New FLSA Standards are not enough for Washington!

Good morning, Ladies and Gentlemen. Welcome to the people processes podcast where we dive deep into the tools, laws and policies that you need to scale and grow your people processes. I'm your host, Rhamy Alejeal and I'm the CEO of people processes. My company helps organizations all across the USA streamline, optimize, implement, and revolutionize their HR operations. We've helped hundreds of companies and thousands of HR leaders across the world get their people processes right. Today, we're going to take a look at the FLSA requirements coming in 2020. Specifically, we're going to talk about how some of the States are reacting, especially Washington and California. Before we go too deep though, I want to ask you to please subscribe to our podcast. You can find us on iTunes, Google podcasts, Spotify, Stitcher, pretty much any podcaster of your choice. You can also subscribe at peopleprocesses.com which gives you subscriber exclusive content, like our on-boarding checklists, our peopleprocesses guides, and a special episode every now and then.Now let's dive in first to some rules that Washington has put in place. Washington state that, adjust the salary threshold and job duties tests for white collar workers. Now I know we're talking about the FLSA on a federal level, so don't tune out if you're not in Washington, but this is a great example of how some of the States are taking it even a step further. So the Washington state department of labor and industries has adopted a rule change to restore overtime protections to tens of thousands of workers and create a fair minimum salary level for workers who do not receive overtime pay, at least according to the Washington state department of labor. The rules affect executive administrative and professional workers as well as outside sales people and computer professionals. That's the white collar workers defined by the FLSA exemptions. The adopted rule changes Amend Washington state legislature code called chapter 296 128 you can look it up on our website. We have some links to it directly. If you want to read it yourself. The new rules use a formula based on the state minimum wage to determine the minimum salary. A worker must be exempt from overtime rather than just a flat dollar figure. That's important because their minimum wage, as you may hear back in one of our seasons, two episodes, is slated to increase every year, I believe until 2028 so it's a heck of a thing. They're going to start July 1, 2020 so coming up in about six months and will be fully implemented by January of 2028 .Starting July 1, 2020 the state minimum salary threshold will increase to 675 week. That's 35,100 a year for all businesses, which is 1.25 times the state's minimum wage.The threshold will increase incrementally until 2028 which is when it will reach approximately $1,603 a week. That's $83,356 a year. For those of you paying attention for an overtime exempt worker, which is 2.5 times the minimum wage. So that's a really high one. By 2028. Now, next year's in July, that $535,100 a year interestingly is lower than the FLSA age changes. The white collar employees generally working in management professional capacity that are paid a set salary have had a change to the FLSA. They exempt levels that go into effect all across the nation starting in 2020 coming right up. Initially Washington employers will be required to follow the federal overtime laws because the updated federal threshold is 684 a week. That's $35,568 a year. Now, if you're in any state in the nation and your paying less than $35,568 a year to an employee starting 2020, they are not FLSA exempt.Now, we talk a lot about FLSA around here because that controls whether you're required to track their hours so that you know you have paid overtime. If they work more than 40 hours in a week...