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Washington minimum wage increasing to $15.74 an hour in January

The 8.66% rise comes amid the price increase of common goods, such as housing, food, and medical care.

WASHINGTON, USA — Artículo en Español: 'Salario mínimo en Washington aumenta a $15.74 por hora en enero.'

Washington's minimum wage will increase from $14.49 to $15.74 an hour in January 2023, a $1.25 from what it is now.

The 8.66% rise comes amid the price increase of common goods, such as housing, food, and medical care.

Washington law directs the Washington State Department of Labor & Industries (L&I) to calculate the minimum wage for next year based on the federal Bureau of Labor Statistics’ (BLS) Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

For the calculation, L&I compared the CPI-W index from August of the previous year to the index for August of the current year.

Washington's minimum wage raise will apply to workers 16 years of age and older. Under state law, employers can pay 85% of the minimum wage to workers ages 14 to 15. By 2023, the wage for that younger group will be $13.38 per hour.

According to the statement, cities in Washington can set minimum wages higher than the state. For example, Seattle and SeaTac both have higher wages.

Minimum wage policies for other employees will apply as follows:

Overtime exempt employees

The new minimum salary change will impact “white collar” positions held by executive, administrative and professional workers, including computer professionals and outside salespeople. To be exempt from earning overtime, a worker must earn at least the minimum salary and their duties must meet a jobs test.

The 2023 minimum salary for exempt employees working for small employers (1-50 employees) is 1.75 times the minimum wage. That means an employee exempt from overtime pay must earn at least $1,101.80 a week, or $57,293.60 a year.

For large employers (51 or more employees), the threshold is two times the minimum wage. Those employees must earn at least $1,259.20 a week, or $65,478.40 a year.

Under the same rules, exempt computer professionals may be paid an hourly rate rather than a salary. In 2023 and beyond, the applicable hourly rate is 3.5 times the minimum wage, regardless of employer size. For 2023, that will be $55.09 per hour. 

For more information visit the L&I website.

Minimum pay for Uber, Lyft and other rideshare drivers

The new minimum wage will also impact the minimum pay for drivers for rideshare companies such as Uber and Lyft. The minimum pay is one of the new rights and protections granted to these drivers by legislation passed earlier this year.

For trips within Seattle in 2023, drivers will earn 64 cents per passenger minute and $1.50 per passenger mile, or $5.62, whichever is greater.

For trips outside of Seattle in 2023, drivers will earn 37 cents per passenger minute and $1.27 per passenger mile, or $3.26, whichever is greater.

The law also requires L&I to update the minimum trip compensation rate each September using the CPI-W.

For more information about the minimum wage, visit the L&I's website, which includes details about overtime, breaks, meal periods and information on how to file a wage complaint. Employers and workers can also call 360-902-5316 or 1-866-219-7321.

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