As one of the many states that have taken initiative to set their own minimum wage rates above the federal wage rate, it is incredibly important for employers to understand the differences. In 2025, employees have certain expectations when it comes to compensation. The state of Washington has enforced their own minimum wage since 1961. As an employer, understanding the ins-and-outs of minimum wage laws per state is vital for any business to succeed. In fact, Washington’s minimum wage is constantly changing, making it that much more important to stay up-to-date on with current laws and regulations.
In this article, we will discuss everything you need to know about Washington’s minimum wage, wage laws and how to stay compliant with these laws. From recent changes to the states minimum wage to wage laws, this all-in-one guide will provide you with the correct information so that you can successfully navigate the wage regulations in Washington.
- US Minimum Wage: How It Works
- Washington Minimum Wage Timeline
- Washington’s minimum wage in 2025 and beyond
- Additional Washington wage laws
- Compliance requirements for employers
- How Factorial can help you🚀
- Simplify your HR processes with Factorial’s all-in-one solution🚀
US Minimum Wage: How It Works
The minimum wage is the lowest amount of money that employers are legally allowed to pay their employees per hour. However, there is no single minimum wage in the United States. Instead, there are three tiers of minimum wage laws: federal, state, and municipal.
Federal Minimum Wage
The federal minimum wage, set by the Fair Labor Standards Act (FLSA), is currently $7.25 per hour. This is the lowest wage that any employer in the United States can legally pay their employees. However, the federal minimum wage is not always the highest minimum wage that applies to employees.
State Minimum Wage
Many states have their own minimum wage laws that are higher than the federal minimum wage. In these states, employees are entitled to the higher of the two minimum wages. As of right now, 34 states have minimum wages that are higher than the federal minimum wage.
Municipal Minimum Wage
Some cities also have their own minimum wage laws that are higher than both the federal and state minimum wages. These municipal minimum wages are typically set by the city council or by ballot initiative. There are currently over 60 U.S. cities with minimum wages that are higher than the federal minimum wage.
Ultimately, while the federal minimum wage provides a nationwide standard, the tiered structure at the state and local levels acknowledges the diverse economic landscapes across the country and allows for more localized adjustments to account for varying economic conditions.
Washington Minimum Wage Timeline
Before we look at the specific minimum wage rates that employers in the state need to comply with, let’s take a look at the history of Washington’s minimum wage to understand the context that has shaped the current regulatory landscape. Washington’s minimum wage has seen incremental increases as state policies change to keep up with inflation rising.
So, what are the key historical changes in the minimum wage in Washington? Heres everything you need to know!
Washington Minimum Wage Timeline
Before we look at the specific minimum wage rates that employers in the state need to comply with, let’s take a look at the history of Washington’s minimum wage to understand the context that has shaped the current regulatory landscape. Washington’s minimum wage has seen incremental increases as state policies change to keep up with inflation rising.
So, what are the key historical changes in the minimum wage in Washington? Here’s everything you need to know!
1960s
The state of Washington enforces its first minimum wage law at $1.15 per hour on June 30, 1961. Subsequently, the minimum wage increased twice throughout this decade and the Federal Fair Labor Standards Act which was introduced in 1967.
1970s – 1999
Minimum wage was set at $1.80 which was a 20 cent increased from beforehand. In 1975, the biggest increased yet occurred by $2.00 and throughout this time period sporadic wages increases occurred. By the 1999, the minimum wage was set at $5.70 with plans to increase the wage every year following.
2000-2015
The state’s employment laws increased minimum wage anywhere from $0.30 – $1 per year consecutively for 15 years straight. Starting at $6.50 in 2000 the minimum wage made its way up to $9.47 by 2015.
2017-present
After a two year hiatus of no changes to the minimum wage, in 2017 the Washington increased it’s state wage to $11.00. Since 2017, Washington has continued to increase its minimum wage and has become the state with the highest minimum wage. Starting January 1, 2025 the minimum wage will be $16.66 per hour.
Washington’s minimum wage in 2025 and beyond
In 2025, Washington’s minimum wage increased by 2.28% to $16.66 and is the highest minimum wage out of the 50 states. While Washington has the highest wage out of the states, it is still being Washington D.C. which is at a whomping $17.50 per hour. Moreover, Washington’s wage tops both California and New York. However, workers between the ages 14 or 15, can expect to be paid $14.16 an hour (85% of the minimum wage).
City-specific minimum wages
Although Washington state has its own minimum wage, many cities and municipalities within the state have their own as well. This includes Seattle, the capital of Washington, Tukwila, and other areas, extending beyond just these two counties.
Seattle
Tukwila
From January 1, 2025, Tukwila’s minimum wage for mid-size employers is increased to $20.10 per hour. In comparison to large employers where the minimum wage is set at $21.10. Employers are determined by the follow size regulations below:
- Mid-sized employers are employers that have at least 15 employees or a maximum of 500 employees.
- Large-sized employers are employers that employ more than 500 employees.
Additional Washington wage laws
Overtime
Overtime in Washington is set at 1.5 times the standard hourly rate for employees who exceed 40 hours a week.
Small employers are required to pay 2x the standard hourly rate for employees who exceed 40 hours per week. Whereas large employers are expected to pay 2.25x the standard hourly rate. This does not always apply for salaried jobs such as administrative or executive positions. The employer determines if the role is eligible for overtime based on the duties of the employee. Some examples of employees who are eligible for overtime are:
- Employees working in agriculture and dairy industries
- Employees working on prevailing wage jobs
- Most hourly, piece rate, and commissioned based employees
- Some salaried employees
It is worth noting that the Fair Labor Standards Act (FSLA) automatically ensures that some employees will receive overtime pay if they work over 40 hours a week or 8 hours a day. This includes workers in manual labor jobs such as construction workers, factory workers or cashier workers etc.
