02/03/2009
2009 Minimum Compensation Rates
New Year Brings Changes in Selected Minimum Compensation Rates
Employers should review compensation rates for both exempt and nonexempt employees to ensure compliance with current legal thresholds. Set forth 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, 2009, unless otherwise noted:
| | MINIMUM COMPENSATION |
| FEDERAL | NONEXEMPT | $6.55/hour through July 23, 2009
$7.25/hour effective July 24, 2009 |
| EXEMPT |
| Executive | $455/week1 on salary basis |
| Professional or Administrative | $455/week on salary or fee basis |
| Computer | $27.63/ hour |
| 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. |
| CALIFORNIA | NONEXEMPT | $8.00/hour
$9.79/hour (in 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 on salary basis |
| Licensed Physician | $69.13/hour |
| COLORADO | NONEXEMPT | $7.28/hour |
| MASSACHUSETTS | NONEXEMPT | $8.00/hour |
| NEW YORK | NONEXEMPT | $7.15/hour through July 23, 2009
$7.25/hour effective July 24, 2009 |
| WASHINGTON, D.C. | NONEXEMPT | $7.55/hour through July 23, 2009
$8.25/hour effective July 24, 2009 |
| WASHINGTON STATE | NONEXEMPT | $8.55/hour |
| 1 Equivalent amounts if paid on salary basis: $910 biweekly; $985.83 semimonthly; $1971.66 monthly; or $23,660 annualized |
Our Employment & Labor group has extensive counseling experience assisting clients with proper classification among the categories described above. If you would like to discuss these issues further or have questions about this Alert, please contact one of the attorneys listed above.