State salary threshold for overtime exemption and minimum wage update
The Washington State Labor and Industries (L&I) announced the minimum salary an employee must earn to be exempt from overtime. Effective January 1, 2023, employees must earn $65,478.40 annually ($5,456.55 monthly) to be exempt from overtime, regardless of duties and responsibilities. L&I determines the amount based upon a multiplier of the Washington state minimum wage and inflation, causing the final amount to potentially differ from published projected amounts. The L&I salary threshold will change annually through 2028.
Note: The minimum salary threshold does not apply bona fide teachers exempted under the Professional Exemption.
HRS will assist colleges/areas in evaluating the impact of these changes. Your assigned HRS representative will be in contact with you with additional information.
Please contact your HRS Service Team if you have any questions.
For additional information, visit Washington State Department of Labor and Industries Changes to Overtime Rules website and the Salary Threshold Implementation Schedule.
Minimum Wage Update
The state of Washington minimum wage will increase from to $14.49 to $15.74 per hour on January 1, 2023. This change will impact student and non-student hourly employees, state work study rates and some civil service employees.
Effective January 1, 2023, student and non-student hourly employees with a pay rate below minimum wage will be automatically increased to $15.74 per hour. Departments do not need to take action for the minimum wage increase. If other salary changes are needed, departments should process those actions in accordance with university policies. The Temporary Employment and Student Employment Classification/Compensation Plans are available on the HRS website.
The January 1, 2023, minimum wage increase will impact civil service salary range 30, step A, B and C; salary range 31, step A and B; and salary range 32, step A. Effective January 1, 2023, civil service employees at these impacted salary ranges and step will be adjusted to minimum wage. More information on the process and the civil service salary schedule will be available shortly.
Seattle and the City of SeaTac have minimum wage rates higher than the state minimum. For employees working in Seattle and the City of SeaTac, the local minimum wage rate applies as long as it remains higher than the state minimum. Departments that have employees physically working in these cities must ensure they are paid in accordance with the city minimum wage ordinance. Departments must monitor employee work location to ensure the pay rate is correct and make necessary adjustments.
Information regarding minimum wage can be found on the HRS website.