In addition to the specific rules outlined above, under federal law, most US states have to adhere to exemption regulations. Washington must follow the exemption regulations which states certain employees and specific professions are exempt from receiving overtime pay. These exemptions include the following:
- Highly compensated employees
- Executive, professional, and administrative employees earning at minimum $1,332.80 (small employers) or $1,499.40 (large employers) per week
- Computer professionals
- Outside salespeople
Compensatory time
In Washington compensatory time can be given instead of overtime pay if approved by an employers or stated in an employee’s collective bargaining agreement (CBA). The compensatory time rate is 1.5 hours for every overtime hour worked. The Fair Labor Standards Act (FSLA) states that this is limited to 240 hours unless the employee is in public safety or emergency response industries where they can accumulate up to 480 hours. This usually only applies to public employees and private employers are prohibited from entering these agreements.
Break Laws
Meal breaks
Employees are required to have a meal period when they work more than 5 hours in a shift. A meal period must be at least 30 minutes long and start between the second and fifth hour of the shift. Employers are not required to pay for a meal break if the worker is not fulfilling any of their duties during the break. Employees must be paid for meal breaks if:
- They are required to remain on duty.
- The employer requires them to remain on-call on the premises or work site, even if they are not called back to duty.
- They are asked to come back to work, interrupting the meal period.
Rest breaks
Employees in Washington are legally entitled to a 10-minute rest break for every 4 hours they work. Employees break times must be scheduled as close to the midpoint of their shift as possible. Employers can ask employees to stay on the job site during a break and rest breaks taken are considered to be hours worked when calculating paid sick leave and overtime. Additionally, employers cannot restrict bathroom use or set rigid time schedules.
Recordkeeping
Washington state law requires businesses to keep complete and adequate records of employee details for a period of at least five years. It is necessary to record the amount of gross receipts and sales from all sources and supporting documentation for all deductions, exemptions, or credits claimed. Other important records to keep are:
- Federal income tax returns
- Excise tax returns
- General ledgers
- Subsidiary ledgers
- Sales and/or cash receipts journals
- Sales invoices
- Purchase/cash disbursement journals
- Purchase invoices for assets and expense items
- Financial statements
Final Paycheck
Ultimately, employees must be paid for all work concluded. Employers and employees have an agreed-upon wage on a scheduled payday which must be at least once a month.
If an employee quits or gets fired, their final paycheck must be paid on or before the next regularly scheduled payday. Employers cannot withhold a final paycheck if the employee does not turn in keys, uniforms, tools, equipment, etc. Employers can choose to pay out severance, personal holidays, and vacation time on a final paycheck if they want to but it is not required.
Compliance requirements for employers
Implementing proactive and informed best practices is crucial for navigating Washington’s wage landscape with confidence.
With this in mind, we have put together an essential list of recommendations to help you implement your own wage compliance strategy. By implementing these best practices, you can ensure fair compensation for your workforce, avoid legal issues, and foster a positive work environment. This will ensure that your workplace is trustworthy and compliant.
- Know the minimum wage rate: Stay updated on the state minimum wage, and any industry-specific requirements. Be sure to check the Department of Commerce website often!
- Classify employees correctly: Distinguish between full-time, part-time, exempt, and non-exempt employees. Placing employees in the wrong group can lead to expensive losses.
- Maintain accurate records: Use a time tracking software to track hours worked, overtime, meal breaks, and wages paid. This will help you comply with state meal and rest break laws and ensure that your organization keeps a detailed record for at least three years.
- Post required information: Display Washington’s minimum wage poster and any relevant city ordinances onsite and in online channels for employees to be aware of their rights and responsibilities.
- Train your employees: Educate all employees, specifically line managers and supervisors on Washington’s minimum wage laws, overtime rules, break laws and recordkeeping practices to eliminate errors from your processes.
- Conduct regular audits: By conducting regular audits you can make sure that you are calculating overtime correctly and that your employee timecard records are accurate.
- Stay proactive: Ensure that you are up to date on any upcoming changes in wage laws and update your practices accordingly. Early preparation protects you from last-minute surprises and the risk of non-compliance.
Ultimately, by taking these steps, you can navigate Washington’s wage laws with confidence, fostering a compliant and positive work environment for your employees.
How Factorial can help you🚀
Ensuring that your organization is compliant with Washington’s wage laws is an important aspect of business management. Following these regulations can be a complex task for employers! Thankfully, Factorial’s all-one-one software solution will streamline your processes and procedures saving your employees a lot of time and resources.
Here are some of the specific benefits of using Factorial’s software in your business:
- Easy and efficient time tracking: Forget manual timesheets and attendance spreadsheets. Employees can clock-in with Factorial’s integrated electronic time clock, ensuring every minute is precisely recorded. That way, you can rest assured that you are complying with all time-tracking legal requirements.
- Employee record management: Ensure that you keep every employees information on record. This includes timecards, leave requests, performance reviews etc. Factorial’s employee record management software, allows you to easily generate reports, track historical data, and access records for audits or inquiries.
- Employee handbook & policy creation tools: Easily build and communicate a comprehensive employee handbook, including clear policies on overtime, holidays, breaks, and other wage-related regulations.
- Secure and transparent pay slips: Make sure your employees receive detailed and clear paychecks at the end of each period. This will help them understand how you have calculated their total pay, taking into account all relevant deductions.
- Payroll software. Ditch manual calculations and paper trails. Factorial’s payroll software automatically accounts for the latest Washington minimum wage updates, state holidays like Martin Luther King Jr. Day and Labor Day, and additional holiday pay rules in the state. This allows you to be confident that the information and calculations are correct.
