Washington Minimum Wage 2026: Statewide and Seattle Rates

1. Statewide Minimum Wage

Washington's statewide minimum wage is $16.28 per hour as of 2025. This applies to all employees working in the state, regardless of employer size, industry, or whether the employee receives tips.

Washington has maintained one of the highest minimum wages in the nation for over a decade. For context, the federal minimum wage remains at just $7.25 per hour — unchanged since 2009. That means Washington's minimum wage is more than double the federal floor.

Washington voters approved Initiative 1433 in 2016, which raised the minimum wage incrementally and established the annual CPI-based adjustment mechanism that keeps the rate climbing each year. Since then, the minimum wage has increased every January 1.

History of Washington Minimum Wage Increases

2. Annual CPI Adjustment

Starting in 2020, Washington's minimum wage has been automatically adjusted each year based on inflation using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Here is how the process works:

1. Each September, the Department of Labor & Industries (L&I) calculates the new rate based on the change in the CPI-W from the preceding year.
2. The new rate is announced publicly by September 30.
3. The adjusted rate takes effect the following January 1.
4. The rate is rounded to the nearest cent.
5. Critically, the minimum wage cannot decrease even if the CPI goes down — it can only stay the same or increase.

This automatic adjustment mechanism is significant for employers because it means you must check the new rate every fall and update your payroll systems before January 1. Failing to adjust wages on time is a violation of state law.

3. Seattle Minimum Wage

Seattle has its own minimum wage ordinance that exceeds the statewide rate. The Seattle minimum wage is among the highest in the United States and varies based on employer size and whether the employer provides medical benefits or the employee earns tips.

Seattle Minimum Wage Rates (2025)

Note that Seattle's ordinance counts all employees worldwide, not just those working in Seattle. If you are a franchise of a company with 500+ total employees across all locations, you are treated as a large employer under Seattle's ordinance.

Seattle's minimum wage also adjusts annually based on CPI, typically announced in the fall for the following January 1.

4. Other Local Minimum Wages

Several other cities in the Puget Sound region have enacted their own local minimum wage ordinances that exceed the state rate. Employers operating in these jurisdictions must pay whichever rate is higher.

Local Minimum Wage Rates (2025)

5. No Tipped Credit

This is one of the most important distinctions for Washington employers, especially in restaurants and hospitality:

This is a major difference from federal law. Under the federal Fair Labor Standards Act (FLSA), employers can pay tipped employees as little as $2.13 per hour as long as tips bring the employee's total compensation up to the federal minimum wage of $7.25. Washington does not allow this practice.

What This Means for Employers

• Restaurants and bars: You must pay servers and bartenders the full $16.28/hr (or the applicable local rate) before tips.
• Hotels: Housekeepers, bellhops, and other tipped hotel workers receive full minimum wage plus tips.
• Delivery and gig workers: When classified as employees, they receive full minimum wage regardless of tips or gratuities received.
• Tip pooling: Washington allows tip pooling among employees, but employers and managers cannot participate in tip pools.
• Service charges: Service charges are not the same as tips. If you add a mandatory service charge, you must clearly disclose how it is distributed.

This no-tipped-credit rule applies statewide and in all local jurisdictions within Washington. There are no exceptions, regardless of the amount of tips an employee receives.

6. Youth and Training Wages

Washington allows very limited exceptions to the minimum wage for young and new workers:

• Workers under age 16: May be paid 85% of the state minimum wage ($13.84/hr based on the $16.28 rate). This applies only to the statewide rate — local rates may have different rules.
• Workers age 16–17: Employers may pay 85% of the minimum wage for the first 90 calendar days of employment. After 90 days, the full minimum wage applies.
• Student workers: Some certified programs allow a sub-minimum wage, but these are very limited and require a special certificate from L&I.

In practice, these exceptions are rarely used by most employers. The administrative burden of tracking different rates and the competitive labor market in Washington mean most employers simply pay the full minimum wage to all workers.

Seattle's ordinance does not provide a youth wage exception — all workers in Seattle must be paid the full Seattle minimum wage regardless of age.

7. Salary Threshold for Exempt Employees

Washington has its own salary threshold for determining whether salaried employees are exempt from overtime requirements. This threshold is higher than the federal level and is calculated as a multiplier of the state minimum wage.

How the Washington Salary Threshold Is Calculated

The Washington salary threshold for overtime exemption is based on a multiplier applied to the state minimum wage:

• Large employers (51+ employees): The salary threshold is 2x the state minimum wage for a 40-hour workweek. Based on the $16.28/hr rate, this comes to approximately $1,302.40/week or $67,724.80/year.
• Small employers (1–50 employees): The threshold is 1.75x the state minimum wage, approximately $1,139.60/week or $59,259.20/year.

These thresholds apply to the executive, administrative, and professional (EAP) exemptions under Washington's Minimum Wage Act. An employee must meet both the salary threshold and the duties test to qualify as exempt.

2026 Thresholds

The 2026 salary thresholds will be announced by L&I after the 2026 minimum wage rate is determined in September 2025. Because the threshold is tied directly to the minimum wage, any increase in the minimum wage automatically raises the salary threshold as well.

8. Enforcement

Washington's minimum wage laws are enforced by the Department of Labor & Industries (L&I). The agency takes wage violations seriously and has significant enforcement authority.

Complaint Process

1. An employee (or former employee) files a wage complaint with L&I, either online or by mail.
2. L&I investigates the complaint, which may include requesting payroll records from the employer.
3. If a violation is found, L&I issues a citation and notice of assessment.
4. The employer may appeal the citation within 30 days.

Penalties for Violations

• Back pay: The employer must pay all unpaid wages owed to the employee.
• Interest: Interest accrues on unpaid wages from the date they were due.
• Penalties: L&I may assess penalties of up to double the unpaid wages (known as liquidated damages).
• Repeat violations: Employers who repeatedly violate minimum wage laws face escalating penalties and potential criminal prosecution.
• Retaliation protections: It is illegal to retaliate against an employee for filing a wage complaint. Retaliation can result in additional penalties.

Employees may also file a private lawsuit in addition to (or instead of) filing a complaint with L&I. In a successful private action, the employee may recover unpaid wages, interest, liquidated damages, and attorney fees.

9. Comparison with Other States

Washington consistently ranks among the top states for minimum wage. Here is how it compares to neighboring states and the federal rate:

Key takeaways from this comparison:

• Washington and California are in a virtual tie for the highest statewide minimum wage in the country.
• Washington, California, and Oregon are all no-tip-credit states — a rare and employee-protective position.
• The contrast with neighboring Idaho (which uses the federal $7.25 rate) is stark and affects cross-border employment decisions.
• Seattle's $20.76/hr rate for large employers is among the highest local minimum wages in the entire country.

10. Frequently Asked Questions