New Rule May Affect Who Gets Overtime Pay

Washington State’s Department of Labor & Industries (L&I) has issued it’s official overtime pay proposalIn short, L&I is proposing to raise the overtime pay threshold (the minimum below which employees must be paid overtime for over 40 hours of work in a week) to 2.5x the minimum wage by 2026. This equates to a threshold annual salary of over $70,000. We know many nonprofits will be affected by this proposed rule, so we are committed to keeping you informed and we encourage you to provide input during the next round of hearings.

The new threshold will be phased in beginning in July 1, 2020 and incrementally increase to the 2.5x level by 2026. The proposed threshold increases are pictured in the tables below.

When reviewing the proposal and fact sheet, please note: 

  • There are different phase-in schedules proposed for employers of less than 50 people and more than 50 people. 
  • L&I is using a weekly measurement of pay to calculate the threshold, rather than an annual salary. To arrive at the annual salary for employees, multiply the weekly threshold amount by 52, like this: Threshold x 52 Weeks = Annual Salary
  • The proposed increases are tied to a multiplier of the minimum wage. This means that once the phase-in is complete, the threshold will automatically rise each year based on the Consumer Price Index. 
  • Employees earning under the weekly salary threshold will be entitled to overtime pay if they work above 40 hours in a week, regardless of whether they meet the duties test for executive, administrative, and professional workers. 

Click here to download and view the salary tables

Next Steps
1. Please join us for an overtime pay briefing and discussion for Tuesday, June 25, 2019. The purpose of the call is to explain the proposal, hear your thoughts, and capture feedback and/or questions that we can convey to the Department of Labor & Industries. Click here to register for the call. You can also arrange a phone call or reply to this email if you would rather discuss the proposal outside of the call.   

2. L&I will be holding public hearings on its proposal in July and August. Hearings are currently scheduled in Tumwater, Seattle, Bellingham, Ellensburg, Kennewick, and Spokane. Click here to view the latest hearing details. If a hearing is in your area, please plan to attend. 

3. L&I will be accepting written comments on the proposal. Please consider submitting written comments after you have analyzed what the changes mean for your organization. Comments must be submitted by September 6, 2019 by emailing EAPrules@Lni.wa.gov or faxing comments to 360-902-5300. Additional submission instructions are available in this fact sheet and on L&I’s overtime page.  

What You Can Do

  • Please review this fact sheet and the full proposal.  
  • Start thinking about what the increased salary threshold means for your employees and business model.
  • Please make sure that your membership with Washington Nonprofits is current so that you receive the latest information about the rule making. Please contact our Membership Manager to check your membership or join.  
  • Make sure you and other appropriate people from your organization are signed up for our Public Policy and Advocacy Updates email list. 
  • Watch for updates from us about this.
About David Streeter 53 Articles
David Streeter is Washington Nonprofits’ Director of Public Policy and Advocacy.