Washington: Increases to Minimum Wage and Exempt Salary Threshold
It’s that time of year when various cities, states, and municipalities announce minimum wage increases for the upcoming year. This article outlines what has been announced in Washington State and the City of Seattle, along with a reminder (and resource) to check other localities as well.
Washington Exempt Salary Threshold for 2026
As we recently reported in our September Quarterly Update, Washington is due for an increase to the minimum salary threshold required for overtime-exempt employees as of January 1, 2026. While the Department of Labor and Industries outlined projected amounts back in 2020, through 2028, each year the official threshold increase is announced in September or October for the upcoming year, once it’s determined.
Yesterday the Department of L&I announced the threshold effective January 1, 2026, for exempt employees under the “white collar” exemption categories in Washington, will be the same for all employers in Washington. (Recall, last year there was a different threshold for small employers and large employers.) The new threshold is:
2026 Exempt Employee Salary Threshold: $80,168.40 annually
This is a significant jump for small employers (up to 50 employees)! The 2025 threshold is $69,305.60 annually. For large employers (51 or more employees), it’s a much smaller jump from the 2025 threshold of $77,968.80 annually. For next year’s projections, through 2028, check out the implementation schedule. Please note, the implementation schedule may still show the 2026 projections. And, two quick related reminders/notes:
- To be exempt from overtime under both federal and state laws, a position must meet a specific salary threshold and the position’s job duties must meet the regulatory requirements of an exempt position. (Simply paying an employee the minimum salary does not make the employee exempt.)
- Exempt employees in Washington who qualify for exemption under the computer professional exemption and are paid an hourly rate, must be paid $59.96 per hour as of January 1, 2026 (up from $58.31 per hour in 2025).
Minimum Wage Increases for 2026
Washington is really keeping us on our toes with minimum wage increases. Not only do we have a state minimum wage, but many cities (and even unincorporated King County) have established their own minimum wage standards. Here we are sharing the details of the 2026 minimum wage changes for Washington State and the City of Seattle:
- Effective January 1, 2026, all Washington employers will be required to pay $17.13 per hour. This is up from $16.66 in 2025.
- Effective January 1, 2026, all Seattle employers will be required to pay $21.30 per hour. This is an increase from $20.76 in 2025.
If you have Washington employees in locations outside Seattle, we encourage you to check your location’s requirements for minimum wage. The Department of L&I provides a Local Minimum Wage Rates site that can be used as a resource in addition to the city/location-specific websites. As you’ll see on the L&I site, locations with local minimum wage requirements currently include Bellingham, Burien, Everett, King County (unincorporated areas), Renton, and Tukwila.
As always, if you have any questions about this information or any HR-related area, please contact us. Navigating the exempt threshold increase can be particularly challenging so please reach out if you need support. We’re here for you!
HRT Northwest: Your Northwest HR Team
Seattle: (253) 642-7372 | info@hrtnorthwest.com
This Update is not a full overview of all recent or upcoming legal changes. HRT Northwest is staffed by professionals in the field of Human Resources and business management. We are glad to help with your HR needs; however, we do not offer legal advice and our services are not a substitute for the help of a qualified attorney.