Minimum Wage

Washington’s Minimum Wage

Starting January 1, 2025, the minimum wage in Washington State is increasing to $16.66 per hour. You can find additional information regarding minimum wage rates on the Washington State Department of Labor & Industries (L&I) website: https://www.lni.wa.gov/workers-rights/wages/minimum-wage/ 

Local Minimum Wage Requirements

Several cities are implementing higher local minimum wages starting January 1, 2025. Employers in these areas should ensure compliance with city-specific regulations, including notice and certification requirements.

Seattle

The minimum wage rate in Seattle will increase to $20.76 per hour for all employers. Small employers will no longer be allowed to count tips and/or payments toward an employee’s medical benefit plan toward an employee’s minimum compensation requirements under Seattle’s Minimum Wage Ordinance. This ordinance applies to each hour an employee works within the boundaries of the City of Seattle. An employee who is typically based outside of Seattle and performs work in Seattle on an occasional basis is covered by this ordinance in a two-week period only if the employee performs more than two hours of work for an employer within Seattle during that two-week period. Once an employee who works in the City on an occasional basis performs more than two hours of work for an employer within the City during a two-week period, payment for all time worked in the City during that two-week period shall be made in compliance with the ordinance.

See the City of Seattle website for additional information: https://www.seattle.gov/laborstandards/ordinances/minimum-wage.

Tukwila

The minimum wage rate in Tukwila is increasing depending on employer size. The ordinance applies to employees who perform work within the City of Tukwila.

Large employers (more than 500 employees, regardless of where those employees are employed, and all franchisees associated with a franchisor or a network of franchises with franchisees that employ more than 500 employees in the aggregate): The minimum wage rate in Tukwila increases to $21.10 per hour on January 1, 2025 for large employers.

Other Covered Employers (15 to 500 employees, regardless of where those employees are employed, or over $2 million of annual gross revenue in Tukwila): The minimum wage rate in Tukwila increases to $20.10 per hour on January 1, 2025 for mid-size employers. On July 1, 2025, mid-size employers must increase their minimum wage rate to $21.10 per hour.
See the City of Tukwila website for additional information: https://www.tukwilawa.gov/departments/finance/minimum-wage-and-fair-access-to-additional-hours-of-work/#posters

Renton

The minimum wage rate in Renton is increasing depending on employer size.

Mid-size employers (15 to 500 employees worldwide or over $2 million of annual gross revenue in Renton): From January 1, 2025, to June 30, 2025, the minimum wage rate will increase to $18.90 per hour for mid-size employers. From July 1, 2025, to December 31, 2025, the minimum wage rate will increase to $19.90 per hour.

Large employers (more than 500 employees worldwide and certain franchises): On January 1, 2025, the minimum wage rate will increase $20.90 per hour for large employers.
See the City of Renton website for additional information: https://www.rentonwa.gov/city_hall/finance/2024_labor_standards

Bellingham

From January 1, 2025, to April 30, 2025, the minimum wage rate in Bellingham will increase to $17.66 per hour. From May 1, 2025, to December 31, 2025, the minimum wage rate in Bellingham will increase to $18.66 per hour. Every year after, starting in 2026, the city minimum wage will be set at $2.00 above the applicable Washington state minimum wage effective on January 1 every year. For additional information, see the City of Bellingham website: https://cob.org/services/business/city-minimum-wage

Burien

The minimum wage rate in Burien is increasing depending on employer size. The local ordinance applies to each hour employees work within Burien. An employee who is based outside of Burien and performs work in Burien on an occasional basis is covered by this ordinance in a two-week period only if the employee performs more than two hours of work for an employer within Burien during that two-week period. Once an employee who occasionally works in Burien performs more than two hours of work for an employer within Burien during a two-week period, payment for all time worked in Burien during that two-week period shall be made in compliance with the requirements of this ordinance.

Level 1 employers (all employers, including franchisees, that employ more than 500 full-time employees in King County or franchisors who employ more than 500 full-time employees in the aggregate): On January 1, 2025, level 1 employers must pay employees an hourly minimum wage of at least $4.50 over the Washington state hourly minimum wage.

Level 2 employers (all employers, including franchisees, that employee 21-499 full-time employees in King County): On January 1, 2025, level 2 employers must pay employees an hourly minimum wage of at least $3.50 over the Washington state hourly minimum wage.

Level 3 employers (employers with 20 or fewer full-time employees): Level 3 employers are exempt from this ordinance.
See the City of Burien’s website for additional information: https://www.burienwa.gov/city_hall/laws_regulations/minimum_wage

SeaTac

The minimum wage rate in SeaTac will increase to $20.17 per hour for Hospitality and Transportation workers. The local ordinance applies to certain employers who operate within SeaTac. See the City of SeaTac Announcement for additional information: https://www.seatacwa.gov/home/showpublisheddocument/38011/638634620180370000

Exempt Employees – Salary Thresholds

The minimum pay a salaried worker must receive to be considered exempt from Washington’s Minimum Wage Act is calculated as a multiplier of state minimum wage for a 40-hour workweek. Therefore, with the Washington State minimum wage increasing, the salary threshold for exempt employees is also increasing. See L&I’s Salary Threshold Implementation Schedule for additional information: https://www.lni.wa.gov/forms-publications/f700-207-000.pdf

Small Employers (1-50 employees): the salary threshold for exempt employees in 2025 is $1,332.80 per week ($69,305.60 a year)

Large Employers (51 or more employees): $1,499.40 per week ($77,968.80 a year)

The above rates do not apply to computer professionals paid by the hour who have higher minimum wage multipliers. Computer professionals paid an hourly rate rather than the salary required for most exempt employees must be paid an hourly rate of 3.5 times the state minimum wage, regardless of employer size, to qualify as exempt (among other requirements). For 2025, that will be $58.31 per hour.

Non-Compete Clauses – Salary Thresholds

In Washington, the salary threshold for enforceable non-compete agreements also increases annually based on inflation. In 2025, the minimum annual salary threshold for a non-compete clause or contract to be enforceable is $123,394.17 for employees and $308,485.43 for independent contractors. See the L&I website for additional information: https://www.lni.wa.gov/workers-rights/workplace-policies/non-compete-agreements

For more information, please contact any employment law attorneys at Montgomery Purdue.