What is an exempt employee in Washington state?
What is an exempt employee in Washington state?
Under Washington state wage and hour laws, individuals employed in a bona fide administrative, executive, or professional capacity and who pass the salary level test are exempt from the overtime provisions of the law.
What is the difference between paying an employee as an exempt employee vs a non exempt employee what are the potential risks and the rewards for the employer?
The primary difference between exempt and nonexempt employees relates to employment status. Stated simply, if you’re exempt, then you’re not entitled to receive any compensation for overtime hours that you work; nonexempt employees, on the other hand, are entitled to receive overtime pay.
Is it better to be exempt or non exempt?
When you hire exempt employees, you won’t pay overtime no matter how many hours these employees work per week. Exempt employees’ salaries do not change based on how much time they work. Conversely, you often have to pay nonexempt employees 1.5 times their usual pay rates when they work more than 40 hours in a week.
What is the minimum salary for an exempt employee in Washington state?
2022 Washington Minimum Wage and Salary Thresholds for Overtime Exempt Workers
| Effective Date | 2025/1/1 | |
|---|---|---|
| Employers with 1-50 Employees | Weekly ($) | 1,233 |
| Annual ($) | 64,116 | |
| Employers with 50+ Employees | Minimum Wage Multiplier | 2.25 |
| Weekly ($) | 1,387 |
Who can be a salaried employee in Washington state?
Employees who do not qualify for an exemption but are paid on a salary basis are considered salaried nonexempt. Employees generally must meet a salary basis, salary level, and duties test to be exempted from the Minimum Wage Act as an executive, administrative or professional employee under RCW 49.46. 010(3)(c).
Who is exempt from overtime Washington state?
For calendar year 2020, the state rule provides that employees with a minimum salary of at least $675 per week and whose duties meet one or more of the “duties tests” are considered exempt from eligibility for overtime pay.
What determines whether an employee is classified as exempt or nonexempt under the FLSA?
Salary level test. Employees who are paid less than $23,600 per year ($455 per week) are nonexempt. (Employees who earn more than $100,000 per year are almost certainly exempt.)
Can an exempt employee be paid hourly?
In addition to being able to receive additional compensation, “white-collar” exempt employees may also be paid on an hourly, daily, or shift basis, without affecting the exemption, as long as certain requirements are met.
What makes a job exempt?
Key Takeaways. An exempt employee is an employee who does not receive overtime pay or qualify for minimum wage. Exempt employees are paid a salary rather than by the hour, and their work is executive or professional in nature.
Who can be a salaried employee Washington state?
How many hours can a salaried employee work in Washington state?
Employers will now have the following choices: Limit hours to keep salaried employees at 40 hours a week. Pay overtime for any work more than 40 hours in a workweek. Raise wages to meet the new threshold and maintain a worker’s overtime-exempt status.
What is the difference between salaried exempt and salaried nonexempt?
Salaried: An individual who receives the same salary from week to week regardless of how many hours he or she works. Exempt employees must be paid on a salary basis, as discussed above. Nonexempt employees may be paid on a salary basis for a fixed number of hours or under the fluctuating workweek method.