Tag Archives: Iowa

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.

Iowa “Relaxes” Drug and Alcohol Testing

As many employers in Iowa know, the state has one of the more detailed and complex laws when it comes to drug and alcohol testing. In fact, Iowa has a reputation for having the toughest drug and alcohol testing statute in the country with policy and training requirements, permissible types of testing, and written notice requirements for positive test results.  However, effective July 1, 2018, Iowa will loosen the reins slightly to give employers more latitude when it comes to alcohol testing.

Iowa Drug and Alcohol Testing

Iowa’s drug and alcohol testing law permits employers to test for a wide-range of purposes including random and unannounced, reasonable suspicion, post-accident, and when an employee seeks to return after completion of rehabilitation.  However, prior to conducting any testing, employers must adopt a comprehensive drug and alcohol testing program.  This program includes: Continue reading Iowa “Relaxes” Drug and Alcohol Testing

New Iowa Law Prohibits Local Municipalities From Enacting Local Minimum Wages

Effective March 30, 2017, Iowa municipalities are prohibited from adopting any ordinance providing for terms or conditions of employment (eg minimum or living wages, employment leave, hiring practices, employment benefits and scheduling practices) that exceeds or conflicts with state or federal laws.  This change is the result of House File 295.

This new law affects all counties with minimum wage laws, including Johnson, Polk, Linn and Wapello counties (all of whom recently passed their own minimum wage laws).  This new law nullifies those local minimum wage laws.

While this new law creates a uniform minimum wage (currently $7.25) for the state of Iowa, employers in Johnson, Polk, Linn and Wapello counties (who already complied with the higher minimum wage rates) are left with the decision to keep or retract the increased minimum wages for their employees.

2017 Minimum Wage Increases — Cities and Counties

In an earlier article (“State Minimum Wage Increases for 2017“), we provided a breakdown of the increases to State minimum wage that are going into effect on January 1, 2017 (December 31, 2016 for New York).

In addition to these minimum wage increases, several cities (and some counties) have their own “local minimum wages” which are also increasing in the new year.

