The Department of Labor & Industries (L&I) has announced that the state minimum wage will increase from the current $14.49 an hour to $15.74 an hour in calendar year 2023. The 8.6% increase is the largest non-step increase since the minimum wage has been indexed to inflation.

In 1998, when the prevailing minimum wage was the federal minimum of $5.15, Washington voters approved I-688. The initiative increased the state minimum to $5.70 in 1999 and $6.50 in 2000 and indexed it to inflation thereafter. In 2016, when the state minimum was $9.47, voters approved I-1433. I-1433 increased the minimum to $11.00 in 2017, $11.50 in 2018, $12.00 in 2019, and $13.50 in 2020, and indexed it to inflation thereafter.

Washington’s state minimum wage is currently the highest in the country. Additionally, Seattle and SeaTac have higher city minimum wages, but neither have yet announced their minimums for 2023. In 2022, Seattle’s minimum wage is $15.75 an hour for employees of small employers who do not earn tips or medical benefits. Seattle’s minimum is $17.27 an hour for everyone else. In 2022, SeaTac’s minimum wage for hospitality and transportation employees is $17.54 an hour.

L&I also announced overtime exemption salary thresholds for executive, administrative, and professional (EAP) employees. Under the 2019 overtime rules, the salary threshold is tied to the state minimum wage. Consequently, in 2023, EAP employees of small employers must earn $57,293.60 for the year in order to be exempt from overtime. EAP employees of large employers must earn $65,478.40 to be exempt.