As of October 2026, the Washington State minimum wage is $17.13 an hour, and it rises to $17.73 an hour on 1 January 2027. Workers aged 14 and 15 can be paid no less than 85% of the minimum wage, which is $15.07 an hour in 2027, and some cities, including Seattle and SeaTac, set higher local rates.
Washington has one of the highest state minimum wages in the US, and it changes every January without a vote. If you employ people there, the 2027 rate has already been announced, so now is the time to plan for it. Here's what the Department of Labor and Industries (L&I) says.
Washington minimum wage at a glance
| Rate | 2026 (as of October 2026) | 2027 (from 1 January) |
|---|---|---|
| Minimum wage, most workers | $17.13 an hour | $17.73 an hour |
| Workers aged 14 and 15 | 85% of the minimum wage | $15.07 an hour |
| Exempt salary, small employers (1 to 50 employees) | $1,541.70 a week | $1,595.70 a week |
| Exempt salary, large employers (51 or more) | $1,541.70 a week | $1,773 a week |
How Washington sets its minimum wage
L&I makes a cost-of-living adjustment every year based on the federal Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The new rate is announced on 30 September and takes effect on 1 January. That's why you can plan with certainty in the autumn: the 2027 figure of $17.73 is already published.
Tips and service charges don't count
This is the rule that most surprises employers moving into Washington from other states. L&I says businesses may not use tips and service charges paid to an employee as part of that employee's hourly minimum wage, and employers must pay all tips and service charges to employees as defined under the Minimum Wage Act. There's no tip credit. A server, a barista and a cleaner are all owed at least $17.13 an hour before any tips.
Service charges catch people out more than tips. If you add a service charge to a bill and describe it in a way that makes customers think it goes to staff, plan on passing it through. L&I's policy ES.A.12 sets out how tips and service charges are treated, and it's worth reading before you change how your bills are worded.
Exempt salaries are rising faster than the wage
Here's the insight I'd flag to any growing business. Washington's salary threshold for overtime-exempt employees is a multiple of the state minimum wage, and that multiple is climbing. L&I says it increases step by step to 2.5 times the minimum wage by 2028, with small employers on a slower phase-in.
For 2027 that splits the threshold in two for the first time in this table: small employers with 1 to 50 employees must pay at least 2.25 times the minimum wage ($1,595.70 a week), and large employers with 51 or more must pay 2.5 times ($1,773 a week). Hire your 51st employee and the salary floor for every exempt manager jumps. The 2027 rules also merge the state's two job duties tests into one that lines up more closely with the federal test.
Because the state thresholds are higher than the federal one, L&I says salaried exempt employees have to earn at least the state threshold. When state and federal rules conflict, you meet whichever is more favourable to the employee.
What counts as hours worked
- L&I says employers must pay at least the minimum wage for all hours worked as defined by state law.
- Hours worked include opening and closing the business, required trainings and meetings.
- Most agricultural and non-agricultural jobs qualify for the minimum wage; some jobs are exempt from the Minimum Wage Act.
- Some local jurisdictions have higher minimum wages and different labour rules. L&I lists Seattle, SeaTac, Tukwila, Renton, Bellingham, Everett, Burien and unincorporated King County among them, so check the local rate where each person works.
Complaints and retaliation
Workers can file a workplace rights complaint with L&I if they're owed wages. The Minimum Wage Act bans retaliation against an employee for exercising their rights, and retaliation complaints must be filed within 180 days of the action. L&I's list of adverse actions is wide: firing, suspension, demotion, cutting hours, changing schedules, write-ups and verbal warnings all count, as do threats based on an employee's immigration status.
Your January 2027 checklist
- Raise every hourly rate below $17.73 from the first pay period covering 1 January 2027.
- Pay 14 and 15 year olds no less than $15.07 an hour.
- Count your headcount: 1 to 50 or 51 and over decides your 2027 exempt salary threshold.
- Check every exempt salary and update job descriptions against the new single duties test.
- Print the 2027 minimum wage poster; L&I publishes it in English, Spanish and Korean.
- Look up local rates for any staff working in cities with their own minimum.
Because every working minute counts, a reliable time clock app is one of the cheapest ways to protect yourself, and HR software for small businesses helps when job duties need documenting.
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My verdict
Washington's minimum wage is $17.13 now and $17.73 from January, and there's no tip credit to soften it. The real planning point for growing firms is the exempt salary threshold, which is rising faster than the wage and now depends on whether you have more than 50 employees. Do the January checks in December and you won't be caught out.
Frequently asked questions
What is the minimum wage in Washington State in 2026?
As of October 2026, it's $17.13 an hour for most workers.
What will Washington's minimum wage be in 2027?
L&I says it will be $17.73 an hour from 1 January 2027, and $15.07 an hour for 14 and 15 year olds.
Can Washington employers count tips towards minimum wage?
No. Tips and service charges can't be used as part of an employee's hourly minimum wage, and they must be paid to employees.
How does Washington decide the minimum wage each year?
L&I adjusts it for the cost of living using the federal CPI-W, announces the new rate on 30 September and applies it from 1 January.
What is the exempt salary threshold in Washington for 2027?
From 1 January 2027 it's $1,595.70 a week for employers with 1 to 50 employees and $1,773 a week for employers with 51 or more.
Do Seattle and other cities have a higher minimum wage?
Yes. L&I lists Seattle, SeaTac, Tukwila, Renton, Bellingham, Everett, Burien and unincorporated King County among areas with higher local rates.
