Effective January 1, 2024, changes to Washington labor laws will take place as described below. Employers are encouraged to review applicable items and revise documents and policies based on the new standards.
1. Minimum Wage
The minimum wage in Washington will increase from $15.74 per hour in 2023 to $16.28 per hour, an increase of 54 cents (up 3.4% from the previous year). In Seattle, SeaTac, and Tukwila, however, the higher amounts than the state minimum wage will apply as follow:
- Seattle: $19.97 per hour. The minimum wage of $17.25 per hour will apply if an employer has 500 or fewer employees and the employer provides medical benefits equal to the minimum wage of $2.72 per hour or if the employee receives the same amount in tips.
- SeaTac: $19.71 per hour (applicable to hospitality and transportation industry employees).
- Tukwila:
- Large Employer (more than 500 employees): $20.29 per hour
- Mid-Size Employer (15~500 employees): $18.29 per hour. Effective July 1, 2024, this minimum wage will increase to $19.29 per hour.
- Small-Size Employer (fewer than 15 employees worldwide, with annual gross revenue of $2 million or less, and not associated with franchise business with more than 500 employees): The state minimum wage will apply.
2. Thresholds for Exempt/Non-exempt Employees
As the minimum wages increase, the thresholds for overtime exempt/nonexempt employees also increase. The salary threshold for overtime exempt employees is $1,302.40 per week (annual salary of $67,724.80) regardless of the number of employees. Computer professionals may qualify as overtime employees exempt even if they are paid hourly. The 2024 threshold under this category is $56.98, 3.5 times the minimum wage.
Reference: Changes to Overtime Rules in 2020: Washington State and Federal Laws
3. Noncompetition Enforceability Thresholds
Washington state law requires certain conditions to be met in regard to imposing noncompete obligations on workers in the state. Each year, the Department of Labor and Industries adjusts the annual earning thresholds, which is part of the conditions, in line with inflation. Effective January 1, 2024, the annual earning threshold will increase from $116,593.18 to $120,559.99 for employees, and from $291,482.95 to $301,399.98 for independent contractors.
Reference: Washington’s New Noncompetition Law Takes Effect in 2020
4. Paid Family and Medical Leave Premium
The premium rate in Washington Family and Medical Leave Program will decrease from 0.8% to 0.74%. The ratio of employer/employee contribution will also change from 27.24% and 72.76% to 28.57% and 71.43%.
If the employer has fewer than 50 employees, the employer portion of the premium is waived, but the employer must report each employee’s total gross wages, excluding tips, to the Washington Employment Security Department (ESD). At the employer’s option, the employee contribution may be deducted in full from wages, or part or all of it may be covered by the employer. The maximum amount that premiums can be deducted from wages is $168,600 in 2024. If an employee’s premiums paid reach the deductible limit, the employer must stop collecting premiums from those employees but continue to report their wages to the ESD.
The number of employees in 2024 will be determined by the average number of employees in the third and fourth quarters of 2022 and the first and second quarters of 2023. The state announced that a letter was mailed in early October 2023, notifying applicable employers whose criteria have changed due to the change in the number of employees.
Different calculations may apply for employers that offer family and medical leave through their voluntary plan. For information about voluntary plans, please visit Washington Paid Family & Medical Leave’s website.
Additionally, starting January 1, 2024, for construction workers who have not met the 90-day paid sick eligibility threshold at the time of separation, employers are required to pay those leaving workers the balance of their accrued and unused sick leave at the end of the established pay period following their separation.
Reference: Washington Paid Family & Medical Leave Program will Start in 2019
5. Workplace Posters
The revised 2024 workplace posters for Washington State and the City of Seattle are available on their respective websites. These posters must be displayed in a location where employees can easily see and read them. Employers do not need to display these posters if employees work from home or vehicle but still need to make these posters available for them. In such cases, employers may mail these posters or email the links to the posters to their employees and instruct them to read and print them for their records.
[Washington]
- “Your Rights as a Worker”: The poster for 2024 is available from the Department of Labor and Industries as follows:
- Download from the L&I’s webpage and print the posters
- Order the posters online
- Order the posters by phone at 800-547-8367
- Email (ESgeneral@Lni.wa.gov) a request for posters
- Family and Medical Leave Program: “Paid time off. Peace of mind.” The 2024 poster for the Family and Medical Leave Program is available from the link below:
- Your role and responsibility – WA Paid Family and Medical Leave
[Seattle]
Seattle’s workplace poster describing its labor standards has been revised for 2024 and posted on the city’s website. In addition to English, this poster has been translated into multiple languages, including Japanese. The city announced that the revised poster has been mailed to businesses with Seattle business licenses.
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