Published October 18, 2021
2022 Salary Thresholds
January 1, 2022, the new state minimum salary thresholds for overtime exempt employees will again rise. The Washington State Department of Labor & Industries (L&I) determines minimum thresholds using a multiplier of the state minimum wage. For small businesses (1-50 employees), an exempt employee must now earn a salary of at least 1.75 times the minimum wage, or $1,014.30/week. For large businesses (51 or more employees), an exempt employee must continue to earn a salary of at least 1.75 times the minimum wage, or $1,014.30/week.
Washington employers will have to adhere to the state thresholds in 2022 since they are more favorable when compared to the federal threshold. The threshold multiplier will be phased in until it reaches 2.5 times the minimum wage in 2028, at which time increases will be determined by any changes in the minimum wage caused by inflation.
For more information, please visit L&I’s Overtime Rules Resources webpage.
2022 Minimum Wage Increases Announced
The Seattle Office of Labor Standards recently announced the 2022 minimum wage increases for large and small employers in Seattle. Effective January 1, 2022, the minimum wage for large employers, which are employers with more than 500 workers worldwide, will be $17.27 per hour. Large employers are required to pay this minimum wage regardless of contribution to medical benefits. For small employers, which employ 500 or fewer employees worldwide, the new minimum wage will be $17.27 per hour. An exception is that small employers can instead pay no less than $15.75 per hour in wages if they contribute at least $1.52 per hour toward employee medical benefits and/or the employee earns at least $1.52 per hour in reported tips.
Employers will be required to display an updated Labor Standards poster reflecting the new minimum wage increases. The OLS will mail a revised workplace poster to every business with a Seattle business license.
The statewide minimum wage increases to $14.49 for non-exempt employees outside Seattle in 2022.
For questions, please contact any member of Ryan Swanson’s Employment Rights, Benefits & Labor group.