Updates to Washington Overtime Rules

Today, L&I announced updates to Washington’s overtime rules that go into effect July 1, 2020. But remember, beginning on January 1, 2020, Washington employers who are covered by the FLSA (basically everyone) will have to comply with the new federal overtime rule which increases the minimum salary for exempt employees to $684 per week.

L&I summarizes the updates to Washington’s overtime rules as follows:

The new rules use a formula based on the state minimum wage to determine the minimum salary a worker must receive to be exempt from overtime. The changes will be phased in starting July 1, 2020, and will be fully implemented by January 2028.

Beginning July 1, the state minimum salary threshold will increase to $675 a week ($35,100 a year) for all businesses, which is 1.25 times the state’s minimum wage. The threshold will increase incrementally until 2028 when it is expected to reach approximately $1,603 a week (about $83,356 a year) for an overtime exempt worker, 2.5 times the minimum wage.

Based on this schedule, Washington’s minimum salary will exceed the federal minimum salary for exempt employees on January 1, 2021.

Washington has also updated the job duties tests for exempt employees.  We will post about those changes shortly.

A summary of the new rule, a salary threshold implementation schedule, and a link to the updated rule can be found here: https://www.lni.wa.gov/workers-rights/wages/overtime/changes-to-overtime-rules

 

 

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