What changes for Washington employers on 1 January 2027
Four things change for Washington employers on 1 January 2027. None of them is complicated on its own, but each one quietly breaks a payroll setup that was correct the week before. Here is the list, with the figures.
The minimum wage goes to $17.73
The state minimum wage rises from $17.13 to $17.73 an hour, a 3.5% increase announced by Labor & Industries. Overtime past 40 hours in a week is owed at time and a half, so the overtime rate moves with it.
Several cities set a higher local rate than the state. Seattle, SeaTac, Tukwila, Renton, Bellingham, Everett, Burien and unincorporated King County all do. If you employ people in any of those, the local rate is the one that applies, not the state figure.
A salary stops being enough at $82,976
This is the one that catches people out. Putting someone on a salary does not make them exempt from overtime. In Washington the salary has to clear a threshold set as a multiple of the minimum wage, and the role has to pass a duties test as well.
From 1 January 2027 that threshold is $82,976 a year for employers with 1 to 50 staff, and $92,196 at 51 or more. A house manager on $55,000 working 50-hour weeks is owed overtime on every hour past 40, salary or not.
Employers with 1 to 50 staff move up to the higher multiple in 2028, so a salary that passes next year may not pass the year after. Meeting the salary is necessary but not sufficient — some roles are never exempt whatever they are paid.
The Paid Family and Medical Leave premium rises to 1.2%
The PFML premium goes from 1.13% to 1.2%. It is a small change to the rate, but it has to be applied from the first pay run of the year, not corrected later.
Paid leave job protection reaches employers with 15 staff
Job protection under Paid Family and Medical Leave extends to employers with 15 or more staff, down from 25. This is about job protection, not about who pays premiums — the two are often confused.
If you sit between 15 and 24 employees, this is new to you on 1 January 2027 and nothing about your premium changes to signal it.
What to check before the first pay run of the year
- Every hourly rate is at or above $17.73, or the higher local rate where one applies.
- Every salaried person you treat as exempt clears $82,976, or $92,196 at 51 or more staff — and passes the duties test.
- The PFML rate in your payroll system reads 1.2%.
- If you have 15 or more staff, you know job protection now applies.
This guide is general information about Washington law, not legal or payroll advice, and it does not create a professional relationship. Clear Filings is an independent service provider and is not affiliated with or endorsed by any government agency. Speak to an employment lawyer about your own circumstances.
Common questions
What is the Washington minimum wage in 2027?
$17.73 an hour from 1 January 2027, up from $17.13. Several cities, including Seattle, Tukwila, Renton, Bellingham, Everett and Burien, set a higher local rate that applies instead.
What salary makes someone exempt from overtime in Washington in 2027?
$82,976 a year for employers with 1 to 50 staff, and $92,196 for employers with 51 or more. The salary alone is not enough: the role must also meet the duties test.
Does the overtime threshold change again after 2027?
Employers with 1 to 50 staff move to the higher multiple of the minimum wage in 2028, so a salary that is compliant in 2027 may not be in 2028.
What is the PFML premium for 2027?
1.2%, up from 1.13%. It applies from the first pay run of the year.
Let us handle the January changes
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