2011 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, 2011:

JURISDICTIONEXEMPTIONMINIMUM COMPENSATION
FEDERALNonexempt$7.25/hour
Executive$455/week1 on salary basis
Professional or Administrative$455/week on salary or fee basis
Computer$27.63/hour (no change from 2010)
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) (increase from 2010)
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$7.36/hour (still proposed; not final) (increase from 2010)
MASSACHUSETTSNonexempt$8.00/hour
NEW YORKNonexempt$7.25/hour
WASHINGTON, DCNonexempt$8.25/hour
WASHINGTON
STATE
Nonexempt$8.67/hour (increase from 2010)
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.

Related Contacts
Lois Voelz Senior Counsel, Palo Alto
Gregory Tenhoff Partner, Palo Alto
Wendy Brenner Partner, Palo Alto
Leslie Cancel Special Counsel, San Francisco
Frederick Baron Senior Counsel, Palo Alto
Elizabeth Lewis Partner, Reston
Related Practices & Industries

Employment & Labor