Washington's Minimum Wage Increases January 1, 2024 – Here's Everything Employers Should Know

Washington's minimum wage will increase to $16.28 per hour beginning January 1, 2024, according to the Washington State Department of Labor and Industries (L&I). Several cities in Washington will require even higher increases. Employers should familiarize themselves with these upcoming changes effective January 1:

Salary Threshold for Exempt Employees

Beginning January 1, for all employers in Washington, to meet the salary basis threshold for exemption from overtime, employees must be paid a salary of at least $1,302.40 per week or $67,724.80 per year.

Exempt Computer Professionals

For those exempt computer professionals paid on an hourly rate, the applicable minimum hourly rate—regardless of employer size—will be 3.5 times the minimum wage, or $56.98 per hour.

Local Cities Require Even Higher Minimum Wage Rates

SeaTac, Seattle, and Tukwila will require employers to pay even higher minimum wage rates effective January 1, 2024.

• SeaTac's minimum wage will increase to $19.71 per hour for Hospitality and Transportation workers.
• Seattle:
  • For small employers with 500 or fewer employees, the minimum wage rate will increase to $17.25 per hour if the employer pays $2.72 per hour toward medical benefits and/or if the employee earns $2.72 per hour in tips. If not, the employer must pay $19.97 per hour.
  • For large employers with 501 or more employees, the minimum wage rate will increase to $19.97 per hour.
  • Rideshare Drivers:
    • For trips within Seattle in 2024, drivers will earn 66 cents per passenger platform minute and $1.55 per passenger platform mile, or $5.81 per trip, whichever is greater.
    • For trips outside of Seattle in 2024, drivers will earn 38 cents per passenger platform minute and $1.31 per passenger platform mile, or $3.37 per trip, whichever is greater.
• Tukwila:
  • For large employers (more than 500 employees worldwide), the minimum wage rate will increase to $20.29 per hour on January 1, 2024.
  • For mid-size employers (15 to 500 employees worldwide or over $2 million of annual gross revenue in Tukwila), the minimum wage will increase to $18.29 per hour on January 1, 2024. On July 1, 2024, the rate will increase again to $19.29 per hour.

Key Takeaways for Employers

• Employers that are located in either SeaTac, Seattle, or Tukwila should note that they are required to pay a higher minimum wage rate according to the city's local rules.
• For any employer with exempt employees, employers must pay those employees at least $1,302.40 per week or $67,724.80 annually.

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As always, DWT will provide updates as needed. In the meantime, if you have any questions about your company's compliance, please contact legal counsel.