The Department of Labor & Industries announced an increase in the state minimum wage to $16.24/hour, effective January 1, 2024. Washington’s minimum wage is annually adjusted to inflation and is among the highest state minimum wages in the United States. The minimum wage for 14- to 16-year-olds will also be adjusted to $13.84/hour in 2024. Some cities have set higher local minimum wages.
The $0.50 increase next year is smaller than last year’s increase likely because inflation has decreased since this time last year. You can find more information and resources on Washington’s minimum wage here.
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 2024 threshold will be 2x the minimum wage, or at least $1,302.40/week ($67,724.80/year), to avoid overtime.
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. Login to access the guide and other materials.