Employers should review compensation rates for both exempt and nonexempt employees to ensure compliance with current legal thresholds. 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:
$455/week* on salary basis
Professional or Administrative
$455/week on salary or fee basis
$27.63/hour (no change from 2009)
$100,000 total compensation (including minimum $455 minimum weekly salary or fee)
Licensed practicing medical doctor or attorney; teacher
Business Owner (20% minimum equity and engaged in management)
In the following jurisdictions, higher rates prevail as shown. Not all states are reflected.
$7.75/hour (after 1/1/10, the minimum wage will be permanently 50 cents higher than the federal standard)
$9.79/hour (San Francisco)
Executive, professional or administrative
$2,773.33/month on salary basis
$37.94/hour, $6,587.50/month or $79,050/year
$7.24/hour (decrease from 2009)
Effective July 1, 2010, new state minimum wage is $8.25/hour.
However, employers may pay new employees (first 90 days of employment) and employees under the age of 18 up to 50 cents less.
$4.25/hour for employees under the age of 20
Outside Sales Exemption
Guaranteed salary, commission, or fee
*Equivalent amounts if paid on salary basis: $910 biweekly; $985.83 semimonthly; $1971.66 monthly; or $23,660 annualized.
To learn more about how minimum compensation rates may affect your company or if you have any questions regarding these issues, be sure to contact your employment counsel at Smith, Gambrell & Russell, LLP.