TUMWATER, WA — The Washington State Department of Labor & Industries (L&I) announced that the state minimum wage will rise to $17.13 an hour beginning January 1, 2026. The increase represents a 2.8 percent adjustment from the current rate of $16.66 per hour, which is already the highest statewide minimum wage in the country.
State law requires L&I to calculate the annual minimum wage based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as measured by the federal Bureau of Labor Statistics. The update is determined by comparing August figures from the previous year to the current year.
Local governments may set higher minimum wages. Cities including Seattle, SeaTac, Tukwila, Renton, Bellingham, Everett, and Burien, as well as unincorporated King County, currently exceed the statewide minimum. The federal minimum wage remains at $7.25 per hour.
Overtime and Exempt Salaries
The increase also affects overtime-exempt workers. Starting in 2026, employers must pay exempt employees at least 2.25 times the state minimum wage, equal to $1,541.70 per week or $80,168.40 annually. L&I is following an eight-year plan that gradually raises the threshold until it reaches 2.5 times the minimum wage in 2028. Exempt computer professionals may instead be paid an hourly rate, which will be set at $59.96 next year.
Additional Wage Standards
- Youth workers: Employees ages 14–15 may be paid 85 percent of the minimum wage, or $14.56 per hour in 2026.
- Rideshare drivers: For trips within Seattle, drivers will earn 70 cents per passenger platform minute and $1.63 per passenger mile, or a minimum of $6.12. Outside Seattle, the rates will be 40 cents per platform minute and $1.38 per passenger mile, or $3.55 minimum.
- Non-compete agreements: For 2026, the minimum annual earnings threshold for a non-compete clause to be enforceable will be $126,858.83 for employees and $317,147.09 for independent contractors.
L&I enforces wage and hour laws in Washington and investigates worker complaints. Information on minimum wage requirements, exemptions, and filing complaints is available on the agency’s website.
