Employers need to prepare for a higher state minimum wage starting on January 1, 2021.

Next year’s minimum wage in Washington State will be $13.69 compared to $13.50 this year, which is currently the nation’s highest minimum wage, Labor & Industries (L&I) announced. This is the last year of a phased-in increase in minimum wages because of I-1433, which voters approved. The result is that 2021 will be the first year that the state minimum wage will return to being adjusted by inflation.

The cities of Seattle and SeaTac have higher minimum wages adjusted by inflation, but as of this writing they had not announced minimum wages for 2021.

Also, Washington’s new overtime rules for executive, administrative, and professional employees are tied to the state minimum wage, the Washington Research Council reports. Given the announcement about 2021 minimum wages, beginning Jan. 1, 2021, the new overtime salary threshold will be $42,712 for employers with 1–50 employees and $49,831 for employers with more than 50 employees. The salary thresholds will increase until fully phased in in 2028. L&I has updated its implementation schedule to reflect the 2021 minimum wage.

Click here to see a table of minimum wages by state.

Source: Washington Research Council