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© 2019 American Payroll Institute, Inc. expected to go into effect, the increased salary threshold of $913 per week would have made most state thresholds inapplicable. Court decisions and the current administration’s DOL have kept the federal threshold at $455 per week until new regulations are issued, meaning several state salary thresholds currently are more favorable to employees and must be applied. Note that less favorable state salary thresholds still apply to employees not covered by the FLSA. State salary threshold changes Alaska. Effective January 1, 2019, the salary threshold increased to $41,142.40 per year, which equals $791.20 per week (formerly $40,934.40 per year and $787.20 per week), or double the minimum wage rate of $9.89 per hour for the first 40 hours of work in a week. California. Effective January 1, 2019, the salary threshold increased to the monthly equivalent of double the minimum wage or: $4,160 per month ($49,920 per year or $960 per week $12 per hour minimum wage rate) for large employers of 26 or more employees and $3,813.34 per month ($45,760 per year or $880 per week $11 per hour minimum wage rate) for small employers with 25 or fewer employees. A computer software employee must earn at least $45.41 per hour or, if paid on a salary basis, at least $94,603.25 annually, which must be paid at least once a month and in a monthly amount of not less than $7,883.62 per month (see PAYSTATE UPDATE, Issue 22, Vol. 20). Certain licensed physicians or surgeons must earn at least $82.72 per hour. Colorado. Effective January 1, 2019, the executive employee salary threshold (there is no salary threshold for administrative and professional employees) increased to the equivalent of the state minimum wage rate of $11.10 per hour for all hours worked in a workweek: $444 per week. The FLSA requirement of $455 per week is greater, so all employers or employees covered by the FLSA must comply with the federal requirement. Administrative and professional employees must be paid on a salaried basis, with the exception of doctors, lawyers, teachers, and employees in highly technical computer occupations earning at least $27.63 per hour. Maine. Effective January 1, 2019, the salary threshold increased to 3,000 times the state minimum wage rate of $11 per hour or $33,000 per year ($3,000 x $11 per hour), which equals (for different pay periods) $2,750 monthly $1,375 semimonthly $1,269.23 biweekly or $634.62 weekly. New York. Effective December 31, 2018, the executive and administrative employee salary threshold increased to: $1,125 per week ($58,500 per year) for large employers (with 11 or more employees) in New York City $1,012.50 per week ($52,650 per year) for small employers (with 10 or fewer employees) in New York City $900 per week ($46,800 per year) for Long Island and Westchester County employers and $832 per week ($43,264 per year) for employers in the rest of the state. The salary requirement does not apply to professional employees. Oregon. The salary threshold is the state minimum wage rate ($12 per hour for the Portland metropolitan service district $10.50 per hour for nonurban counties and $10.75 per hour for the rest of the state) multiplied by 2,080 hours per year, then divided by 12 months. This is the equivalent of a salary of: $480 per week or $24,960 per year in the Portland metropolitan service district (effective July 1, 2019, it will increase to $500 per week or $26,000 per year) $420 per week or $21,840 per year in nonurban counties (effective July 1, 2019, it will increase to $440 per week or $22,880 per year) and $430 per week or $22,360 per year in the rest of the state (effective July 1, 2019, it will increase to $450 per week or $23,400 per year). The employee must be paid on a salary basis for each pay period of one week or longer (but the pay period cannot exceed one month). 4 | PayState Update January 7, 2019 • Volume 21 • Issue 1 STATE-BY-STATE DISTRICT OF COLUMBIA Tip credit to continue. Effective 12-13-18, the Tipped Wage Workers Fairness Amendment Act of 2018 repealed the ballot initiative (Initiative No. 77) that would have eliminated the tip credit (see PAYSTATE UPDATE, Issue 21, Vol. 20). This means the tip credit continues in D.C. for the foreseeable future. The mayor signed the ordinance on 10-23-18 and Initiative No. 77 was approved by voters on 6-19-18 [Ordinance B22-0913, L. 2018]. HAWAII UI taxable wage base increase. For 2019, the unemployment insurance (UI) taxable wage base has increased to $46,800 from $45,900 (this updates The Payroll Source®, §7.2-2). IDAHO UI taxable wage base increase. For 2019, the unemployment insurance (UI) taxable wage base has increased to $40,000 from $38,200 (this updates The Payroll Source®, §7.2-2). INDIANA DOR warns employers about email scam. The Department of Revenue (DOR) warned employers about an email scam impersonating the DOR or Internal Revenue Service. The scam emails use tax transcripts to bait employers to open attachments that are corrupted with malware. Employers that receive an email claiming to be from the DOR should forward the email to investigations@ dor.in.gov [DOR, News Release, 11-20-18]. MONTANA Electronic UI reporting required. Effective for first quarter 2019 reports, employers with 20 or more employees will be required to file unemployment insurance (UI) reports