Certain "white collar" employees who perform specific job duties and earn a minimum salary can be exempt from overtime and other requirements of the Minimum Wage Act.
L&I has created this optional salary budget tool to assist employers with planning. This is not a detailed compliance tool, but an estimating tool intended only to help employers.
You can use this tool to:
- Determine whether an employee's salary meets the minimum salary required for exemption from overtime; or
- Estimate a budget for the overtime cost if an employee is classified as nonexempt (overtime eligible).
This tool uses the standard time-and-a-half overtime calculation method. For other allowable methods to determine overtime pay, see administrative policies ES.A.8.2 "How to Calculate Overtime" and ES.A.8.1 "Overtime".
For more information about the exemptions to the Minimum Wage Act, including information on the job duties tests and minimum salary thresholds, visit L&I's Overtime Rules Resource Center web page.
The Revised Code of Washington, Washington Administrative Code, and L&I administrative policies are the official sources for information about the executive, administrative, professional, computer professional, and outside salesperson exemptions from the Minimum Wage Act. L&I has created this optional salary budgeting tool to assist employers and employees with understanding and planning for applicable salary thresholds. This tool is provided solely as a starting place for employers and employees and should not replace review of the applicable laws and official guidance of L&I with the assistance of legal counsel. Results are estimates based on the information entered at the time and are subject to changes in the applicable salary thresholds. Should there be any conflicts between the information or results provided by this tool and the RCWs, WACs, or administrative policies, users must rely on the official sources of information. If additional clarification is required, consult the Employment Standards program manager.