The Department of Labor & Industries (L&I) announced the new 2025 state minimum wage on September 30. Washington’s minimum wage is automatically inflation-adjusted each year, and the new wage of $16.66 per hour is effective January 1, 2025. For workers under age 16, the 2025 minimum wage is $14.16 per hour.
Cities can set higher minimum wages than the state minimum, and some cities have done so.
With the annual adjustment of the minimum wage, also comes the annual adjustment to the overtime exemption threshold. The overtime exemption threshold is the minimum level that salaried employees must be paid to be exempt from being paid overtime. The 2025 threshold will be 2x the minimum wage for small employers, or at least $1,332.80 per week ($69,305.60 per year), to avoid overtime. Large employers’ 2025 threshold will be 2.25x the minimum wage, or $1499.40 per week ($77,968.80 per year).
The overtime exemption threshold is calculated as a multiplier of the minimum wage, and L&I is currently in the midst of an eight-year implementation schedule to increase the multiplier to 2.5x minimum wage. Under the implementation schedule, the annual multiplier increases more quickly for large employers (51+ employees) than it does for small employers (50 or fewer employees), though all employers will eventually have 2.5x minimum wage multiplier for the overtime exemption threshold by 2028.
AWC members can learn more about Washington’s overtime rules with our Washington State Public Employer Overtime Guide. Log in to access the guide and other materials.