by
<a href="mailto:candiceb@awcnet.org">Candice Bock</a>, <a href="mailto:brandona@awcnet.org">Brandon Anderson</a> | Jun 16, 2019
The Washington State Department of Labor and Industries (L&I) has formally filed a proposed rule to update the executive, administrative, professional and outside salesperson (EAP) exemptions from Washington’s Minimum Wage Act.
The Washington State Department of Labor and Industries (L&I) has formally filed a proposed rule to update the executive, administrative, professional and outside salesperson (EAP) exemptions from Washington’s Minimum Wage Act. Washington’s Minimum Wage Act, RCW 49.46, establishes minimum wage and overtime requirements for most employers and employees in Washington State. The law provides an overtime exemption for “white collar” salaried workers in EAP positions whose fixed salary meets a minimum specified amount.
Currently the exemption rules require most workers to meet a duties test and be paid a minimum salary of at least $455 per week or the equivalent of about $24,000 a year to qualify. L&I’s new proposed rules would raise this salary threshold beginning on July 1, 2020 to:
- 1.2 x the state minimum wage for employers with 50 or fewer employees ($675 per week or about $35,000 per year); or
- 1.75 x the state minimum wage for employers with 50 or more employees ($945 per week or about $49,000 per year).
The threshold would increase yearly based on a formula that uses the state’s minimum wage. The final phase takes place on January 1, 2026 when the salary threshold would increase to 2.5 times the state minimum wage (about $80,000 per year).
If adopted, changes to these rules will mean some employers will have to provide overtime, minimum wage, and paid sick leave to some employees who were previously considered exempt. In other cases, employers may need to increase salaries for exempt employees.
Along with updating the required salary threshold, the proposed rule would change the method used to determine if an employee is doing work that allows them to be classified as exempt. The state currently uses two "duties tests" to make this determination. Under the proposal, the two tests would be combined into one test, simplifying the process for employers.
With the release of the draft rules, L&I has begun gathering feedback from stakeholders through a formal rulemaking process, including public meetings and a public comment period. More information, including public meeting dates and comment period deadlines, can be found on the Overtime Rulemaking web page. L&I anticipates the new rulemaking will be complete by the end of the year, with the new rules becoming effective July 1, 2020.