Washington’s minimum wage will increase 3.5% to $17.73 per hour on Jan. 1, 2027, according to the Washington State Department of Labor & Industries (L&I). The new rate raises the current minimum of $17.13 and is calculated using changes in the federal Consumer Price Index for Urban Wage Earners and Clerical Workers.
The increase also affects overtime exemptions, youth wages, and other workplace requirements. Local governments may set higher minimum wages, and several jurisdictions, including Seattle, SeaTac, Tukwila, Renton, Bellingham, Everett, Burien, and unincorporated King County, currently have rates above the state minimum. The federal minimum wage remains $7.25 per hour.
Beginning in 2027, large employers with 51 or more employees must pay qualifying executive, administrative, professional and certain computer employees at least $1,773 per week, or $92,196 annually, to classify them as exempt from overtime. This reflects an increase in the salary multiplier from 2.25 to 2.5 times the state minimum wage. For employers with 50 or fewer workers, the multiplier remains 2.25, setting the annual salary threshold at $82,976. The small-business multiplier is scheduled to increase in 2028. Qualifying exempt computer professionals paid hourly must receive at least $62.06 per hour, regardless of employer size.
Employers may pay workers ages 14 and 15 at 85% of the state minimum wage. Their minimum rate will rise to $15.07 per hour in 2027.
Minimum pay requirements for rideshare drivers will also change Jan. 1. For trips within Seattle, the minimum will be 72 cents per passenger platform minute and $1.69 per passenger platform mile, or $6.34 per trip, whichever is greater. Outside Seattle, the rates will be 41 cents per minute and $1.43 per mile, or $3.68 per trip, whichever is greater.
Separately, Washington will prohibit non-compete clauses beginning in July 2027. During the first half of the year, salary thresholds for enforcing such agreements will be $131,326 for employees and $328,316 for independent contractors.
