State and local governments around the country continue to institute increases to the minimum wage. Many of these increases go into effect in the New Year. Employers should take note of the changes listed below and check for any other adjustments affecting their workforce, particularly in smaller localities which may not be captured here. Note that the federal minimum wage remains at $7.25 for 2020.
As noted in last month’s The Month in Wage and Hour, a new Department of Labor will raise the minimum salary for exempt workers to $35,568 on January 1, 2020. The following states and localities are making similar changes:
- In New York State, the minimum salary that administrative and executive employees must make to remain exempt from overtime will increase to $885/week ($46,020 annually). In Nassau, Suffolk, and Westchester Counties, the minimum salary that these employees must receive to remain exempt from overtime will increase to $975/week ($50,700 annually). And in New York City, these employees must make $1,125/week ($58,500 annually) to remain exempt, as of January 1, 2020.
- In California, in order to qualify for a white collar overtime exemption, employees must earn two times the state minimum wage for “full time employment” – meaning that on January 1, 2020, employees of small employers (25 or fewer employees) must earn $960/week ($49,920 annually) and employees of large employers (26 or more employees) must earn $1,40/week ($54,080 annually). Further, effective January 1, 2020, exempt computer professionals must earn $46.55 per hour, or $8,080.71 per month, or $96,968.33 per year.
- Alaska also requires employees to earn two times the state minimum wage to meet the minimum salary threshold test for white collar exemptions. Effective January 1, 2020, the minimum salary threshold will increase to $815.20/week ($42,390.40 annually).
- Pennsylvania was poised to make a similar change, but the state Department of Labor and Industry formally withdrew its proposal in late November.