This week, Washington announced the state’s minimum wage will increase from $13.50 per hour to $13.69 per hour effective January 1, 2021.
In addition to the minimum wage increase for non-exempt employees, the state’s salary threshold amount for employees who are classified as exempt will increase effective January 1, 2021:
- Small businesses (1 – 50 employees): An exempt employee must earn a salary of at least 1.5 times the minimum wage, or $821.40 a week ($42,712.80/year).
- Large businesses (51+ employees): An exempt employee must earn a salary of at least 1.75 times the minimum wage, or $958.30 a week ($49,831.60/year).
The state’s new salary threshold for exempt employees will be higher in 2021 than the current Federal minimum threshold of $684 per week ($35,568 annually) and WA employers must comply with the higher state salary threshold amount.
Washington’s minimum hourly rate for exempt computer professionals who are paid by the hour will increase on January 1, 2021, as well. Small employers (1 – 50 employees) must pay these computer professionals at least $37.65 per hour and large employers (51+ employees) must pay these computer professionals at least $47.92 per hour. This rate only applies to computer professionals who are paid by the hour. If a computer professional is compensated on a salary basis they should receive at least the salary threshold amount detailed above.