Washington’s minimum wage is going up to $16.28 an hour next year, a 3.4 percent increase over 2023.
The Washington State Department of Labor & Industries (L&I) has announced a minimum wage increase set to take effect on January 1, 2024.
In accordance with state law, L&I determines the upcoming year’s minimum wage by referencing the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) provided by the federal Bureau of Labor Statistics (BLS). This calculation involves comparing the CPI-W index from August of the prior year to that of the current year.
In 2023, Washington boasts the highest state-level minimum wage in the United States, while the federal minimum wage stands at $7.25 per hour.
Notably, cities in Washington have the authority to set minimum wages above the state’s standard, and Seattle, SeaTac, and Tukwila have already enacted higher wage rates.
The state minimum wage is applicable to workers aged 16 and older. State regulations allow employers to pay 85 percent of the minimum wage to workers between the ages of 14 and 15. In 2024, the wage for the younger group will be set at $13.84 per hour.
For further information regarding the minimum wage, including details about overtime, rest breaks, meal periods, and the procedure for filing a salary complaint, please refer to L&I’s website. Additionally, a poster containing information about the 2024 income is accessible in 15 different languages.
The rise in the state minimum wage has various implications for workers.
For employees exempt from overtime
L&I also determines updated lowest salary thresholds for employees exempt from overtime pay, based on changes in the minimum wage. This adjustment impacts the required minimum salary for executive, administrative, and professional workers, as well as computer professionals and outside salespeople, to qualify for exemption from overtime pay regulations.
In 2024, employers must meet a threshold of twice the income. This translates to an exempt employee needing a minimum weekly salary of $1,302.40 (equivalent to $67,724.80 annually).
L&I introduced updated rules in 2020 for exempt workers, establishing an eight-year implementation plan that gradually increases the multiplier to 2.5 times by 2028. The rate of increase varies according to the employer’s size.
According to the same regulations, exempt computer professionals have the option of being compensated on an hourly basis rather than through a salary. The hourly rate for these professionals is set at 3.5 times, which equates to $56.98 per hour for the year 2024.
Minimum pay for rideshare drivers
Starting on January 1, the minimum earnings for drivers working with transportation network companies such as Lyft and Uber will increase. This minimum pay requirement is one of the additional rights and safeguards established for TNC drivers through legislation passed in 2022.
- For rides within Seattle, drivers will earn a rate of 66 cents per passenger platform minute and $1.55 per passenger platform mile, with a minimum of $5.81 or whichever amount is higher.
- For trips outside of Seattle in 2024, drivers will earn 38 cents per passenger platform minute and $1.31 per passenger platform mile, with a minimum of $3.37 or whichever amount is higher.
Investigations into Wage Complaints
L&I is responsible for upholding Washington state’s wage and hour regulations and handling investigations into wage-related grievances. Workers can submit a complaint regarding their rights online, download a form for mailing to the agency, or visit a nearby L&I office to file a complaint
Source: L&I