Retailers should keep Washington’s overtime salary threshold in mind as they plan 2027 budgets. Beginning January 1, 2027, the minimum salary required for certain overtime-exempt employees is scheduled to increase.
Washington’s overtime exemption salary threshold is tied to the state minimum wage and is calculated as a multiplier of a 40-hour workweek. Employees must generally meet both the salary threshold and applicable duties tests to qualify as exempt from overtime.
For 2027, the projected salary thresholds are:
- Small employers, 1–50 employees: $1,583.10 per week, or $82,321.20 annually
- Large employers, 51 or more employees: $1,759.00 per week, or $91,468.00 annually
This is an important reminder for retailers reviewing compensation, staffing, and budget plans for the coming year. Employers should review exempt employee salaries ahead of January 1, 2027, to determine whether adjustments may be needed.
