2026 Salary Threshold & Minimum Wage Updates in Washington State
Megan Livres | Legal Counsel
10/3/25 12:25 PM
Washington’s Department of Labor and Industries announced that the 2026 state minimum wage will increase 2.8% next year to $17.13 per hour for workers ages 16 and older, and $14.56 per hour for workers aged 14 and 15. These changes will take effect January 1, 2026.
Local jurisdictions are also entitled to set their own minimum wage higher than the state requirement. Bellingham, Burien, Everett, Renton, Sea-Tac, Seattle, Tukwila, and unincorporated King County all have local minimum wages:
- Bellingham: All employers within the city of Bellingham, regardless of size, will be required to pay their employees at least $19.13 per hour beginning January 1, 2026. The City’s minimum wage is adjusted each year to $2.00 above the applicable state minimum wage.
- Burien: In 2026, Burien has three levels of minimum wage which will increase annually.
- Level one – All employers, including franchisees, that employ more than 500 FTEs in King County or franchisors who employ more than 500 FTE in the aggregate = $4.50 above the state minimum wage
- Level two – All employers, including franchisees, that employ 21-499 FTEs in King County = $3.50 above the state minimum wage
- Level three – All employers with 20 or fewer FTEs = exempt from the local minimum wage
- Minimum Wage - City of Burien
- Everett: Effective July 1, 2025, Everett has two levels of minimum wage depending on the size of the employer:
- Large employers: Employers with more than 500 employees = $20.24 per hour. As of January 1, 2026, and on each January 1 thereafter, the hourly minimum wage shall increase by the annual rate of inflation (i.e., one hundred percent of the annual average growth rate of the CPI-W for the twelve-month period ending in August)
- Covered Employers: As of January 1, 2026, other Covered Employers will be required to pay $1/hour less than the calculated Large Employer minimum wage after being adjusted for inflation. “Covered Employers” are those that either (1) employ at least fifteen employees regardless of where those employees are employed or (2) have annual gross revenue over $2 million.
- Minimum Wage – City of Everett
- Renton: The 2026 minimum wage that covered employers are required to pay employees has not yet been released.
- Sea-Tac: The 2026 minimum wage for employees within the hospitality and transportation industries has not yet been released.
- Seattle: Beginning January 1, 2026, the city of Seattle’s minimum wage will increase from $20.76 per hour to $21.30 per hour regardless of employer size.
- Minimum Wage – City of Seattle
- Rideshare drivers within Seattle have their own minimum wage requirements. View here.
- See additional requirements related to rideshare drivers: Transportation Network Company Drivers' Rights
- Minimum Wage – City of Seattle
- Tukwila: Beginning January 1, 2026, the City of Tukwila’s minimum wage will increase from $21.10 per hour to $21.65 per hour regardless of employer size.
- A Tukwila employer must pay this minimum wage if it has (1) 15 or more employees in aggregate worldwide (including network of franchises, chain stores, and similar businesses under a single entity); OR (2) over $2 million annual gross revenue generated in Tukwila (only one of the conditions need apply).
- The Tukwila minimum wage ordinance does not apply to employers with (1) fewer than 15 employees worldwide; AND (2) $2 million or less in gross revenue; AND (3) are not associated with a franchisor or network of franchisees that employ more than 500 employees in aggregate (all three conditions must apply to be exempt from the ordinance).
- NOTE: The 2026 Notice to Employees regarding Tukwila Labor Standards will be published in November 2025. Affected employers are required to give each employee their own copy of the notification, and a poster should be printed and displayed in common workplace areas.
- Minimum Wage - City of Tukwila
- Unincorporated King County: Beginning January 1, 2026, the minimum wage in unincorporated King County will increase from $20.29 per hour to $20.82 per hour. There will be three temporary exceptions, based on business size and gross revenue:
- Large employers: Employing 500 or more employees and gross revenue of any amount = $20.82 per hour
- Mid-sized employers: Employing 16-499 employees and gross revenue of any amount = $19.82 per hour
- Small employers:
- Employing up to 15 employees and an annual gross revenue of $2 million or more = $19.82 per hour
- Employing up to 15 employees and an annual gross revenue of less than $2 million = $18.32 per hour
- Minimum Wage - Unincorporated King County
Increase to Washington Salary Requirements for Overtime Exempt Employees
Employees exempt from the Minimum Wage Act and overtime requirements through the white-collar exemptions (executive, administrative, and professional) and computer professionals and outside salespeople are generally required to earn at least a threshold amount to be deemed exempt. The salary threshold level for 2026 is the same for small and large employers and is set at $1,541.70 per week (or $80,168.40 annually). Computer professionals paid hourly must earn at least 3.5 times the minimum wage, regardless of employer size. For 2026, that will be $59.96 per hour. The 2026 Salary Threshold Implementation Schedule can be found here.
Whether an employee is properly classified as exempt or non-exempt is dictated by the law. Non-exempt employees must be paid at least minimum wage for all hours worked. They are entitled to overtime pay for hours worked in excess of 40 in a week and are entitled to all protections and benefits guaranteed by the Minimum Wage Act, including paid sick leave. Exempt employees, on the other hand, are not entitled to overtime pay, are not required to earn at least minimum wage for all hours worked, and are not guaranteed the protections and benefits offered by the MWA. In order to be classified as exempt, an employee generally must satisfy a three-part test:
- Salary Basis: The employee must be paid a predetermined and fixed salary (certain exceptions apply). The employee’s salary may not vary based upon the quality or quantity of the employee’s work.
- Salary Level: The amount paid to the employee must meet or exceed the current threshold amount regardless of whether the individual is a full-time or part-time employee.
- Duties: The employee must perform specific duties related to executive, administrative, professional, computer professionals, and outside sales jobs as defined by law.
What amounts count as salary has not changed and continues to include those set amounts paid on a recurring basis to compensate for work performed. Washington state law does not include board, lodging, housing, bonuses, commission, and benefits as salary.
Employees who no longer meet the salary threshold requirement may not remain exempt employees. Employers are not required to increase employee wages for those who have fallen below the salary threshold unless they wish the employee to remain exempt. It is very important that employers do not misclassify non-exempt employees as exempt. Claims against employers for unpaid wages can be a costly mistake, particularly when attorney’s fees and costs are also considered.
Non-compete clauses
L&I uses the Consumer Price Index for Urban Wage Earns and Clerical Works (CPI-W) to calculate the minimum annual salary threshold for a non-compete clause or contract to be enforceable. For employees in 2026, the threshold will be $126,858.83. For independent contractors, the 2026 threshold will be $317,147.09.
If you have questions about these issues, please contact Member Care.