Washington’s Department of Labor and Industries announced that the 2025 state minimum wage increase from $16.28 per hour to $16.66 per hour for workers ages 16 and older. Workers who are ages 14 and 15 will see an increase to their minimum wage as well as the rate will increase to $14.16 per hour effective January 1st. Local jurisdictions are also entitled to set their own minimum wage higher than the state requirement. Bellingham, Burien, Renton, Sea-Tac, Seattle, Tukwila, and unincorporated King County all have local minimum wages for 2025.
- Bellingham: Beginning January 1, 2025, all employers within the city of Bellingham, regardless of size, are required to pay their employees at least $17.66 per hour.
- Burien: In 2025, Burien has three levels of minimum wage which will increase annually.
- Level one – “[A]ll employers, including franchisees, that employ more than 500 FTEs in King County or franchisors who employ more than 500 FTE in the aggregate = $4.50 above the state minimum wage effective January 1, 2025.
- Level two – “[A]ll employers including franchisees, that employ 21-499 FTEs in King County” = $3.50 above the state minimum wage effective July 1, 2025.
- Level three – “[A]ll employers with 20 or fewer FTEs” = exempt from the local minimum wage
- Minimum Wage – City of Burien
- Everett: Beginning July 1, 2025, Everett will have three levels of minimum wage depending on the size of the employer
- Large employers: Employers with more than 500 employees= $20.24 per hour
- Medium employers: Employers with 15-500 employees= $18.24 per hour
- Small employers: Employers with 14 or fewer employees follow the state minimum wage
- Renton: Beginning January 1, 2025 employees working within the Renton city limits are entitled to a minimum wage increase based upon the size of their employer.
- Large employers – Greater than 500 employees worldwide, including certain franchises = $20.90 per hour
- Mid-sized employers – 15-500 employees regardless of their location or over $2 million in annual gross revenue in Renton
- January 1 – June 30 = $18.90 per hour
- July 1 – December 31 = $19.90 per hour
- Small employers – fewer than 15 employees regardless of their location and less than $2 million in gross revenue are not covered by the increased minimum wage requirement
- 2024 Labor Standards – City of Renton
- Sea-Tac: Employees within the hospitality and transportation industries must earn at least $20.17 per hour effective January 1, 2025.
- Seattle: Beginning January 1, 2025, all employers, regardless of size, are required to pay employees at least $20.76 per hour. In a change from 2024, small employers will not be allowed to count tips and/or payments toward medical benefits as part of the required minimum wage amount.
- Tukwila: As of January 1, 2025, employers employing at least 15 employees regardless of location or have an annual gross revenue over $2 million generated within the City of Tukwila must pay employees an increased minimum wage based upon employer size:
- Large employers: Employing more than 500 employees worldwide, including franchises = $21.10
- Mid-sized employers: Employing 15-500 employees located worldwide, including franchises = $20.10(effective July 1, 2025, mid-size employers must pay the same minimum wage rate as large employers).
- Labor Standards – Minimum Wage Ordinance – City of Tukwila
- Unincorporated King County: The minimum wage for unincorporated King County increased effective January 1, 2025 depending upon the size of the employer and will increase each year depending upon the inflation rate. Small employers will be required to pay incremental increases at a lower rate than large employers until 2031 when all employers within unincorporated King County will pay the same minimum wage.
- Large employers: Employing 500 or more employees worldwide, including franchises = $20.20 per hour
- Mid-sized employers: Employing 16-499 employees or earning a gross revenue exceeding $2 million regardless of the number of employees = $18.29 per hour
- Small employers: Employing up to 15 employees and generating a gross revenue of less than $2 million = $17.29 per hour
Increase to Washington Salary Requirements for Overtime Exempt Employees
Employees exempt from the Minimum Wage Act and overtime requirements through the white-collar exemptions (executive, administrative, and professional) and computer professionals and outside salespeople are generally required to earn at least a threshold amount to be deemed exempt. For 2025 employees working for small employers (1-50 employees) must earn at least 2.0 times the minimum wage or $1,332.80 ($69,305.60 annualized), while those working for large employers (51 or greater) must earn at least 2.25 times the minimum wage or $1,499.40 ($77,968.80 annualized). Computer professionals paid hourly must continue to earn at least three times minimum wage which will be $58.31 per hour for 2025.
Whether an employee is properly classified as exempt or non-exempt is dictated by the law. Non-exempt employees must be paid at least minimum wage for all hours worked. They are entitled to overtime pay for hours worked in excess of 40 in a week and are entitled to all protections and benefits guaranteed by the Minimum Wage Act, including paid sick leave. Exempt employees, on the other hand, are not entitled to overtime pay, are not required to earn at least minimum wage for all hours worked, and are not guaranteed the protections and benefits offered by the MWA. In order to be classified as exempt, an employee generally must satisfy a three-part test:
- Salary Basis: The employee must be paid a predetermined and fixed salary (certain exceptions apply). The employee’s salary may not vary based upon the quality or quantity of the employee’s work.
- Salary Level: The amount paid to the employee must meet or exceed the current threshold amount regardless of whether the individual is a full-time or part-time employee.
- Duties: The employee must perform specific duties related to executive, administrative, professional, computer professionals, and outside sales jobs as defined by law.
What amounts count as salary has not changed and continues to include those set amounts paid on a recurring basis to compensate for work performed. Washington state law does not include board, lodging, housing, bonuses, commission, and benefits as salary.
Employees who no longer meet the salary threshold requirement may not remain exempt employees. Employers are not required to increase employee wages for those who have fallen below the salary threshold unless they wish the employee to remain exempt.
The 2025 Salary Threshold Implementation Schedule can be found here.
