Remember that the new year means new changes and regulations. Make sure that you understand how these changes may affect your business.
Effective January 1, 2025, a number of wage changes took effect across the state of Washington, including:
- Washington State Minimum Hourly Wage
- The Washington State minimum wage is now $16.66 per hour.
- Many regions and municipalities have their own minimum wages that are higher than the state minimum, be sure to check and see if yours is one of them.
- Overtime-Exempt Minimum Salary Threshold
- Overtime-except employees must also be compensated according to a statewide minimum.
- Depending on the size of the employer, workers that are eligible for overtime exemption (eligibility for overtime exemption is determined by meeting certain duties tests) must be paid a minimum of the following salaries:
- $69,305.60 a year for small employers (1-50 employees)
- $77,968.80 a year for large employers (51 or more employees)
Another new change taking effect this year is surrounding non-compete agreements. Non-compete agreements, which prevent employees and independent contractors from working for a competitor or starting a similar business, are only enforceable in Washington if the worker earns above an annual threshold amount. Employees and independent contractors earning less than the following amounts cannot be subject to enforceable non-compete agreements.
- For employees, the annual earning threshold is $123,394.17.
- For independent contractors, the annual earning threshold is $308,485.43.
One more regulation to keep in mind is centered around outside employment. Employers are not allowed to restrict their employees from having outside employment or self-employment unless those employees are paid at least twice the statewide hourly minimum wage of $16.66, which amounts to $33.32 per hour or $69,305.60 annually. Exceptions apply for some instances of scheduling issues or clear conflicts of interest.
For more questions about regulations, compliance, and how to get support, please visit LNI.WA.gov/workers-rights