On January 1st, employers in Washington State will have a new minimum wage and salary threshold to adhere to. Archbright is here to support our members who are navigating this change and we’re happy to help you find the best solution for your organization.
For 2027, small employers (up to 50 employees) will be required to pay 2.25x the minimum wage or $1,595.70/week ($82,976.00/year). Large employers (with 51 or more employees) will be required to pay 2.5x the minimum wage or $1,773/week ($92,196.00/year). For large employers, this will be the final jump before staying at the 2.5x multiplier in future years. For 2028, small employers will make one more jump up to the 2.5x rate. After that, it will adjust along with the minimum wage rate only.
Any employee working in Washington state as an exempt executive, administrative, or professional will need to meet the new salary thresholds to retain those exemptions. If an employee makes less than the new threshold, they will qualify for overtime pay.
There are a few important things to keep in mind as you consider your options. Bonuses, commissions, and benefits do not count toward the salary threshold. It must be a guaranteed salary. Part-time arrangements are also subject to the threshold, so an employee must meet the full salary threshold even if they are not a full-time employee
More than Job Title goes into whether an employee can be considered exempt. It is less about the job title and more about the task they complete. Members with legal hours are encouraged to have our attorneys review job descriptions to determine if an employee can be considered exempt.
Savvy organizations are starting right now to be organized and ready to enact these changes on January 1st, 2027. Washington employers should be gathering information on:
It is worth noting that for many organizations, the most complicated part of this change will be communicating it to your team. Some employees may dislike the idea of tracking their time and sticking to a stricter schedule. How you communicate these changes will be important to preserve your company culture. Archbright advisors can provide support as you navigate those complex conversations.
At Archbright, we’ve been helping PNW employers navigate changing laws and regulations since 1936. Our team of experts is standing by to support you and help you make confident decisions on how to handle these salary threshold changes for your organization.
Our experienced HR Advisor team is available to help answer your questions from 8am-5pm, Monday-Friday. Members can reach out on the HR Hotline or Advisor Chat to get in touch.
Available on-demand in the Resource Library we have several related documents that can help you determine what changes you need to make.
If you need additional support our team can help get you where you need to be. Contact us at info@archbright.com to inquire about additional communications, strategy, or legal support to aid this transition.