Washington State Minimum Wage to Increase January 1, 2021
Effective January 1, 2021, Washington’s minimum wage will increase to $13.69 per hour. The 2020 changes to the Washington Minimum Wage Act included an automatic annual increase to the salary basis test for overtime exempt employees that is tied to the minimum wage. Therefore, effective January 1, 2021, the minimum guaranteed salary for overtime exempt employees will likewise increase.
The following chart illustrates the Salary Threshold as Multipliers of Minimum Wage.
| Employer Size | ||
|---|---|---|
| Effective Date | 1-50 Employees | 51+ Employees |
| July 1, 2020 | 1.25x | 1.25x |
| January 1, 2021 | 1.5x | 1.75x |
| January 1, 2022 | 1.75x | 1.75x |
| January 1, 2023 | 1.75x | 2.0x |
| January 1, 2024 | 2.0x | 2.0x |
| January 1, 2025 | 2.0x | 2.25x |
| January 1, 2026 | 2.25x | 2.25x |
| January 1, 2027 | 2.25x | 2.5x |
| January 1, 2028 | 2.5x | 2.5x |
With the increase in the minimum wage, the new salary threshold for overtime exempt employees will be $42,712.80 for employers with 50 or fewer employees and $49,831.60 for employers with more than 50 employees.
The hourly rate for exempt Computer Professionals will also increase with the new minimum wage. The following chart illustrates the hourly basis rates for Computer Professionals.
| EMPLOYER SIZE | July 1, 2020 | January 1, 2021 | January 1, 2022 |
|---|---|---|---|
|
1-50 Employees |
$27.63 per hour | Minimum wage x 2.75 | Minimum wage x 3.5 |
|
51+ Employees |
Minimum wage x 2.75 | Minimum wage x 3.5 | Minimum wage x 3.5 |
With the Washington state minimum wage increasing to $13.69 per hour effective January 1, 2021, the hourly basis rate for Computer Professionals will increase to $37.65 for employers with 50 or fewer employees and $48.65 for employers with more than 50 employees.
As a reminder, employers must comply with the law that is most generous to the employee. The Washington salary threshold will be higher than the salary threshold under Federal law ($684 per week) as of January 1, 2021 and therefore, Washington employers must comply with the increased salary thresholds under Washington law summarized above.