Every fall, Washington employers get one number they cannot plan payroll without: the next year’s minimum wage. Here is what is coming, when, and why it also quietly resets a second threshold that catches salaried employers off guard.
The mechanics of the annual increase
Washington’s minimum wage is adjusted for inflation every year. Under the Minimum Wage Act, the Department of Labor & Industries (L&I) recalculates the rate based on the federal Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), announces the new rate on or about September 30, and the new wage takes effect January 1. For reference, the 2026 minimum wage is $17.13 per hour, up from $16.66 in 2025.
Why this is a two-part number
The minimum wage does more than set the floor for hourly pay. Washington’s salary threshold for “white-collar” overtime exemptions is calculated as a multiple of the state minimum wage, so when the minimum wage rises, the minimum salary required to keep an employee exempt from overtime rises with it. An employee you treat as salaried-exempt today can fall below the line on January 1 if their salary is not adjusted. Employers should plan for both numbers at once.
Local rates can be higher
The state figure is a floor, not a ceiling. Several cities set their own, higher minimum wages—Seattle’s 2026 rate is $21.30 per hour—and those local rates apply to hours worked within city limits. If your employees ever work in Seattle, Tukwila, Renton, Burien, Everett, SeaTac, Bellingham, or unincorporated King County, check the local rate, not just the state rate.
What to do
- Watch for L&I’s announcement on or around September 30 and update payroll before January 1.
- At the same time, recheck every salaried-exempt employee against the new salary threshold and raise salaries or reclassify as needed.
- If any employee works in a city with a higher local minimum wage, apply that rate to the hours worked there.
- Update your posted workplace notices for the new year.
If you have questions about minimum wage and overtime compliance, you can reach us at martinkreshon.com or call (206) 929-0609. You can also find reviews for Martin on Google and Avvo.