As we enter 2019, it is important for businesses and employees alike to understand the current pay agreement landscape. This includes knowing the minimum wage rates, changes in overtime laws, and any potential increases in the salary threshold for exempt employees.
One of the most significant changes in the pay agreement landscape is the increase in minimum wage rates in various states across the United States. As of January 1st, 2019, the minimum wage in California increased to $12 per hour for businesses with 26 or more employees and $11 per hour for businesses with 25 or fewer employees. Additionally, New York`s minimum wage increased to $15 per hour in New York City, $13.50 in Westchester County, and $12 in the rest of the state. These wage increases are set to help struggling workers keep up with rising living costs.
Another important change in 2019 is proposed changes to overtime laws. Currently, employees that make less than $455 per week (approximately $23,660 annually) are eligible for overtime pay when they work over 40 hours in a week. However, the Department of Labor has proposed raising this salary threshold to $679 per week (approximately $35,308 annually) by 2020. This means that employees who make more than $455 per week but less than $679 per week will be eligible for overtime pay if they work over 40 hours in a week.
Lastly, there may be potential increases to the salary threshold for exempt employees. Exempt employees are those who are exempt from overtime pay requirements because they are salaried and perform executive, administrative, or professional duties. The current threshold for exempt employees is $23,660 annually. However, there have been proposals to increase this threshold to $50,440 annually, which would expand the number of employees eligible for overtime pay.
Overall, it is important for employers to stay up to date on the latest pay agreement changes in order to comply with federal and state laws. By understanding the changes to minimum wage rates, overtime laws, and salary thresholds, both businesses and employees can ensure a fair and just compensation system in 2019 and beyond.