 1, 2020 — $12.00
  • January 1, 2021 – minimum wage will adjust for inflation

Maine

  • January 1, 2017 — $9.00
  • January 1, 2018 — $10.00
  • January 1, 2019 — $11.00
  • January 1, 2020 — $12.00
  • January 1, 2021 – minimum wage will adjust for inflation

Washington

  • January 1, 2017 — $11.00
  • January 1, 2018 — $11.50
  • January 1, 2019 — $12.00
  • January 1, 2020 — $13.50
  • January 1, 2021 – minimum wage will adjust for inflation

It is recommended that employers in these states prepare for these minimum wage increases.

DOL Partnership regarding worker misclassification — 34 States and Counting

Thirty-five states have agreed to “team up” with the US Department of Labor to investigate worker misclassification. Is your state one of them?

In 2015, Department of Labor launched an initiative to combat the misclassification of employees as independent contractors. As a part of this initiative, the Department of Labor sought to partner with the state agencies and agree to share information and conduct joint investigations regarding independent contractor misclassification. To date, 35 states have entered into a memorandum of understanding regarding worker misclassification issues.

These states are:

  • Alabama
  • Alaska
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Florida
  • Hawaii
  • Idaho
  • Illinois
  • Iowa
  • Kentucky
  • Louisiana
  • Maryland
  • Massachusetts
  • Minnesota
  • Missouri
  • Montana
  • Nebraska
  • New Hampshire
  • New Mexico
  • New York
  • North Carolina
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Dakota
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • Wisconsin
  • Wyoming

What does this mean for employers in these states?

Employers in the above-listed states should expect collaborative efforts between their state agencies and the Department of Labor during a investigation into potential employee misclassification as the state and the Department of Labor will share information. This could lead to simultaneous, multi-agency investigations into worker classification. It is recommended that companies have qualified legal counsel review any existing independent contractor arrangements. In addition, before entering into an independent contractor relationship, speak with an HR Professional or qualified legal counsel to verify that the worker truly is an independent contractor.

Duplication of Effort No Longer Required for Worker Verification in Colorado

Since 2006, in addition to completing the federal I-9 form, Colorado employers have been required to complete and maintain worker verification affidavits to ensure that workers were eligible to be employed in the United States. This additional step has been eliminated.

Colorado Governor John Hickenlooper recently signed House Bill 16-1114 into law. This new law repeals the Colorado requirement for employment verification affirmation. Colorado employers are, however, still required to complete the federal I-9 form.

Coming Soon to Colorado – The Right to Inspect Personnel files

On June 10, 2016, Governor John W. Hickenlooper signed House Bill 16-1432 (“Personnel Files Employee Inspection Right”), into law.  This new law goes into effect on January 1, 2017 and provides certain current and former private-sector employees the right to access and obtain a copy of their personnel files.

Under the new law, “covered” employers are required to allow employees (current and former) to inspect and obtain a copy of their personnel files upon the request of the employee as follows:

  • Current employees must be permitted to inspect and obtain a copy of their personnel files at least once a year, and
  • Former employees must be permitted to inspect and obtain a copy of their personnel files at least once after termination of employment.

Under the new law, a “personnel file” is defined as “the personnel records of an employee…that are used or have been used to determine the employee’s qualifications for employment, promotion, additional compensation, or employment termination, or other disciplinary action.” An employee’s personnel file does not include

  • documents or records required to be maintained in a separate file by federal or state law or rule, e.g., medical records,
  • documents or records pertaining to confidential reports from previous employers of the employee, e.g., job references,
  • documents or records pertaining to an active criminal investigation, an active disciplinary investigation by the employer, or an active investigation by a regulatory agency, or
  • information that identifies an individual who made a confidential accusation, as determined by the employer, against an employee.

 

This new law applies to all Colorado private employers except for financial institutions chartered and supervised under state or federal law.  (In other words, banks, trust companies, savings institutions, and credit unions are not considered covered employers).

The new law does not require employers to maintain personnel files for their employees. Instead, employers who maintain personnel files for their employees are required to grant employees access to those personnel files in accordance with the new law. In addition, an employer may require the employee to pay the reasonable cost for copying documents.

An employee’s review of the file occur at the employer’s place of business at a time convenient to both the employer and employee.  The employee may obtain a copy of the whole personnel file or any part of it. The employer may require that a company representative be present when the employee accesses his personnel file.

Recommended action for employers

In preparation for the new law, covered employers who maintain personnel files on their employees should take the following actions:

  • Create a policy/procedure for personnel file review and train Human Resources personnel on the new policy,
  • Create a separate file(s) for those documents that are not included in the definition of personnel file and
  • Review and review your file retention policies to verify they comply with the new law.

Proposed 1% Increase To Colorado Minimum Wage For 2016

The Colorado Division of Labor recently proposed a 1% increase to Colorado’s minimum wage (currently $8.23 per hour; $5.21 per hour for tipped employees) for 2016.  If this increase is passed, then Colorado’s minimum wage will increase to $8.31 per hour (5.29 per hour for tipped employees)

Article XVIII, Section 15, of the Colorado Constitution requires the Colorado minimum wage to be adjusted annually for inflation, as measured by the Consumer Price Index used for Colorado. Since the Consumer Price Index increased in the past year (August 2014 to August 2015), an increase to Colorado’s minimum wage is warranted for 2016.

While this increase has not been officially approved, Colorado employers will need to insure that their employees are receiving at least the increased minimum wage for 2016 and will need to post the updated minimum wage poster when it is available.

For more information on the proposed increase, please see Proposed Colorado Minimum Wage Order Number 32

Colorado Department Of Labor Clarifies Its Position On “Use-It Or Lose It” Vacation Policies

After recently announcing that “use-it-or-lose-it” vacation pay policies are no longer permitted under Colorado wage and hour laws, the Colorado Department of Labor has issued guidance clarifying that position.

In its online guidance regarding Vacation, the Colorado Department of Labor has clarified that “use-it-or-lose-it” policies are permissible under certain circumstances. Specifically, the Colorado Department of Labor included the following guidance regarding forfeiture of vacation (i.e. “use-it-or-lose-it” vacation policies):

  1. Can employers in Colorado have “use it or lose it” provisions in vacation agreements.
  2. Yes. “Use-it-or-lose-it” policies are permissible under the Colorado Wage Protection Act, provided that any such policy is included in the terms of an agreement between the employer and employee. A “use-it-or-lose-it” policy may not operate to deprive an employee of earned vacation time and/or the wages associated with that time. Any vacation pay that is “earned and determinable” must be paid upon separation of employment. The terms of an agreement between the employer and employee will dictate when vacation pay is “earned.”

What does this mean for Colorado employers?

Essentially, Colorado employers must be extremely careful in drafting their vacation policies if they wish to implement a “use-it-or-lose-it” policy. Not only must the “use-it-or-lose-it” policy be in the form of an agreement with the employee, but the policy will need to clearly define when vacation time is considered earned. This is because the forfeiture portion of the policy can only apply to the vacation time that is not yet “earned and determinable” – as the online guidance makes it clear that vacation time, once “earned” cannot be forfeited.