Washington overtime-exempt salary thresholds rise Jan. 1, 2027; $92,196 for employers with 51+ employees
Key points
- L&I: the state minimum wage rises to $17.73 on Jan. 1, 2027, and the exempt salary threshold rises under the WAC 296-128-545 schedule; this is not new legislation.
- 51+ employees: 2.5x, $1,773 a week or $92,196 a year; 50 or fewer: 2.25x, $1,595.70 a week or $82,976.40 a year, moving to 2.5x in 2028.
- Hourly computer professionals must earn at least $62.06 an hour regardless of employer size; outside salespersons are not subject to the salary threshold.
Washington's Department of Labor & Industries (L&I) announced on Sept. 30 that the state minimum wage rises from $17.13 to $17.73 an hour on Jan. 1, 2027, lifting the salary threshold for overtime-exempt employees. This is not new legislation: it follows the phased multiplier schedule in WAC 296-128-545 combined with the annual minimum wage adjustment. Employers with 51 or more employees use 2.5 times, an annual threshold of $92,196; employers with 50 or fewer use 2.25 times, or $82,976.40. Outside salespersons are not subject to the threshold. Not legal advice.
What employers should do
- Count Washington-based employees (full- and part-time each count as one) to determine which threshold applies.
- List exempt employees who will fall below the threshold on Jan. 1, 2027, and either raise pay or reclassify them as non-exempt, track hours and pay overtime.
- Count only salary toward the threshold; bonuses, commissions and benefits do not count.
Policy details
- Jurisdiction
- Washington
- Status
- Final rule
- Effective date
- 2027-01-01
- Employers covered
- Washington employers with overtime-exempt employees (two tiers based on in-state headcount: 50 or fewer, 51 or more)
- Official source
- View official source ↗
Original report: lni.wa.gov ↗AI-assisted brief; may contain inaccuracies. Rely on the original reports and official documents. For information only; not legal, immigration or insurance advice.