Washington Minimum Wage Increase up to $ 16.66 in 2025

Washington Minimum Wage Increase up to $ 16.66 in 2025

Washington state continues to lead the nation with one of the highest minimum wages in the United States. Adjusted annually for inflation, the Washington minimum wage for 2025 will rise to $16.66 per hour, a 2.35% increase over 2024’s rate of $16.28. This adjustment takes effect on January 1, 2025, ensuring wages keep pace with the cost of living.

How Is the Washington Minimum Wage Calculated?

The Washington State Department of Labor & Industries (L&I) calculates the annual minimum wage adjustment based on the federal Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index tracks changes in prices for housing, food, and other essential goods and services.

To determine the 2025 wage, L&I compared the CPI-W from August 2023 to August 2024. The increase reflects rising costs, particularly in housing and food, over the past year.

City-Specific Minimum Wages

Certain cities in Washington have set higher minimum wages to address the cost of living in these areas. For 2025, the minimum wages in these cities are:

  • Seattle minimum wage :
    • Large employers (501+ employees): $19.67 per hour.
    • Small employers (500 or fewer employees): $17.27 per hour, if they contribute at least $2.40 per hour toward medical benefits or the employee earns that amount in tips.
  • SeaTac minimum wage:
    • For hospitality and transportation workers: $19.06 per hour.
  • Tukwila minimum wage:
    • Minimum wage will increase to $18.99 per hour in July 2025, aligning with the city’s inflation adjustment schedule.
  • Renton minimum wage:
    • Expected to adopt a minimum wage above the state rate, with city council announcements pending.
  • Bellingham minimum wage:
    • Likely to follow a local adjustment exceeding the statewide minimum, influenced by housing and living costs.
  • Burien minimum wage:
    • Local living wage discussions suggest a minimum wage potentially aligning with nearby Seattle or Tukwila rates.

If you work or run a business in one of these cities, you are required to follow these local minimum wage laws instead of the statewide rate of $16.66 per hour.

Overtime Exempt Employees

The 2025 Washington state minimum wage increase will also affect the pay thresholds for overtime-exempt workers, as set by L&I. The thresholds depend on the size of the employer:

  • Small employers (50 or fewer employees): Overtime-exempt workers must earn at least 2 times the minimum wage, or $1,332.80 per week ($69,305.60 per year).
  • Large employers (51+ employees): Overtime-exempt workers must earn at least 2.25 times the minimum wage, or $1,499.40 per week ($77,968.80 per year).

Exempt computer professionals may be paid hourly, at a rate of 3.5 times the minimum wage, or $58.31 per hour in 2025.

Pay for Rideshare Drivers

Under legislation passed in 2022, rideshare drivers for companies like Uber and Lyft have specific minimum pay protections:

  • Within Seattle: Drivers will earn 68 cents per passenger platform minute and $1.59 per passenger platform mile, or a minimum of $5.95 per trip, whichever is greater.
  • Outside Seattle: Drivers will earn 39 cents per passenger platform minute and $1.34 per passenger platform mile, or a minimum of $3.45 per trip, whichever is greater.

These rates ensure fair compensation for drivers regardless of location according to rights and protections granted to these drivers by legislation passed in 2022.

Non-Compete Agreement Thresholds

Washington’s minimum wage increase also affects the enforceability of non-compete agreements. For 2025:

  • Employees: Non-compete clauses are enforceable only if the worker earns at least $123,394.17 annually.
  • Independent contractors: Non-compete agreements are valid if the contractor earns at least $308,485.43 annually.

Who Has to Follow the Minimum Wage Rules?

Most employers in Washington have to pay the minimum wage, but there are some exceptions. Here are a few cases where the rules might be different:

  • Minors (workers between 14 and 15 years old): They can be paid 85% of the minimum wage, which is about $14.16 per hour in 2025.
  • Agricultural Workers: Some farm workers might be paid a piece rate (based on the amount of work they do), but their earnings must add up to at least the minimum wage.
  • Independent Contractors: Contractors aren’t covered by minimum wage laws since they’re self-employed.
  • Seasonal Workers: Workers in certain seasonal jobs, like amusement parks, may not be covered by the same minimum wage rules.

If you’re not sure which rules apply to your situation, it’s best to check with the Washington State Department of Labor & Industries.

Additional Resources for Employers and Workers

The Washington State Department of Labor & Industries provides resources to help workers and employers understand their rights and responsibilities:

For questions, contact L&I’s Employment Standards Program at: 360-902-5316 or 1-866-219-7321

Why Washington’s Minimum Wage Is Inflation-Adjusted

Washington voters approved Initiative 688 in 1998, tying the minimum wage to inflation. This ensures that wages maintain their purchasing power over time. The annual adjustments are calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

How Does the Minimum Wage Compare to Inflation?

Washington’s minimum wage is tied to inflation, which means it keeps up with rising prices. From 2017 to 2025, the state’s minimum wage has gone up by about 50.73%, while the U.S. inflation rate over the same period is about 26.68%. This means workers in Washington are seeing real wage growth, giving them more spending power.

The Impact of Minimum Wage Policies

Washington’s approach to minimum wage laws highlights the state’s effort to align wages with living costs. These policies are crucial in ensuring economic stability for hourly workers, especially in high-cost cities like Seattle and SeaTac.

For further details and updates on Washington’s minimum wage laws, visit the Washington State Department of Labor & Industries.

Filing Wage Complaints
The Washington State Department of Labor & Industries (L&I) enforces wage-and-hour laws and investigates all wage payment complaints. Workers can file a rights complaint online, download and mail the form to L&I, or submit it in person at a local office.

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