Overview of Washington's Minimum Wage Requirements
As of 2024, the minimum wage in Washington is $16.28 per hour. This applies to most agricultural and non-agricultural jobs, including tasks such as opening and closing a business, required training, and meetings. However, there are exceptions for certain workers. For example, employers can pay minors aged 14 to 15 years old less than the state minimum wage, but no less than 85% of it, which equates to $13.84 per hour in 2024.
The minimum wage in Washington is adjusted annually for cost-of-living based on the federal Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This is a result of Initiative 1433, approved by Washington voters in 2016, which set a statewide minimum wage of $11.00 in 2017, with incremental increases each year until it reached $13.50 in 2020. Since then, the Department of Labor & Industries (L&I) is required to make a cost-of-living adjustment to the minimum wage each year.
It's also important to note that tips and service charges must be paid to employees and cannot be used as part of an employee’s hourly minimum wage.
Understanding Local Minimum Wage Variations
While the state-wide minimum wage is $16.28 per hour, some local jurisdictions have higher minimum wage rates. For instance, Seattle's minimum wage is $19.97 per hour, Tacoma's is $19.71 per hour, and Tukwila's is $20.29 per hour.
In King County, the minimum wage varies depending on the size of the business. For businesses with 15 or fewer employees and an annual gross revenue of less than $2 million, the minimum wage is $17.29. Businesses with more than 15 but fewer than 500 employees have a minimum wage of $18.29.
Minimum Wage Eligibility and Exemptions
In Washington State, the Minimum Wage Act (MWA) applies to all employers and employees, establishing a minimum wage, overtime wages, and paid sick leave, and requiring employers to pay all tips, gratuities, and service charges due to employees.
However, there are exemptions to these requirements. Exemptions include workers employed as bona fide executive, administrative, professional, computer professional, and outside sales employees. The professional exemption includes four main categories: learned professionals, creative professionals, teachers, and employees practicing law or medicine. To qualify for an exemption, employees must meet certain tests regarding their job duties and be paid on a salary basis at a minimum specified salary level.
Minimum Wage Considerations and Compliance Tips
In Washington State, employers must adhere to several key legal considerations regarding minimum wage. Firstly, all tips must be paid to employees and cannot be used by the employer for company use or to pay employee wages. This means that “tip crediting” is not allowed, and tips are earned in addition to, and not a part of, an hourly minimum wage. Employers can establish tip pools but cannot include salaried-exempt managers and business owners.
Service charges are also subject to specific regulations. If a business imposes a service charge, it must clearly disclose on the receipt and menu how much, if any, an employee will receive from the charge. The service charge paid to an employee is earned in addition to, and not a part of, an hourly minimum wage.
Employers must record the amount paid each pay period to their employee, including tips and service charges. They are also required to withhold taxes from tips and service charges.
FAQs
- What is the minimum wage in Washington in 2024? The minimum wage in Washington State in 2024 is $16.28 per hour.
- Are there any exceptions to the minimum wage in Washington? Yes, there are exceptions for certain workers. For example, employers can pay minors aged 14 to 15 years old less than the state minimum wage, but no less than 85% of it.
- Are tips included in the minimum wage in Washington? No, tips are not included in the minimum wage. All tips must be paid to employees and cannot be used by the employer for company use or to pay employee wages.
- Are there any local variations in the minimum wage in Washington? Yes, some local jurisdictions have higher minimum wage rates. For instance, Seattle's minimum wage is $19.97 per hour, Tacoma's is $19.71 per hour, and Tukwila's is $20.29 per hour.
Information Source Links
- Washington State Department of Labor & Industries
- 2024 minimum wage announcement
- Workplace Rights Complaint Form
- Tips, Gratuities and Service Charges
- ES.A.14
- ESA1
Learn more about Local Food Delivery Trends and Insights
About Otter
- Increase revenue up to 10% with Marketing*
- Reduce storefront downtime by up to 50% with Live Alerts*
- Increase sales up to 50% with Digital Dine-In's QR code ordering*
- Reduce missed orders to less than 1% with Order Manager's Auto-Accept feature*
- Supercharge your food business with our all-in-one restaurant POS system*