10/14/24: Washington Labor and Industries Announces Minimum Wage for 2025
By Nicole Elgin & Hannah LaChance
Washington State Department of Labor & Industries announced an increase to the state minimum wage that will take effect January 1, 2025. The increase also impacts the overtime exempt threshold for both small and large employers.
The Washington state minimum wage, which applies to workers aged 16 and older, will increase from $16.28 per hour to $16.66 per hour. For workers ages 14 and 15, the state minimum wage will increase from $13.84 per hour to $14.16 per hour. Remember that Seattle, SeaTac, Tukwila, Renton, and Bellingham have established their own local minimum wages that may apply to employees working in those areas. Burien will have its own minimum wage in 2025.
The increase to the state minimum wages will impact the minimum salary required for employees to be classified as exempt from overtime. The requirements differ based on status as a small employer (50 employees or less) versus a large employer (51 or more employees). For small employers to classify a worker as exempt, the employer must pay the worker at least double the minimum wage ($1,332.80/week or $69,305.60/year). Larger employers will have to pay workers 2.25 times the minimum wage to classify them as exempt ($1,499.40/week or $77,968.80/year). Different rules apply for a variety of job classifications including rules for exempt computer professionals and rideshare drivers.
The Washington wage threshold required for noncompetition agreements in 2025 will be $123,394.17. This is coupled with other significant state and federal restrictions when a noncompetition agreement can be presented to an employee.
Employers will want to plan to provide notice to employees and make any classification or payroll changes prior to January 1st, 2025, in order to ensure compliance with state and local laws.
For any questions about wage compliance or takeaways for your workplace’s specific labor relation needs, contact Hannah LaChance at hlachance@barran.com or Nicole Elgin at nelgin@barran.com.
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