Do You Have Washington Employees? Keep Reading for Important Minimum Wage and FLSA Updates

Washington State’s Department of Labor & Industries has announced a bump in the state minimum wage starting January 1, 2025. This change will also affect the overtime exempt threshold for both small and large employers.

Here’s what you need to know:

Minimum wage increase:

• For workers aged 16 and older, it goes from $16.28 to $16.66 per hour.
• For workers aged 14 and 15, it jumps from $13.84 to $14.16 per hour.
• Keep in mind that some cities like Seattle, SeaTac, Tukwila, Renton, and Bellingham already have their own minimum wage rates. Burien is set to have its own in 2025, too!

Impact on overtime exemptions:

• For small employers (50 or fewer employees), to classify someone as exempt from overtime, they need to pay at least double the minimum wage, which means:
  • $1,332.80 per week or $69,305.60 per year.
• For large employers (51+ employees), the salary threshold is higher at 2.25 times the minimum wage:
  • $1,499.40 per week or $77,968.80 per year.
• Different rules apply for specific roles, like exempt computer professionals and rideshare drivers.

Noncompetition agreements:

The wage threshold for non-competes in 2025 will be $123,394.17. There are also state and federal restrictions on when these agreements can be presented to employees.

Action items for employers:

Be sure to notify employees about these changes and update classifications or payroll before January 1, 2025, to stay in compliance.

Give us a call if have any questions.