On January 1, 2025, revised thresholds under labor law in Washington will take effect as described below. Employers are encouraged to review applicable items and revise documents and policies based on the new standards.
1. Minimum Wage
The Washington minimum wage will be $16.66 per hour in 2025, an increase of 38 cents (2.35%) from $16.28 in 2024. In Seattle, SeaTac, and Tukwila, however, the higher amounts than the state minimum wage will apply as follow:
- Seattle: $20.76 per hour. Unlike previous years, payments toward employee medical benefits or customer tips paid to employees cannot be part of the minimum wage.
- SeaTac: $20.17 per hour (applicable to hospitality and transportation industry employees).
- Tukwila:
- Large Employer (more than 500 employees): $21.10 per hourMid-Size Employer (15~500 employees): $20.10 per hour. Effective July 1, 2025, this minimum wage will increase to $21.10 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
The thresholds for overtime exempt/nonexempt employees will also increase due to the increase of the minimum wages. The salary thresholds for overtime exempt employees will apply as follows:
- 50 employees or less: $1,302.40 per week (annual salary of $69,305.60) (2 times of minimum wage)
- 51 employees or more: $1,499.40 (annual salary of $77,968.80) (2.5 times of minimum wage)
Computer professionals may qualify as overtime employees exempt even if they are paid hourly. The 2025 threshold under this category is $58.31, 3.5 times the minimum wage.
Reference: Changes to Overtime Rules in 2020: Washington State and Federal Laws
3. Noncompetition Enforceability Thresholds
Imposing noncompete obligations on workers in Washington requires certain conditions to be met. 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, 2025, the annual earning threshold will increase from $120,559.99 to $123,394.17 for employees, and from $301,399.98 to $308,485.43 for independent contractors.
Reference: Washington’s New Noncompetition Law Takes Effect in 2020
4. Paid Family and Medical Leave Premium
Effective January 1, 2025, the premium rate in Washington Family and Medical Leave Program will increase from 0.74% to 0.92%. The ratio of employer/employee contribution will also change from 28.57% and 71.43% to 28.48% and 71.52%.
An employer with fewer than 50 employees is not obligated to pay the employer portion, 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. In 2025, the maximum amount that premiums can be deducted from wages is $176,100. 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 state announced that letters to employers regarding the change were mailed in late October 2025.
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.
Reference: Washington Paid Family & Medical Leave Program will Start in 2019
5. Workplace Posters
Employers need to display their applicable workplace posters in a location where employees can easily see and read them as required by federal and state laws and local ordinances. Workplace posters are available on the website of the agency that administers the law or ordinance. For example, a 2025 poster for the Family and Medical Benefits Program administered by the Washington Employment Security Department is available on the program’s website. Also, a workplace poster listing Seattle’s labor standards has been revised for 2025 and posted on the city’s website. The Seattle workplace poster is available in English and has been translated into many languages, including a Japanese version. Employers are encouraged to check the workplace posters that apply to their entity and obtain and post revised posters as needed.
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