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

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Several cities – including Seattle, SeaTac, and Tukwila – will require rates much higher than the state's $16.28 per hour

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.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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