AWB Statement on Proposed Change for Salaried Employees
OLYMPIA — Kris Johnson, president of the Association of Washington Business, issued the following statement on the proposed Executive, Administrative and Professional (EAP) rule issued today by the state Department of Labor & Industries:
“Requiring employers to pay salaried workers at least $79,872 per year by the time this rule is fully implemented and linking future pay increases to the state minimum wage is an astonishing increase over the current overtime rule and will likely catch many small businesses and nonprofits by surprise. If adopted, this rule will create a new super minimum wage that will impact every business in the state, even those that don’t employ exempt workers.
“The current rule needed updating, but this proposal simply goes too far and risks a variety of unintended consequences including a reduction in program offerings at nonprofits, fewer opportunities for employees to advance into salaried management positions, and reclassification of employees from salaried to hourly positions. We encourage state officials to slow down, reconsider the number and match the federal requirements, which are in the process of being updated. This will prevent a patchwork of regulations in different states and minimize the unintended consequences, both for employers and employees.”