2025 Minimum Wage and Overtime Threshold

Starting January 1, 2025, Washington State’s minimum wage will be $16.66. Employers must pay this rate for all hours worked, including opening, closing, training, and meetings. Some cities, like Seattle and Tukwila, will have higher minimum wages.

For overtime exemption, employees must meet three tests: salary basis, salary level, and duties. The 2025 salary thresholds are $1,332.80/week for small employers (1-50 employees) and $1,499.40/week for large employers (51+ employees). Employees must primarily perform executive, administrative, or professional duties to be exempt.

Washington’s salary threshold will continue to rise until it reaches 2.5 times the minimum wage by 2028. Employers can use L&I’s salary budget tool to plan for payroll costs and ensure compliance.

Employer Options

If your nonprofit has exempt employees with salaries below the minimum threshold, consider these options:

1. Maintain Exempt Status: Pay at least the new salary threshold and ensure job duties tests are met.
2. Convert to Nonexempt Salaried: Continue current salary, pay overtime for hours over 40 per week, and provide Minimum Wage Act protections. Track time.
3. Convert to Nonexempt Hourly: Pay hourly, provide overtime for hours over 40 per week, and offer Minimum Wage Act protections.

Remember to review classifications annually as thresholds rise through 2028.

Important Note:?This information is for educational purposes only and does not constitute legal or technical advice. For more details, we suggest that you contact the appropriate agency, employment attorney, or human resources?specialist.

Learn More/Resources -Washington State Dept. of Labor & Industries

Washington’s minimum wage rules

Changes to Overtime Rules

Workshops and Training page.

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