Washington minimum wage rates will rise to $17.73 an hour on January 1, 2027, giving most covered workers a 60-cent increase from the current $17.13 rate.
The Washington State Department of Labor & Industries announced the 3.5% adjustment on September 30, 2026, after calculating the annual increase under the state’s cost-of-living formula.
The new statewide rate applies to most employees, although cities and counties may require employers to pay more under local wage laws.
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Washington minimum wage reaches $17.73 in 2027
The 2027 Washington minimum wage will be $17.73 per hour, compared with $17.13 in 2026.
For a worker paid exactly the statewide minimum, the increase adds $24 to a 40-hour weekly paycheck before taxes and other deductions.
For someone working 52 weeks at 40 hours per week, the increase represents $1,248 in additional gross annual wages if the worker remains employed for the full year at the minimum rate.
The increase takes effect with hours worked on and after January 1, 2027.
| Year | Washington statewide minimum wage |
|---|---|
| 2025 | $16.66 per hour |
| 2026 | $17.13 per hour |
| 2027 | $17.73 per hour |
Washington’s current state rate is already higher than the federal minimum wage, which remains $7.25 per hour.
Why the Washington minimum wage is increasing
State law requires the Labor & Industries department to update the minimum wage annually using the Consumer Price Index for Urban Wage Earners and Clerical Workers, commonly called the CPI-W.
The agency compares the CPI-W measured in August of the previous year with the August index for the current year.
The resulting percentage change determines the statewide minimum wage adjustment for the following calendar year.
This formula means future Washington minimum wage rates will depend on inflation measured under the state’s required method rather than on a fixed multiyear schedule.
Local governments can require higher pay
The $17.73 rate is the statewide floor, not necessarily the rate every Washington employer will pay.
Local governments may establish higher minimum wages or additional labor standards for workers within their jurisdictions.
Labor & Industries identified Seattle, SeaTac, Tukwila, Renton, Bellingham, Everett, Burien and unincorporated King County as places that have higher local minimum wages or local wage rules.
Workers and employers should check the applicable city or county requirements before relying on the statewide rate.
When state and local rules differ, the more protective wage requirement may apply depending on the worker’s location, employer size and industry.
Overtime-exempt salary thresholds will also change
The Washington minimum wage is also used to calculate the salary level for certain executive, administrative and professional employees who may be exempt from state overtime protections.
Beginning January 1, 2027, large employers with at least 51 employees must pay qualifying overtime-exempt workers at least 2.5 times the state minimum wage.
That produces a minimum salary of $1,773 per week, or $92,196 per year, for an eligible exempt worker at a large employer.
Meeting the salary level alone does not automatically make a worker overtime-exempt.
Employees generally must also be paid on a salary basis and perform duties that meet the applicable exemption requirements.
Small employers with 50 or fewer workers will continue using a 2.25-times multiplier in 2027.
For those employers, the minimum salary for an otherwise qualifying exempt worker will be $1,595 per week, or $82,976 per year.
The small-employer multiplier is scheduled to rise to 2.5 times the state minimum wage in 2028.
Some computer professionals may qualify for an exemption using an hourly pay threshold instead of a salary threshold.
That hourly threshold will be $62.06 in 2027, regardless of employer size.
What the 2027 wage change means for younger workers
Washington law allows employers to pay 14- and 15-year-old workers 85% of the standard state minimum wage.
That youth rate will increase from $14.56 in 2026 to $15.07 an hour in 2027.
The reduced rate applies only when the worker and job meet the conditions established by state law.
Employers must still comply with restrictions governing the hours and types of work permitted for younger employees.
Rideshare driver pay will increase in Seattle and elsewhere
Separate minimum-pay standards for rideshare drivers will also change on January 1, 2027.
For trips within Seattle, drivers will receive at least 72 cents per passenger platform minute and $1.69 per passenger platform mile, or $6.34 per trip, whichever is greater.
For trips outside Seattle, the minimums will be 41 cents per passenger platform minute and $1.43 per passenger platform mile, or $3.68 per trip, whichever is greater.
The remittance fee supporting a nonprofit driver resource center will be 16 cents.
These standards are separate from the general Washington minimum wage and apply under the state’s rideshare compensation rules.
Other indexed workplace thresholds scheduled for 2027
The September 30 announcement also included several other wage-related figures tied to state law and inflation adjustments.
Washington will prohibit non-compete clauses beginning in July 2027.
For the six months before that prohibition takes effect, employees must earn at least $131,326 annually for an employer to enforce a non-compete agreement.
The corresponding threshold for independent contractors will be $328,316 during the January-through-June 2027 period.
The maximum leasing fee that adult entertainment establishments may charge for an eight-hour period will rise to the lesser of $159.64 or 30% of amounts collected by the entertainer.
Amounts collected for adult entertainment in a private performance area are excluded from the calculation described by the state.
What Washington employers and workers should do
Employers should update payroll systems, wage notices, scheduling tools and workplace posters before the new Washington minimum wage takes effect.
Businesses should also review whether employees classified as overtime-exempt will meet the applicable 2027 salary threshold and duties requirements.
Employers operating in more than one city should verify local wage rates because the statewide amount may not be the highest applicable rate.
Workers whose pay remains below the required rate after January 1, 2027, may ask their employer to correct the issue or file a wage complaint with Labor & Industries.
The agency accepts worker-rights complaints online, by mail and through local Labor & Industries offices.
Questions about Washington wage and hour requirements can be directed to the Labor & Industries Employment Standards Program at 360-902-5316 or 1-866-219-7321.
Key dates for the Washington minimum wage increase
- September 30, 2026: Labor & Industries announces the 2027 rates.
- January 1, 2027: The $17.73 statewide minimum wage takes effect.
- January 1, 2027: The updated overtime-exempt salary thresholds and rideshare pay standards begin.
- January through June 2027: Temporary non-compete salary thresholds apply.
- July 2027: Washington’s state prohibition on non-compete clauses begins.
The 2027 increase is an indexed adjustment, not a proposal awaiting approval, so employers should prepare to use the new rates on the effective date.
Frequently Asked Questions
When does Washington’s minimum wage increase to $17.73?
The statewide Washington minimum wage will increase to $17.73 an hour on January 1, 2027.
How much is Washington’s minimum wage in 2026?
Washington’s statewide minimum wage is $17.13 an hour in 2026, before the increase to $17.73 in 2027.
Will every Washington worker be paid at least $17.73 an hour in 2027?
Most covered employees must receive at least $17.73 an hour under state law, but some local governments require higher minimum wages.
What is the 2027 overtime-exempt salary threshold in Washington?
For large employers with at least 51 employees, the threshold will be $1,773 per week or $92,196 per year. Small employers will use a threshold of $1,595 per week or $82,976 per year.
What will younger workers earn under Washington’s 2027 minimum wage?
Eligible 14- and 15-year-old workers may be paid $15.07 an hour, which is 85% of the statewide minimum wage.
Fact-Checked: Verified against Washington Labor & Industries pages and current Bureau of Labor Statistics CPI-W information on October 1, 2026.
Disclaimer: This article provides general wage information and does not replace advice from Washington Labor & Industries or a qualified employment professional.
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