Employers should review compensation rates for both exempt and nonexempt employees to ensure compliance with current legal thresholds. Below are rates at the federal level, and for some states and localities, that apply to the most common job categories.
The following minimum compensation rates are effective as of January 1, 2010:
FEDERAL
Nonexempt
$7.25/hour
EXEMPT
Executive
$455/week* on salary basis
Professional or Administrative
$455/week on salary or fee basis
Computer
$27.63/hour (no change from 2009)
Highly Compensated
$100,000 total compensation (including minimum $455 minimum weekly salary or fee)
Licensed practicing medical doctor or attorney; teacher
None
Business Owner (20% minimum equity and engaged in management)
None
Outside sales
None
In the following jurisdictions, higher rates prevail as shown. Not all states are reflected.
ALASKA
Nonexempt
$7.75/hour (after 1/1/10, the minimum wage will be permanently 50 cents higher than the federal standard)
CALIFORNIA
Nonexempt
$8.00/hour
$9.79/hour (San Francisco)
EXEMPT
Executive, professional or administrative
$2,773.33/month on salary basis
Computer
$37.94/hour, $6,587.50/month or $79,050/year
Licensed Physician
$69.13/hour
COLORADO
Nonexempt
$7.24/hour (decrease from 2009)
CONNECTICUT
Nonexempt
$8.25/hour
ILLINOIS
Nonexempt
Effective July 1, 2010, new state minimum wage is $8.25/hour.
However, employers may pay new employees (first 90 days of employment) and employees under the age of 18 up to 50 cents less.
KANSAS
Nonexempt
$7.25/hour
$4.25/hour for employees under the age of 20
MAINE
Nonexempt
$7.50/hour
MASSACHUSETTS
Nonexempt
$8.00/hour
NEW YORK
Nonexempt
$7.25/hour
WASHINGTON, DC
Nonexempt
$8.25/hour
WASHINGTON STATE
Nonexempt
$8.55/hour
Outside Sales Exemption
Guaranteed salary, commission, or fee
*Equivalent amounts if paid on salary basis: $910 biweekly; $985.83 semimonthly; $1971.66 monthly; or $23,660 annualized.
To learn more about how minimum compensation rates may affect your company or if you have any questions regarding these issues, be sure to contact your employment counsel at Smith, Gambrell & Russell, LLP.