December 2024

State Updates

 

Washington increases minimum wage for 2021

11/05/20

Author: ADP Admin/Wednesday, November 4, 2020/Categories: Compliance Corner , State Compliance Update, Washington

The State of Washington will increase its minimum wage on January 1, 2021.


Non-exempt Employees:

The minimum wage for non-exempt employees will increase to $13.69 per hour in 2021. In 2021, employers may pay 85 percent of the minimum wage (or $11.64) per hour to workers ages 14-15. All non-exempt employees must be paid at least the minimum wage per hour.


Exempt Employees:

Since Washington's minimum salary threshold is a multiple of the minimum wage, the minimum salary to be considered exempt from overtime will also increase in 2021. Starting January 1, 2021, exempt employee must earn at least:

Employer Size

Multiply minimum wage by

Weekly minimum

1-50 employees

1.5x

$821.40

51 or more employees

1.75x

$958.30


Compliance Recommendations:

Employers in Washington State must comply with the new minimum wage and post an updated minimum wage poster in their workplace. Note that certain cities, including SeaTac and Seattle may have higher minimum wage rates. When an employee is covered by more than one rate, typically the rate most generous to the employee applies.

Employers with exempt employees must ensure that these workers' salaries meet the new minimum and that these workers otherwise qualify for exemption by meeting all applicable salary and duties tests. Otherwise, these employee must be classified as non-exempt and paid overtime when due. Please contact your dedicated service professional with any questions.

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