Washington State has announced its new minimum wage, exempt salary level, and other compensation levels for 2027. All of the following will be in effect as of January 1, 2027:
- Washington State minimum wage: $17.73 per hour
- To be exempt from overtime and other requirements, generally an employee must meet a duties test and in 2027 be paid a salary of at least the applicable level:
- Computer professionals can be paid either the applicable weekly salary above or $62.06 per hour and be exempt from overtime pay.
- There are some other exceptions to the salary rule, but they are not common. An employer who believes either the computer professional exemption or other exceptions may apply should consult with an attorney to be certain.
- As we explained in our prior blog post, Washington law will prohibit noncompete clauses starting July 1, 2027. From January 1, 2027, to June 30, 2027, for an enforceable noncompetition provision, an employee must be paid an annualized total compensation (combination of salary, hourly, commissions, etc.) of at least $131,326.59. An independent contractor must receive at least $328,316.49 in annualized compensation from the entity seeking to enforce a noncompetition provision.
Local Washington Minimum Wage Rates for 2027
Multiple local jurisdictions within Washington have minimum wage rates that exceed the Washington State minimum wage, which also increase each year to account for inflation. The following cities and unincorporated King County will have the noted minimum wages for 2027:
- Bellingham minimum wage: $19.73 per hour
- Burien minimum wage:
- Employers with more than 15 employees: $22.49 per hour
- Employers with 15 or fewer employees: $20.49 per hour
- Everett minimum wage:
- Employers with more than 500 employees worldwide, including certain franchisees: $21.52 per hour
- Employers with at least 15 employees but less than 500 employees OR annual gross income over $2 million
- January 1 – June 30, 2027: $20.52 per hour
- July 1 – December 31, 2027: $21.52 per hour
- Employers with fewer than 15 employees AND gross revenue less than $2 million must pay only the state minimum wage
- Employers determine which minimum wage applies to them based on the average weekly number of employees and annual gross revenue in 2026
- King County (unincorporated) minimum wage: $21.57 per hour
- The only exception is for employers with 15 or fewer employees AND an annual gross revenue of less than $2 million: $19.57 per hour
- Employers determine which minimum wage applies to them based on the average weekly number of employees employed during the last 12 months and annual gross revenue in 2026
- Renton minimum wage:
- Employers with at least 15 employees worldwide OR over $2 million of annual gross revenue in Renton: $22.28 per hour
- Employers with fewer than 15 employees AND gross revenue less than $2 million must pay only the state minimum wage
- Employers determine which minimum wage applies to them based on the average weekly number of employees and annual gross revenue in 2026
- SeaTac sets a different minimum wage for employees in the hospitality and transportation industries. Nonexempt employees working in those industries must be paid at least $21.47 per hour beginning January 1, 2027.
- Seattle minimum wage: $22.14 per hour
- Tukwila minimum wage: $22.45 per hour
Key Takeaways for Washington Employers on the 2027 Minimum Wages
- Employers must have their payroll systems ready to apply the correct pay rate no later than January 1, 2027.
- For employers with operations in multiple jurisdictions, or individual employees who work in different jurisdictions during a workday or workweek, determining which rate to apply to any particular hour worked can add additional complexity.
- Given that the consequences of failing to comply can be significant (additional wages, double or tripled for penalties, subject to 12 percent interest, the employees’ attorney fees in addition to the employer’s own attorney fees, and other penalties), employers who are uncertain as to their obligations should consult with employment counsel.
Reach out to our employment law & labor relations team if you need help navigating these complex minimum wage and related jurisdictional issues.
The legal issues impacting this topic are and will continue to be ever-changing (Employment Law in Motion!), and since publication of this blog post, new or additional information not referenced in this blog post may be available.
This article is provided for informational purposes only—it does not constitute legal advice and does not create an attorney-client relationship between the firm and the reader. Readers should consult legal counsel before taking action relating to the subject matter of this article.
