News

2011 Minimum Compensation Rates

New Year Brings Few Changes in Minimum Compensation Rates
December 2, 2010

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.

This content is provided for general informational purposes only, and your access or use of the content does not create an attorney-client relationship between you or your organization and Cooley LLP, Cooley (UK) LLP, or any other affiliated practice or entity (collectively referred to as “Cooley”). By accessing this content, you agree that the information provided does not constitute legal or other professional advice. This content is not a substitute for obtaining legal advice from a qualified attorney licensed in your jurisdiction and you should not act or refrain from acting based on this content. This content may be changed without notice. It is not guaranteed to be complete, correct or up to date, and it may not reflect the most current legal developments. Prior results do not guarantee a similar outcome. Do not send any confidential information to Cooley, as we do not have any duty to keep any information you provide to us confidential. This content may be considered Attorney Advertising and is subject to our legal notices.