Effective January 1, 2025, the Washington State Department of Labor & Industries significantly raised the minimum salary threshold for exempt employees under the state’s Minimum Wage Act. This groundbreaking change has far-reaching implications for employers and employees alike, especially those within the rapidly evolving tech industry.
The new minimum salary threshold for exempt employees in Washington is $1,181 per week or $61,452 per year. This represents a substantial increase from the previous threshold of $875 per week or $45,500 per year. Accordingly, this brings Washington’s threshold closer to the federal threshold of $1,045 per week or $54,830 per year. The change is designed to ensure that employees who are classified as exempt from overtime pay are genuinely performing managerial or professional duties and are fairly compensated for their work.
However, employers should note that the new threshold applies to all exempt employees, regardless of their industry or job title. Therefore, businesses of all sizes need to carefully review their current pay practices to ensure compliance with the new law. Failure to do so could result in significant penalties, including back pay and damages for unpaid overtime. Additionally, employers should consider the potential impact on employee morale and retention, as many exempt employees may expect salary adjustments to reflect the increased threshold.
Washington Minimum Salary for Exempt Employees 2025
The Washington State Department of Labor & Industries (L&I) has announced the minimum salary for exempt employees in 2025. The new salary threshold will be $1,246 per week, or $64,992 per year. This represents a 4.6% increase from the 2024 minimum salary of $1,192 per week, or $62,048 per year.
The minimum salary for exempt employees is the minimum amount that an employer must pay an employee in order to qualify for the “exempt” status under the Fair Labor Standards Act (FLSA). Exempt employees are not eligible for overtime pay, and they are not subject to certain other overtime regulations. In order to be classified as exempt, an employee must meet certain criteria, including the minimum salary requirement.
The new minimum salary for exempt employees in Washington State will take effect on January 1, 2025. Employers should review their payroll records and make any necessary adjustments to ensure that they are in compliance with the new law.
People Also Ask About Washington Minimum Salary for Exempt Employees 2025
What is the minimum salary for exempt employees in Washington State for 2025?
The minimum salary for exempt employees in Washington State for 2025 is $1,246 per week, or $64,992 per year.
When does the new minimum salary take effect?
The new minimum salary takes effect on January 1, 2025.
Who is considered an exempt employee?
An exempt employee is an employee who meets certain criteria, including the minimum salary requirement, and who is not eligible for overtime pay or certain other overtime regulations.
