Reminder: 2023 Minimum Wage Increase – Jan. 1

Dec 1, 2022
Beginning Jan. 1, 2023, the state minimum wage will increase to $15.74 per hour, up from the current $14.49 per hour rate.

Beginning Jan. 1, 2023, the state minimum wage will increase to $15.74 per hour, up from the current $14.49 per hour rate. The Department of Labor and Industries (L&I) is required by state law to calculate the minimum wage based on the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers from the Bureau of Labor Statistics, and this increase is linked to the cost of common goods such as housing, food, and medical care as shown by the CPI. This state minimum wage applies to workers 16 years of age or older, and it is important to keep in mind that some Washington cities, such as Seattle and SeaTac, have a higher minimum wage than state requirements.

L&I has also calculated new minimum salary requirements for employees that are exempt from receiving overtime pay. To fall into the exempt from overtime category, an employee must earn at least the minimum salary, outlined below, and employee job duties must meet a jobs test. This category includes positions such as executive, administrative, and professional workers.

Based on the new minimum wage threshold, L&I has calculated updated salary thresholds that will take effect Jan. 1, 2023, as follows:

  • For small businesses (those with 1-50 employees), the threshold is 1.75 times the state minimum wage at $1,101.80 per week, or $57,293.60 per year. This means an employee exempt from overtime pay must meet the above earning threshold.
  • For large businesses (those with 51 or more employees), the threshold is 2 times the state minimum wage at $1,259.20 per week or $65,478.40 per year. This means an employee exempt from overtime pay must meet the above earning threshold.

Questions?

For more information, including details about overtime, rest breaks, and meal periods, visit the L&I Minimum Wage website.