Washington Seeks Comments on White-Collar Policy Changes

May 4, 2020, 7:28 PM UTC

The Washington Department of Labor and Industries is seeking comments on seven Washington policies tied to white-collar overtime final rules.

The policies are to take to take effect July 1, the department said May 1. An online meeting is to be held May 20 to discuss the updates to each policy, the department said in a news release.

The deadline for comments is June 1.

The policies address how to compute overtime (ES.A.8.2), as well as on policies that address the exemption from Minimum Wage Act Requirements for executive employees (ES.A.9.3), for administrative employees (ES.A.9.4), for professional employees (ES.A.9.5), for computer professional employees (ES.A.9.6), for outside sales representatives (ES.A.9.7), and for white-collar workers (ES.A.9.9).

Recognizing the “limited availability and capacity of many employers and employees to provide meaningful input on the draft policies, due to the unprecedented impacts of the coronavirus,” the department said it would adopt interim policies before the overtime rules take effect July 1.

Employers and business groups are to have another opportunity to provide feedback “when they have more time and attention available to devote to the policy development process,” the department said.

The policies are to set salary thresholds for executive, administrative, professional, computer professional, and outside sales employees to be exempt from overtime requirements as a percentage of the state minimum wage. Two job-duties tests are to be combined to more closely aligns with the federal test.

The salary threshold is to be phased in based on employer size, starting July 1, when the minimum salary level is to rise to $675 a week, or $35,100 a year, which is 1.25 times the state’s minimum wage. On Jan. 1, 2028, the threshold is to reach $1,603 a week, or $83,356 a year, which is 2.5 times the minimum wage. After 2028, the salary threshold is to rise after the minimum wage is increased for inflation.

Comments on the policies may be submitted on the “EAP Exemptions - Draft Administrative Policies” page of the department’s engagement site, or by email to EAPRules@Lni.wa.gov.

To contact the reporter on this story: Christine Pulfrey in Washington at cpulfrey@bloombergtax.com

To contact the editor responsible for this story: Michael Trimarchi at mtrimarchi@bloombergtax.com

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