Washington Wage & Hour Changes for 2024

Updated October 19, 2023

As we recently reported in our September Quarterly Update, Washington is due for an increase to the minimum salary threshold required from overtime-exempt employees as of January 1, 2024. While the Department of Labor and Industries outlined an implementation schedule back in 2020 for the projected changes through 2028, each year the official threshold increase is announced in September or October for the upcoming year, once it’s determined. For 2024:

Effective January 1, 2024, the minimum salary threshold for exempt employees under the “white collar” exemption categories in Washington increases to $1,302.40 per week ($67,724.80 per year) for ALL employers. As a reminder, in both 2021 and 2023 there was a different threshold based on employer size, with the threshold for small employers being less than the threshold for large employers. The increase to $67,724.80 is significant for those employers who were in the small employer category: in 2023 the threshold was $57,293.60 so this is a $10,000 annual salary increase. In 2025, the threshold requirements will split again for small and large employers. For those projections, check out the implementation schedule.
A quick reminder – to be exempt from overtime laws 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 $56.98 per hour as of January 1, 2024 (up from $55.09 per hour in 2023).

In addition to the salary threshold increase, the following minimum wage changes for non-exempt employees will also be in effect as of January 1, 2024:

Washington State’s minimum wage increases to $16.28 per hour, which reflects a 3.4% increase from 2023.
The City of Seattle’s minimum wage increases depending on employer size and other factors.
- For large employers (501 or more employees): minimum wage increases to $19.97 per hour. This is an increase from $18.69 in 2023.
- For small employers (500 or less employees) who do not pay at least $2.72 per hour toward the employee’s medical benefits and/or the employee does not earn at least $2.72 per hour in tips: minimum wage increases to $19.97 per hour. (There are two increases to note here: the hourly rate increased from $18.69 to $19.97 and the benefit contribution and/or tip amount to assess, increased from $2.19 to $2.72 per hour.)
- For small employers (500 or less employees) who DO pay at least $2.72 per hour toward the employee’s medical benefits and/or the employee DOES earn at least $2.72 per hour in tips: minimum wage increases to $17.25 per hour. (There are two increases to note here as well: the hourly rate increased from $16.50 to $17.25 and the benefit contribution and/or tip amount to assess, increased from $2.19 to $2.72 per hour.)
The City of SeaTac announced a minimum wage increase for employees in the hospitality and transportation industries. Effective January 1, 2024 the minimum wage for employees in those industries will increase to $19.71.

As always, if you have any questions about this information or any HR-related area, please contact us. We’re here for you!

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