Washington’s 2027 Minimum Wage and Exempt Salary Thresholds: What Employers Need to Know 

Washington State has announced its 2027 minimum wage and the new salary thresholds for employees classified as exempt from overtime. Effective January 1, 2027, Washington’s statewide minimum wage will increase from $17.13 to $17.73 per hour. The change also increases the minimum salary employers must pay certain executive, administrative and professional employees to maintain an overtime-exempt classification. 

The biggest impact this year is on employers with 51 or more employees, where the exempt salary threshold rises sharply. The good news is that employers have time to identify affected roles and make any necessary decisions well before January 1. 

2027 Washington minimum wage and exempt salary thresholds 

	2026	2027
Washington minimum wage	$17.13/hour	$17.73/hour
Exempt salary threshold – 1-50 employees	$80,168.40/year	$82,976.40/year
Exempt salary threshold – 51+ employees	$80,168.40/year	$92,196.00/year

For employers with 1-50 employees, the 2027 threshold is $1,595.70 per week. For employers with 51 or more employees, the threshold rises to $1,773.00 per week. 

The larger increase for employers with 51+ employees reflects the next step in Washington’s phased implementation of its overtime rules. 

Salary alone does not determine whether a role is exempt 

Meeting the salary threshold is only one part of the exemption test. 

For executive, administrative and professional exemptions, the employee must also meet the applicable duties requirements. Job title alone does not determine whether a position qualifies. 

That does not mean every employer needs to re-audit every exempt role each year. But if a role is close to the threshold or has changed substantially since it was last reviewed, this can be a sensible time to confirm that the classification still fits the work being performed. 

Can bonuses or commissions make up the difference? 

Under Washington’s state rules, no. 

Bonuses, commissions and benefits do not count toward the state salary threshold. The employee must have a guaranteed weeklysalary that meets the applicable amount. 

This can be particularly relevant for roles where total compensation is above the threshold but fixed salary is not. In these cases, either the guaranteed salary must be increased or the role should be reclassified as non-exempt. 

What about computer professionals? 

Washington has separate rules for certain employees who qualify for the computer professional exemption. 

For exempt computer professionals who are paid on an hourly basis, the minimum rate increases from $59.96 per hour in 2026 to $62.06 per hour in 2027. 

The rate is only one part of the exemption. The employee must also meet the applicable duties requirements. 

What should employers do now? 

Start with employees currently classified as exempt whose salaries will fall below, or sit fairly close to, the applicable 2027 threshold.  

From there, you can look at the affected roles individually and decide whether a salary adjustment or a move to non-exempt status makes sense. If a role has changed substantially since it was last reviewed, this may also be a useful opportunity to confirm that the exemption still fits the work being performed. 

Any classification change will have some practical implications for payroll, timekeeping and managers, so making the decision with enough time to communicate and implement it properly will make January much easier. 

What about local minimum wages? 

Seattle’s minimum wage will increase from $21.30 to $22.14 per hour on January 1, 2027.  Seattle’s Office of Labor Standards publishes the current Seattle rate and annual updates.  

Other Washington jurisdictions also set their own minimum wages. Washington L&I maintains a Local Minimum Wage Rates resource with links and current information for local requirements. Employers should confirm the rate that applies where their employees work.  

Importantly, Washington’s statewide exempt salary threshold is based on the state minimum wage, not a higher local minimum wage. 

What happens in 2028? 

2027 is also worth viewing in the context of Washington’s broader overtime-rule implementation schedule. In 2028, the phase-in is scheduled to be complete, and both small and large employers will use the same salary-threshold multiplier of 2.5 times the state minimum wage. 

That means the larger step-up in 2027 falls on employers with 51 or more employees; in 2028, smaller employers are scheduled to move from 2.25 to 2.5 times the state minimum wage as well. The actual 2028 dollar threshold will depend on the state minimum wage set for that year. 

View Washington L&I’s overtime-rule implementation schedule → 

Before January 1 

For organizations with employees close to the new thresholds,  we don’t recommend waiting until December. A focused review now can give employers time to understand which employees are affected, make any necessary decisions, and communicate or implement changes before the new rates take effect.