Client Alerts

12/15/2009

2010 Minimum Compensation Rates

New Year Brings Few Changes in 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, 2010:

JURISDICTIONEXEMPTIONMINIMUM COMPENSATION
FEDERALNonexempt$7.25/hour
EXEMPT
Executive$455/week [1] 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; teacherNone
Business Owner (20% minimum equity and engaged in management)None
Outside salesNone
In the following jurisdictions, higher rates prevail as shown. Not all states are reflected.
CALIFORNIANonexempt$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
COLORADONonexempt$7.24/hour (decrease from 2009)
MASSACHUSETTSNonexempt$8.00/hour
NEW YORKNonexempt$7.25/hour
WASHINGTON, DCNonexempt$8.25/hour
WASHINGTON
STATE
Nonexempt$8.55/hour
Outside Sales Exemptionguaranteed salary, commission, or fee

Notes

1 Equivalent amounts if paid on salary basis: $910 biweekly; $985.83 semimonthly; $1971.66 monthly; or $23,660 annualized.


©2003-2012 Cooley LLP. All rights reserved.
COOLEY® and the COOLEY LLP® logo are registered U.S. service marks of Cooley LLP.
Cooley was founded in 1920 – for our story, visit our history page.