Washington State Proposes Changes to Overtime Rules

The Department of Labor & Industries (L&I) recently proposed changes to Washington State’s overtime rules. Under the proposed changes, the minimum pay a salaried worker must receive to be considered exempt would increase incrementally to 2.5 times the state minimum wage by 2026.

The first increase for most employers would take place July 1, 2020. This increase would raise the minimum salary for exempt employees to $675 a week or about $35,000 per year for small employers (those with 50 or less employees) and $945 a week or about $49,000 per year for large employers (those with over 50 employees). By 2026 the minimum salary for exempt employees would rise to $1,536 a week or about $80,000 per year for all employers. Here is a summary of the proposed yearly increases:

  • July 1, 2020: $675 per week for small employers and $945 per week for large employers
  • January 1, 2021: $965 per week for small employers and $1,103 per week for large employers
  • January 1, 2022: $1,127 per week for small employers and $1,268 per week for large employers
  • January 1, 2023: $1,296 per week for small and large employers
  • January 1, 2024: $1,324 per week for small and large employers
  • January 1, 2025: $1,353 per week for small employers and $1,503 for large employers
  • January 1, 2026: $1,536 per week for all employers

L&I’s proposed rule changes also include revisions to the job duties tests for the executive, administrative, professional, and outside salesperson exemptions.

A complete draft of the rules is available here. L&I is accepting comments on the rules until 5 p.m. on September 6, 2019.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s