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Some states hike overtime salary threshold higher than Feds

A new federal salary level for low-paid managers to be eligible for overtime pay kicks in Jan. 1.

Employees work overnight in a factory.
Employees work overnight in a factory.
Greg Baker/AFP via Getty Images

About 1.3 million low-paid managers and supervisors are eligible for overtime pay as of Jan. 1 because the U.S. Department of Labor has raised the overtime salary threshold. Management employees (those with administrative, professional or executive responsibilities) who are paid a salary and make less than $35,568 per year will now have to track their hours and be paid time and a half when they work more than 40 hours per week.

In some states, managers making more than that are entitled to overtime, because states can set and enforce higher salary thresholds than the federal standard. In Washington state, the salary threshold will go up in steps, exceeding the federal level in 2021 and reaching $83,356 by the year 2028 (adjusted for projected inflation). Some other states with salary thresholds higher than the federal level include California, New York and Maine.

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