The state of Washington has announced increases to the minimum wage rate and to the salary thresholds for exempt white-collar employees, effective January 1, 2027. We also know the 2027 rates for the cities of Bellingham, Renton, SeaTac, Seattle, and unincorporated King County, which are described below. We’re still waiting for updates from the cities of Burien, Everett, and Tukwila, and will report on those increases in a future newsletter. Here’s what we know about the announced rate increases:
Statewide minimum wage: The statewide minimum wage rate for nonexempt (overtime-eligible) workers will rise to $17.73 (up from $17.13 per hour, an increase of 3.5 percent), effective January 1, 2027. Optional workplace posters 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, 2027, as well. Employers with 51 or more employees must pay exempt employees a salary of at least $1,773.00 a week ($92,196.00 a year). Smaller employers must pay exempt employees a salary of at least $1,595.70 a week ($82,976.40 a year). For a helpful chart, see L&I’s salary implementation threshold schedule.
The salary threshold for exempt white-collar employees under the federal Fair Labor Standards Act (FLSA) remains at only $684 per week, so employers in Washington must pay at the higher state level. The threshold salary generally is required regardless of how many hours an exempt employee is scheduled to work in a week, so even a part-time exempt 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, facts sheets, and webinars.
Exempt computer professionals: The minimum rate for exempt computer professionals in Washington who are paid hourly will also increase as of January 1, 2027. 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 $62.06 per hour in 2027. See L&I’s Administrative Policy ES.A.9.6 (Exemption from Minimum Wage Act Requirements for Computer Professional Employees).
Bellingham minimum wage: Effective January 1, 2027, the City of Bellingham is increasing its minimum wage rate to $19.73 per hour (up from $19.13 per hour) for most employees. (Bellingham’s minimum wage is pegged at $2.00 per hour more than the applicable statewide minimum wage.) There is no requirement to display a minimum wage poster for Bellingham. The City of Bellingham has not yet updated its webpage with the new minimum wage.
Renton minimum wage: Effective January 1, 2027, the City of Renton is increasing its minimum wage rate to $22.28 per hour (up from $21.57 per hour) for large employers (more than 500 employees worldwide including temporary agency employees and all franchisees associated with a franchisor or a network of franchisees that employ more than 500 employees in aggregate) and midsize employers (at least 15 but no more than 500 employees worldwide or over $2 million of annual gross revenue in Renton).
SeaTac minimum wage: The City of SeaTac’s new minimum wage, which covers certain transportation and hospitality employees working within the city, is $21.47 per hour (up from $20.74 per hour) as of January 1, 2027.
Seattle minimum wage: Effective January 1, 2027, the City of Seattle’s minimum wage rate increases to $22.14 per hour for all employers (up from $21.30 per hour). Seattle’s minimum wage rate applies to all nonexempt employees for all hours they work within the City limits.
Employers are required to provide an individual 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 can be found on Seattle’s wage theft ordinance webpage. If you plan to adjust wages to meet minimum wage increases, make sure you notify any affected workers. You must also display a workplace poster. You can download a 2027 version of the required Seattle workplace poster now and you should also receive a copy in the mail from the Office of Labor Standards if you hold a Seattle business license.
Unincorporated King County minimum wage: Effective January 1, 2027, the minimum wage rate in unincorporated King County will increase to $21.57 per hour (up from $20.82 per hour) for many employers. Employers with 15 or fewer employees and an annual gross revenue of less than $2 million may pay up to $2.00 less, or $19.57 per hour. You must display a poster with the minimum wage where employees can see it, but the 2027 version of the poster isn’t yet available.
Tips: If your employees are subject to a local minimum wage that is higher than the Washington statewide rate, you must pay the higher amount. While written notice of these pay increases isn’t required except for employees in Seattle and unincorporated King County, advance written notice is certainly the 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.
Members, if you have questions about which rates apply to your employees or whether they are exempt from overtime, contact your Vigilant Law Group employment attorney.
