Preparing for the 2023 Washington Salary Threshold Increase

By David Jamieson

President, Upper Columbia Conference

At our UCC Executive Committee on April 28, 2022, we discussed the far-reaching implications of the 2023 Washington Salary Threshold implementation upon Upper Columbia Conference. 

In 2019, Governor Jay Inslee and the Washington State Department of Labor and Industries established new guidelines regarding overtime pay, paid sick leave, and other requirements impacted by the state’s Minimum Wage Act. These new guidelines affect who is considered “exempt” and what salary and benefits exempt employees can expect to receive.

Why am I hearing about this now?

While the implementation schedule began in July 2020 and increases every other January through 2027, the required changes begin to significantly impact UCC and our employees in 2023. 

How does this impact Upper Columbia Conference? 

For 2020-2022, the impact to UCC was minimal. However, the incremental increase in 2023 will begin to impact the Conference significantly. As required pay increases for all exempt employees, our expenses will soon begin to outpace income. 

What is the Conference doing about it? 

The Conference established a Washington Salary Threshold Committee in 2020 to determine the impact of these new guidelines on UCC. The committee consulted with colleagues from the North American Division, North Pacific Union Conference, Washington Conference, and legal counsel. Based on these discussions, recommendations were submitted to the UCC Administrative Committee (ADCO). A plan was developed by ADCO, in conjunction with our Washington Salary Threshold Committee, our Administrative and Finance Committee, and was presented to the UCC Executive Committee on April 28 to proactively meet this challenge head on.

The following 5 Part Strategy was voted by the UCC Executive Committee to help navigate the implications of the Washington Salary Threshold on our Conference:

• Radical prayer — We ask for your devoted prayers and financial support for our 2022 Tithe to exceed $500,000 above budget. We need your faithful generosity to exceed $28,600,000 in tithe in 2022.
• Reserves — To give us some breathing room, we will plan to use up to $500,000 from our Conference reserves in 2023.
• Reductions — To create future financial sustainability, it was voted to reduce our work force by 5 full time employees, between the Conference office and field, in 2022. Wherever possible, these reductions will be made through attrition.
• Re-status and re-district churches — We will begin the process of developing a plan to better meet the needs of smaller churches and companies in remote locations, which includes balancing expectations for pastoral resources and serving the spiritual needs of our members in innovative ways.
• Review employee benefits — Employee benefits will be reviewed with the goal to temporarily offset the increase in wages. Our goal is to limit, as much as possible, any negative impact to our employees.

We recognize that none of these strategies are going to be easy to implement and that we must approach this challenge not with a mindset of scarcity, but rather one of abundance. 

We also fully believe that as we place our complete trust and confidence in God, that He will ensure that the mission of the Upper Columbia Conference will continue to move forward in a mighty way for His honor and glory. The truth is that every problem or challenge that is presented is yet another opportunity for God’s power and majesty to shine through!

As we work to bring One More to the kingdom, we ask for your prayers and faithful financial support.

For the full Washington Salary Threshold Implementation schedule for minimum wage as established by the State of Washington, see news.uccsda.org/WAsalary522.

This article is part of the President's Report May 2022. To read the full report, including actions from the 4.28.22 Executive Committee, see news.uccsda.org/president522.