The Department of Labor & Industries (L&I) has announced that the state minimum wage next year will be $13.69. It is currently $13.50—the highest state minimum wage in the country. 2020 is the last step of the phase-in of I-1433, so 2021 is the first year in which the minimum wage is adjusted by inflation.

(The cities of Seattle and SeaTac each have higher minimum wages that are also indexed to inflation, but they have not announced their minimums for 2021 yet.)

Meanwhile, Washington’s new overtime rules for executive, administrative, and professional employees (approved last year) are tied to the state minimum wage. Given today’s announcement, beginning Jan. 1, 2021, the new overtime salary threshold will be $42,712 for employers with 1–50 employees and $49,831 for employers with more than 50 employees. (The salary thresholds will increase until fully phased in in 2028; L&I has updated its implementation schedule to reflect the 2021 minimum wage.)

Although the new overtime threshold took effect July 1, 2020, the federal threshold is currently higher and, therefore, binding. The state threshold will be binding in Washington on Jan. 1, 2021.