Starting January 1, 2022, the Washington state minimum wage will be $14.49 per hour. This is a 5.83 percent increase from the current 2021 minimum wage of $13.69 per hour.
Because the salary threshold for exempt employees in Washington is tied to a multiple of the minimum wage, the exempt salary threshold for all employers, regardless of size, with Washington-based employees in 2022 will increase to $52,743.60 (or $1,014.30 per week).
How Washington State Calculates Minimum Wage
Even though Washington state's minimum wage and exempt salary thresholds are already among the highest in the United States, state law requires an automatic annual inflation adjustment based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Each September, the state Department of Labor & Industries compares the CPI-W from August of the previous year to the index for August of the current year. The year over year increase from 2020 to 2021 during this period was 5.83 percent.
Consequently, employers that have Washington based employees need to make the appropriate salary adjustments in 2022 for employees whose rate of pay is at or close to the minimum hourly wage or the minimum salary threshold.
Considerations for Employee Reclassification
Given the significant increase in the exempt salary threshold for employers of all sizes across all industries, it is likely that a number of employers will consider reclassifying current exempt employees as non exempt employees...
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