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Effective Jan. 1, 2027, Washington state’s new minimum wage will be $17.73 an hour, an increase of 3.5 percent.
The Washington State Department of Labor & Industries (L&I) made the announcement Sept. 30, adding that the increase also changes the minimum salary for workers that are overtime-exempt.
“State law requires L&I to calculate Washington’s minimum wage for the coming year using the federal Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). L&I compares the CPI-W from August of the previous year to August of the current year and adjusts the minimum wage based on the percentage change,” said the announcement.
By law, employers can pay workers who are 14- and 15-years-old 85% of the minimum wage, which will be $15.07 an hour on Jan. 1.
Currently, the state’s minimum wage is $17.13 an hour, while the federal minimum wage has remained at $7.25 an hour since July 24, 2009. Several cities and areas in Washington currently have minimum wages that are higher than the state: Seattle, SeaTac, Tukwila, Renton, Bellingham, Everett, Burien and unincorporated King County.
Large employers with 51 or more employees currently must pay overtime-exempt workers at least 2.25 times the minimum wage. When the minimum wage increases, so will the overtime-exempt multiplier, which will become 2.5 times the minimum wage; an employee must earn at least $1,773 a week ($92,196 a year) to be exempt from receiving overtime pay.
Small businesses with up to 50 workers will not have an increase in overtime-exempt until 2028, when it is scheduled to increase from 2.25 to 2.5 times the minimum wage.
For more information on other changes and increases in pay, visit lni.wa.gov/workers-rights/wages/minimum-wage.