Minimum Wage as of November 21, 2016 Scheduled Increase for January 1, 2017
Arizona Cities
Flagstaff $8.05 No increase 1/1/17        To increase 7/1/17 — $12.00
California Cities/Counties
County of Los Angeles $10.00 No increase 1/1/17         To increase 7/1/17 — $10.50
small employer (25 or less)
large employer (26 or more) $10.50 No increase 1/1/17         To increase 7/1/17 — $12.00
County/City of San Francisco $13.00 No increase 1/1/17 To increase 7/1/17 — $14.00
Berkeley Alameda County $12.53 No increase 1/1/17 To increase 10/1/17 — $13.75
Cupertino Santa Clara County $10.00 $12.00
El Cerrito Contra Costa County $11.60 $12.25
Emeryville Alameda County $13.00 No increase 1/1/17        To increase 7/1/17 — $14.00
small employer (55 or less)
large employer (56 or more) $14.82 No increase 1/1/17      May increase 7/1/17 based on CPI
Long Beach LA County $10.00 No increase 1/1/17        To increase 7/1/17 — $10.50
small employer (25 or less)
large employer (26 or more) $10.50 No increase 1/1/17 To increase 7/1/17 — $12.00
Los Altos Santa Clara County $10.00 $12.00
Los Angeles LA County $10.00 No increase 1/1/17        To increase 7/1/17 — $10.50
small employer (25 or less)
large employer (26 or more) $10.50 No increase 1/1/17        To increase 7/1/17 — $12.00
Mailbu Los Angeles County $10.00 No increase 1/1/17        To increase 7/1/17 — $10.50
small employer (25 or less)
large employer (26 or more) $10.50 No increase 1/1/17        To increase 7/1/17 — $12.00
Mountain View Santa Clara County $11.00 $13.00
Oakland Alameda County $12.55 No increase 1/1/17
Palo Alto Santa Clara County $11.00 No increase 1/1/17
Pasadena LA County $10.00 No increase 1/1/17        To increase 7/1/17 — $10.50
small employer (25 or less)
large employer (26 or more) $10.50 No increase 1/1/17        To increase 7/1/17 — $12.00
Richmond Contra Costa County $11.52 $12.30
San Diego San Diego County $10.50 $11.50
San Jose Santa Clara County $10.30 No increase 1/1/17
small employer (25 or less)
large employer (101 or more) $10.30 $10.50
San Leandro Alameda County $10.00 No increase 1/1/17        To increase 7/1/17 — $12.00
San Mateo San Mateo County $10.00 $12.00
For profit companies
small Non profit companies (25 or less) $10.00 No increase 1/1/17
large Non profit companies (26 or more $10.00 $10.50
Santa Clara Santa Clara County $11.00 No increase 1/1/17
Santa Monica LA County $10.00 No increase 1/1/17        To increase 7/1/17 — $10.50
small employer (25 or less)
large employer (26 or more) $10.50 No increase 1/1/17        To increase 7/1/17 — $12.00
Sacramento Sacramento County $10.00 No increase 1/1/17         To increase 1/1/18 — $10.50
small employer (25 or less)
large employer (26 or more) $10.00 $10.50
Sunnyvale Santa Clara County $11.00 $13.00
Illinois Cities/Counties
Cook County $8.25 No increase 1/1/17        To increase 7/1/17 — $10.00
Chicago $10.50 No increase 1/1/17        To increase 7/1/17 — $11.00
Iowa Counties
Johnson County $9.15 $10.10
Linn County $7.25 $8.25
Polk County $7.25 No increase 1/1/17        To increase 4/1/17 — $8.75
Wapello County $7.25 $8.20
Maine Cities
Bangor $7.50 $9.00
Portland $10.10 $10.68
Maryland Counties
Montgomery County $10.75 No increase 1/1/17        To increase 10/1/17 — $11.50
Prince George’s County $10.75 No increase 1/1/17        To increase 10/1/17 — $11.50
New Mexico Cities/Counties
Bernalillo County $8.65 No increase 1/1/17
Santa Fe County $10.91 No increase 1/1/17
Albuquerque $8.75 No increase 1/1/17
Las Cruces $8.40 $9.20
Santa Fe $10.91 No increase 1/1/17
New York Cities/Counties
“Upstate” employers (excluding fast food employers) $9.00 for all employees but fast food employees $9.70
“Upstate” Fast Food employers $9.75 for fast food employees only $10.75
“Downstate” employers (excluding fast food employers) $9.00 for all employees but fast food employees $10.00
“Downstate” Fast Food employers $9.75 for fast food employees only $10.75
New York City “small” employers (excluding fast food employers) $9.00 for all employees but fast food employees $10.50
New York City “large” employers (excluding fast food employers) $9.00 for all employees but fast food employees $11.00
New York City Fast Food employers $9.75 for fast food employees only $12.00
~ “Upstate” = employers in all counties “upstate” from the greater NYC area              ~ “Downstate” = employers in Nassau, Suffolk and Westchester Counties                    ~ “Small” NYC employers = employers with 10 or fewer employees                            ~ “Large” NYC employers = employers with 11 or more employees
Oregon Cities/Counties
Nonurban Counties
(Baker, Coos, Crook, Curry, Douglas, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa Wheeler counties)
$9.50 No increase 1/1/17        To increase 7/1/17 — $10.00
Portland $9.75 No increase 1/1/17        To increase 7/1/17 — $11.25
Washington Cities
City of SeaTac (hospitality and transportation workers) $15.00 No increase 1/1/17
Seattle
small employer (500 or less) $12.00 $13.00
large employer (501 or more) $13.00 $15.00
Tacoma $10.35 $11.15

Recommendation for Employers

It is recommended that employers in the above-listed cities/counties prepare for these minimum wage increases.  In addition, if your city/county is not listed on this chart, we recommend that you check with your local Chamber of Commerce to determine the minimum wage in your city.

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.

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.