WA State Salary Threshold Changes & Minimum Wage
Effective January 1, 2026, If you have employees whose salaries fall below $79,934.40 annually, you will have to decide how to classify and pay them. The temporary reduced threshold for employers with fewer than 50 employees will expire, and all employers must now meet the same compliance standards.
Here are your three options for employees who fall under the threshold:
Salaried Non-Exempt – Keep paying them a salary, but pay overtime (OT) for any hours worked over 40 in a week. Overtime is based only on actual hours worked (PTO and holidays do not have to be counted toward overtime).
Hourly Non-Exempt – Switch them to hourly pay and compensate them for every hour worked, including overtime for anything over 40 hours in a week.
Increase Salary – Raise their pay to meet or exceed the $79,934.40 annual threshold so they can remain exempt from overtime rules.
Meal and Rest Break Compliance
All non-exempt employees (whether hourly or salaried) must follow these rules:
Accurate Timesheets – Employees must record start and end times, along with meal periods, on their timesheets.
Meal Breaks – At least a 30-minute meal break after 5 hours worked (paid or unpaid). The break must be uninterrupted—no eating lunch at your desk while working.
Rest Breaks – One paid 10-minute break for every 4 hours worked.
Meal Break Waivers – Employees (not employers) may choose to waive their meal break, but the decision must be documented with a signed waiver request. Example: An employee working a 6-hour shift might choose to skip lunch to leave earlier.
Why This Matters Now
Until 2026, smaller employers had a grace period with a reduced salary threshold for non-exempt employees. That grace period is now over, and every employer is expected to comply with the full standard.
If you’re unsure how to update your policies or pay practices, we can help. Consistent documentation, updated handbooks, and clear communication with staff will help ensure compliance and avoid costly penalties.
WA Minimum Wage
Effective January 1, 2026, the minimum wage in the state of Washington is $17.13/hr. Please note that some cities have a higher minimum wage