Starting January 1, 2023, the Washington state minimum wage will be $15.74 per hour. This is a $1.25 increase from the current 2022 minimum wage of $14.49 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 with Washington-based employees will also increase. The exempt salary threshold for employees working for small employers (1-50 employees) increases to $57,293.60 per year, which translates to $1,101.80/week (and is a $4,550 annual increase from the 2021 threshold). The exempt salary threshold for employees working for large employers (51 or more employees) increases to $65,478.40 per year, which translates to $1,259.20/week (and is a $12,734.80 annual increase from the 2021 threshold).
Each September, the state Department of Labor & Industries compares the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from August of the previous year to the index for August of the current year. The year over year increase from 2021 to 2022 during this period was 8.66%.
Although 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 CPI-W.
Beginning January 1, 2023, employers with employees based in Washington must ensure that the hourly pay rates of their...
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