The state of Washington has announced increases in the minimum wage rate and the exempt salary thresholds for employees, effective January 1, 2024. These increases impact several state wage requirements that you’ll want to be aware of if you have employees in Washington. The cities of Seattle, SeaTac, and Tukwila also have higher minimum wage requirements that are increasing in 2024. Here’s what we know about these rate increases:
Statewide minimum wage: The statewide minimum wage rate for nonexempt (overtime-eligible) workers will rise to $16.28 per hour (up from $15.74, an increase of 3.4 percent), effective January 1, 2024. Details are available on the Department of Labor and Industries (L&I) Washington minimum wage webpage.
Exempt salary: As a result of the minimum wage increase for nonexempt employees, the minimum salary for white-collar workers who are exempt from overtime will increase as of January 1, 2024, as well. Both small and large employers must pay exempt employees a salary of at least $1,302.40 per week ($67,724.80 per year). For a helpful chart, see L&I’s salary implementation threshold schedule.
The salary threshold under federal law is only $684 per week, so employers in Washington must pay at the higher state level. The threshold salary is required regardless of how many hours an exempt employee works in the week, so even a part-time employee must be paid at this new higher salary (not a prorated portion of it) to satisfy the overtime exemption. L&I has created an online overtime resource center to assist employers in understanding these salary requirements, including charts, fact sheets, workshops, and webinars.
Exempt computer professionals: The minimum salary rate for exempt computer professionals who are paid hourly will also increase as of January 1, 2024. All employers who choose to pay their exempt computer professionals an hourly rate rather than the salaried exempt rate described above must pay them at least 3.5 times the state minimum wage, which works out to $56.98 per hour in 2024. See L&I’s Administrative Policy ES.A.9.6 (Exemption from Minimum Wage Act Requirements for Computer Professional Employees).
Seattle minimum wage: The City of Seattle is increasing its minimum wage to $19.97 per hour for most employers. Seattle’s minimum wage rates apply to all nonexempt employees for all hours they work within the city limits. The specific minimum wage requirements for 2024, shown on the city’s minimum wage webpage, will be:
- $19.97 per hour (up from $18.69 per hour) for large employers (more than 500 employees worldwide); or
- $19.97 per hour for smaller employers (500 or fewer employees) who don’t pay at least $2.72 per hour toward an employee’s medical benefits and/or if the employee doesn’t earn at least that much per hour in tips; or
- $17.25 per hour (up from $16.50 per hour) for employees of smaller employers who receive medical benefits worth at least $2.72 per hour or earn at least that much per hour in tips.
Employers are required to provide a written notice to each employee working in Seattle before any change in their wage rate or other terms of employment. An explanation of this requirement and a sample notice form can be found on Seattle’s wage theft ordinance webpage. If you will be adjusting wages in light of the minimum wage increases, make sure you notify any affected workers. Although not yet available, a new 2024 version of the required workplace poster will be found online.
SeaTac minimum wage: The City of SeaTac also maintains its own minimum wage rate covering certain transportation and hospitality employees working within the city. The 2024 rate for those employees is increasing to $19.71 per hour, up from last year’s $19.06 per hour.
Tukwila minimum wage: The City of Tukwila also has its own minimum wage rate covering most employees working within the city. Tukwila’s minimum wage ordinance first took effect on July 1, 2023, at the rate of $18.99 per hour for large employers and $16.99 per hour for mid-size employers.
Beginning January 1, 2024, the minimum wage rates in Tukwila are:
- Large employers (more than 500 employees worldwide and all franchisees associated with a franchisor or a network of franchisees that employ more than 500 employees in aggregate): $20.29 per hour.
- Mid-size employers (at least 15 employees worldwide or an annual gross revenue over $2 million generated within the city limits of Tukwila): $18.29 per hour for the first six months of 2024, and $19.29 per hour for the last six months of 2024 (beginning July 1, 2024).
Tukwila’s wage ordinance doesn’t apply to employers with fewer than 15 employees worldwide if they have an annual gross revenue of $2 million or less in Tukwila and aren’t associated with a franchisor or network of franchisees employing over 500 workers.
The Tukwila ordinance also requires covered employers to offer qualified part-time employees additional hours of work before hiring more employees, subcontractors, and temporary agencies. Covered employers must distribute the Notice of Tukwila Labor Standards to employees and display the Tukwila Labor Standards workplace poster, both available at the link above. Employees must receive the 2024 Notice of Tukwila Labor Standards no later than December 2, 2023. Covered employers must certify their compliance to the city by January 31, 2024.
Tips: The minimum wage rates in Seattle, SeaTac, and Tukwila continue to be higher than the statewide rate in Washington. You must pay employees at the highest minimum wage rate that applies to them. While written notice of these pay increases isn’t required except for Seattle and Tukwila employees, advance written notice is certainly a best practice for employee retention and morale. For more information on overtime exemptions in Washington, see our Legal Guide, State Laws on the White Collar Exemptions from Overtime. If you have questions about which rates apply to your employees or whether they are exempt, contact your Vigilant Law Group employment attorney.
