June 2024

State Updates

 

Washington 2023 minimum wage rate and overtime salary threshold announced

11/03/22

Author: ADP Admin/Tuesday, November 1, 2022/Categories: Compliance Corner , State Compliance Update, Washington

The Washington Department of Labor & Industries (WDOL) has announced  an increase to the state’s minimum wage as well as revised overtime exemption salary thresholds.  

The Details: 

Effective Jan. 1, 2023, the state minimum wage rate will increase from $14.49 per hour to $15.74 per hour. Workers who are 14 or 15 years old may be paid 85% of the adult minimum wage. This is an increase from $12.32 per hour to $13.38 per hour.  Washington state does not permit the use of a tip credit in paying tipped employees.

 

In addition, the overtime exemption salary thresholds which are based on the state minimum wage will also increase effective Jan. 1, 2023. 

 

For both small businesses (one to 50 employees) an exempt employee must earn a salary of at least 1.75 times the minimum wage, or $1,101.80 a week ($57,293.60 per year).

 

For large employers (51 or more employees), an exempt employee must earn a salary of at least 2.0 times the minimum wage, or $1,259.20 a week ($65,478.40 per year).

 

Finally, the WDOL announced that in order to qualify for the overtime exemption, computer professionals employed by businesses (regardless of size), must earn a salary of at least 3.5 times the minimum wage ($55.09 per hour).

 

Next Steps:

As of Jan. 1, 2023, Washington state employers must pay at lease the minimum wage as outlined above.

In addition, employers must post this notice “where employees can read it.”

Have Questions?

Please contact your dedicated service professional with any questions.   

Number of views (3299)/Comments (0)

Recent State Updates

 

© Copyright 2016 ADP LLC. 10200 Sunset Drive | Miami, FL 33173

The ADP logo, ADP, ADP TotalSource and a more human resource. are registered trademarks of ADP, LLC. All other trademarks and service marks are the property of their respective owners.