by
<a href="mailto:candiceb@awcnet.org">Candice Bock</a>, <a href="mailto:jacobe@awcnet.org">Jacob Ewing</a> | Oct 02, 2020
Starting January 1, 2021, the state’s minimum wage will increase to $13.69 per hour.
Starting January 1, 2021, the state’s minimum wage will increase to $13.69 per hour.
Since 2016, minimum wage increases were mandated by Initiative 1433. In contrast, the 2021 increase is based on a 1.39% increase in the Consumer Price Index over the past 12 months.
The new minimum wage could also impact salaried professionals. Under updated overtime rules that went into effect July 1, an
exempt employee must earn over a certain threshold based on a multiplier of the minimum wage. For 2021, these thresholds are:
- For small employers with 1-50 employees, an exempt employee must earn a salary of at least 1.5 times the minimum wage, or $821.40 a week ($42,712.80/year).
- For large employers with 51 or more employees, an exempt employee must earn a salary of at least 1.75 times the minimum wage, or $958.30 a week ($49,831.60/year).
Because the state’s 2021 exempt employee thresholds are more favorable than the federal threshold of $684/week ($35,568/year), Washington employers will need to follow the state’s thresholds in 2021. City management staff can access AWC’s Public Employer Overtime Guide here.
As part of its education and outreach efforts, L&I is offering webinars to help employers and employees understand the rule changes. The webinar begin with a 45-minute presentation by outreach specialists from L&I’s Employment Standards program, followed by 30 minutes for questions and answers. You can register at L&I’s calendar of workshops, events and webinars. Look for “Overtime Exemptions Training Sessions (Webinar)” in the “Event Title” pull down menu.
L&I has also developed an array of digital tools. They include an online course plus facts sheets, case examples, technical documents, and threshold implementation charts that can be found at L&I’s overtime resource center web page.
Complete information about the minimum wage is available on L&I's website, as well as details about overtime, rest breaks, and meal periods. There is also a minimum wage announcement online that employers can print and post.