State Exempt Employee Minimum Salary Level

Regulatory Changes

Some states have adopted regulations that increase the minimum salary requirement for overtime exemption. These include:

Alaska:

As a result of the change in the minimum wage for 2021, the minimum salary required for the state’s administrative, professional, and executive exemptions will increase to $827.20 per week (or two times the minimum wage for a 40-hour week) on January 1, 2021.

California:

In California, exempt employees must meet certain salary and duties tests and must be paid at least twice the state minimum hourly wage based on a 40-hour week. The state's minimum wage is scheduled to increase on January 1, 2021 and varies based on size of the employer. For the administrative, professional, and executive exemptions under state law, employers with 26 or more employees must pay a salary of at least $1,120 per week beginning January 1, 2021. Employers with fewer than 26 employees must pay a minimum salary of at least $1,040 in 2021.

Effective January 1, 2021, the minimum pay for overtime-exempt computer professionals and physicians and surgeons paid an hourly rate in California increases per an annual inflation adjustment required by state statute.

• The minimum annual salary for computer professionals paid on a salary basis increases from $96,968.33 to $98,907.70.
• The minimum monthly salary for computer professionals paid on a salary basis increases from $8,080.71 to $8,242.32.
• The minimum hourly rate of pay for computer professionals paid an hourly rate increases from $46.55 to $47.48.
• The minimum hourly rate of pay for physicians and surgeons paid an hourly rate increases from $84.79 to $86.49.

Colorado:

Earlier this year, the state adopted the Colorado Overtime and Minimum Pay Standards Order ("COMPS Order") #36. Learn more here. Among other things, COMPS Order #36 expands the industries covered by the order as well as increases the minimum salary required to be considered exempt under state law. On January 1, 2021, the minimum salary required to qualify for the executive/supervisor, administrative, and professional exemptions under state law increases to $778.85 per week.

Maine:

As a result of the change in the state's minimum wage, the minimum salary required for an employee exempt from overtime pay under state law will increase to $700.97 per week, or $36,450 per year on January 1, 2021.

New York (December 31, 2020):

To be classified as exempt from New York's overtime requirements, executive and administrative employees must meet minimum salary requirements and satisfy certain duties tests. The minimum salary required for the executive and administrative exemptions will increase on December 31, 2020 as follows:

• Nassau, Suffolk, and Westchester Counties: $1,050 per week
• Remainder of State (except New York City which remains $1,125 per week): $937.50 per week

Pennsylvania:

Earlier this year, Pennsylvania adopted a new rule that increases the minimum salary required for the states' executive, administrative, and professional exemptions to $780 per week, effective October 3, 2021.

Washington:

Earlier this year, the state of Washington published a final rule that updates the criteria for determining which workers are exempt from overtime under state law. Effective January 1, 2021, the rule increases the minimum salary required for the executive, administrative, and professional exemptions under state law as follows:

• Employers with 50 or Fewer Employees: $821.40 per week
• Employers with 51 or More Employees: $958.30 per week

Exempt computer professionals who are paid by the hour is as follows January 1, 2021:

• Employers with 50 or Fewer Employees: $37.65 per hour
• Employers with 51 or More Employees: $47.92 per hour

For Other State Minimum Wage Updates:

Click here to see other state minimum wage updates (non-exempt employees) that were noted in the November issue of FranklyHR.