Due to changes to salary requirements, many employers located throughout the state of Washington are paying exempt employees incorrectly. As such, it’s essential for all employers within the state to take a few moments to ensure their compliance, rather than exposing themselves to costly wage and hour claims.
Washington’s salary requirements increased on January 1, 2023, which is the main cause of employer pay errors. The following are the current requirements:
Small employers with 1-50 employees are required to pay exempt employees 1.75 times the state’s minimum wage of $15.74 at minimum. In 2023, this breaks out to at least $1,101.80 per week or $57,293.60 per year. As of January 1, 2024, eligible small employers will be required to pay at least 2 times the current minimum wage, which will undergo adjustments for inflation.
Large employers with 51+ employees are required to pay exempt employers 2 times the state’s minimum wage of $15.74 at minimum. In 2023, this breaks out to at least $1,259.20 per week or $65,478.40 per year. As of January 1, 2024, eligible large employers will still be required to pay at least 2 times the current minimum wage, requiring inflation adjustments.
The size of an employer depends on the number of employees based within the state and employed at the time of the effective date for each increase, as well as whether the employee works full-time or part-time.
This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company. Please also note that state and federal laws change routinely. The information provided in this post is subject to change at any time.