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Jan03

State announces new rules for overtime pay obligations

LI LogoLabor & Industries announced rule changes that will govern overtime pay obligations by employers beginning on July 1, 2020.
 
Under the changes, the minimum salary a worker must receive to be exempt from overtime will be $35,100 a year, beginning July 1. It will rise to $83,356 in 2028 at the end of the phase-in period. The adopted rules also update a job duties test the state uses to determine if any employee can be exempt from overtime pay.
 
After extensive discussion organizations like the WA Retail Association, L&I extended the implementation period two additional years.
 
L&I said it phased in the new eligibility rules as an acknowledgment that they will force new costs on many employers. L&I Director Joel Sacks said the department also has an outreach plan to assist businesses through a transition to new rules.
 
Before the state rules take effect, Washington employers will be required to follow new federal overtime rules that take effect on January 1, 2020. The new federal threshold for overtime exemption will be $35,368 on January 1. When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees.