Washington Sets New Minimum Wage and Overtime Exempt Threshold for 2022

Washington State Department of Labor & Industries (L&I) announced the new state minimum wage for 2022.  Starting January 1, 2022, the Washington state minimum wage is $14.49/hour.

State law mandates L&I calculate the minimum wage for the coming year based on the Bureau of Labor Statistics (BLS) Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). L&I compares the CPI-W from August of the previous year to the index for August of the current year to make the calculation.

The minimum wage applies to most jobs, including those in agriculture. In addition, agricultural workers are eligible to earn overtime after working more than 55 hours per week, beginning January 1, 2022.

Municipalities

Seattle

Starting January 1, 2022, Seattle’s minimum wage for large employers (over 500 employees worldwide) for 2022 is $17.27/hour.  The minimum wage for small employers (500 or fewer employees worldwide) is $15.75/hour if the employee also receives tips and/or payments toward the employee’s medical benefits. For Seattle businesses with 500 employees or less who do not pay medical benefits and/or allow employees to earn tips, the 2021 wage will increase to $17.27/hour.

SeaTac

SeaTac announced a change to their minimum wage for hospitality and transportation employees to $17.53/hour starting January 2022.

Overtime Exempt Employees

The change in the state minimum wage also increases the new state minimum salary thresholds for Overtime Exempt Employees.

Using the 2022 minimum wage starting January 1, 2022, L&I calculated the salary thresholds for all exempt employees to be at least 1.75 times the state minimum wage, or $1,014.30 a week ($52,743.60 a year).

The rate changes in 2023 as employees at Small businesses (1-50 non-exempt WA employees) continue to receive at least 1.75 times the minimum wage. However, employees at Large businesses (51 or more non-exempt WA employees) will receive 2 times the state minimum wage.

Computer Professionals

In addition, the new minimum wage changes the 2022 thresholds for computer professionals who are paid by the hour.  All hourly computer professional employees must earn a rate of at least 3.5 times the state minimum wage ($50.72/hour).

*This document simplifies complex information as it is understood by Time Equipment Company. It is not to be taken as legal advice. The guidelines are consistently changing. For further information, please visit lni.wa.gov or www.seattle.gov.