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The Department of Labor & Industries (L&I) announced that Washington’s state minimum wage will jump to $17.73 per hour beginning Jan. 1, 2027, as part of the state’s automatic inflation‑adjustment formula. The increase also raises the floor for teenage workers, with a minimum of $15.07 per hour for employees under age 16.
Key developments include a higher overtime exemption threshold. Small employers (50 or fewer employees) must pay at least 2.25 times the new minimum wage—$1,595.70 per week—while larger firms (51 or more employees) face a 2.5‑times multiplier, or $1,773.00 per week. These thresholds are part of an eight‑year schedule that will fully align overtime rules with the 2.5‑times multiplier by 2028.
Why it matters: The raise pushes Washington’s wage well above the federal floor of $7.25, boosting earnings for low‑income workers and increasing household purchasing power. At the same time, higher overtime thresholds mean many salaried employees will remain exempt, preserving employer cost controls while still delivering a higher base pay.
What to watch next: 1) Implementation of the new overtime thresholds across small and large firms; 2) Potential adjustments to the multiplier schedule in 2028 as the 2.5‑times rule becomes universal; 3) How localities within Washington may adopt supplemental minimum‑wage ordinances that exceed the state level; and 4) Legislative proposals at the federal level that could introduce a national indexed minimum wage, which would influence future state adjustments. [[1, 2]]