Minimum Wage and Salary Thresholds for Overtime Exempt Workers – 2021 Washington

2020-12-13

Effective January 1, 2021, the Washington’s minimum wage will increase to $13.69 per hour, rising from the current $13.50 per hour.  Due to the change, the 2021 salary thresholds for overtime exempt workers will be modified from the projected amounts previously announced by the Department of Labor and Industries (click the link below for details); specifically, the thresholds will be $821.40 per week ($42,712 annually) for employees who work for employers with 50 or less employees, and $958.30 per week ($49,831 annually) for employees of businesses with more than 50 employees, as described in the following schedule: 

  Effective Date 2020/7/1 2021/1/1 2022/1/1 2023/1/1 2024/1/1 2025/1/1 2026/1/1 2027/1/1 2028/1/1
Employers with 1-50 Employees Minimum Wage Multiplier 1.25 1.5 1.75 1.75 2 2 2.25 2.25 2.5
Weekly ($) 675 821.40 975 987 1,137 1,152 1,308 1,334 1,512
Annual ($) 35,100 42,712 50,700 51,324 59,124 59,904 68,016 69,368 78,624
Employers with 50+ Employees 1.25 1.75 1.75 2 2 2.25 2.25 2.5 2.5
Weekly ($) 675 958.30 975 1,128 1,137 1,296 1,308 1,482 1,512
Annual ($) 35,100 49,831 50,700 58,656 59,124 67,392 68,016 77,064 78,624

The following schedule applies to computer professionals:

Effective Date 7/1/2020 1/1/2021 1/1/2022
Employers with 1-50 Employees $27.63 per hour $37.65/hour x 2.75 (TBD) x 3.5
Employers with 50+ Employees $37.13/hour x 2.75 $47.92/hour x 3.5 (TBD) x 3.5

Seattle’s minimum in 2021 will be $16.69 per hour.  However, if the number of employees is 500 or less, and if employers pay at least $1.69 per hour for the employees’ medical benefits and/or the employees earn at least $1.69 per hour in tips, the minimum wage of $15.00 will apply.

In SeaTac, the 2021 minimum wage for transportation and hospitality workers will be $16.57 per hour, increasing from the current $16.34 per hour.

Employers are recommended to review their employees’ wages and/or salaries and their status of overtime exempt or non-exempt under the new minimum wage(s) and overtime pay thresholds.

ReferenceChanges to Overtime Rules in 2020: Washington State and Federal Laws

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