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Reminder—New Minimum Salary for Exempt Employees
Starting January 1, 2020, most employees who are classified as exempt under the executive, administrative, professional, and computer employee exemptions will need to be paid at least $684 per week or $35,568 per year. See our full report in the News Desk of the HR Support Center for more information.
The Department of Labor has announced the new minimum salary for certain exempt white collar employees. The final rule is very close to the proposed rule we reported on in March. The new minimums will take effect January 1, 2020.
The 9th Circuit Court of Appeals ruled Monday that salary history is not an acceptable reason for pay differences under the Equal Pay Act (EPA), even when used in conjunction with other factors. The EPA first became law in 1963 and prohibits the payment of different wages to men and women who do work that requires equal skill, effort, and responsibility under similar working conditions.
Last Friday the Department of Labor (DOL) adopted a new test for unpaid interns. Employers should use this test—called the primary beneficiary test—when determining if a worker can be properly classified as an unpaid intern or if they need to be classified as an employee and paid minimum wage and overtime. The test adopted by the DOL has already been in use in four federal appellate courts, most recently the Ninth Circuit Court of Appeals. The DOL’s switch to the primary beneficiary test creates a nationwide standard.
The minimum wage for federal contractors will increase to $10.35 per hour as of January 1, 2018. The wage requirement applies to new and replacement contracts (solicited on or after January 1, 2015) with employers covered by the Service Contract Act or any employer who handles concessions and services in connection with federal property or lands. We recommend that employers review the pay rates of their employees and plan any changes necessary to comply with the rate increase. Questions? Drop us a line.
For your convenience, we've posted the 2018 minimum wage rates. States seeing big increases include California, Maine, Maryland and New York. Rates vary in many states according to factors like job location (e.g., city vs. state), business size and benefits status. Questions? Contact us anytime.