WA's Minimum Wage Highest Among US States In 2023

SEATTLE — Washington will kick off 2023 with the highest minimum wage among U.S. states, while Seatac and Seattle lead among American cities.

The hourly wage floor for most Washington workers will rise to $15.74 on New Year's Day, up from $14.49 in 2022, according to the state Department of Labor & Industries. State law requires L&I to calculate each year’s minimum wage based on data from the U.S. Bureau of Labor Statistics’ consumer price index. Officials review year-over-year changes to the index each August.

The roughly 8.7 percent increase in the statewide minimum wage comes amid the largest surge in inflation in nearly 40 years, increasing the cost of consumer goods, including food and housing, across Western Washington.

Washington's new wage standard places it just ahead of California for the top spot among states, while Washington, D.C., will see its minimum wage rise to $16.50. The Evergreen State's wage requirements apply to employees 16 and older, while those who are 14 and 15 can be paid 85 percent of the minimum wage, amounting to $13.38 next year, L&I said.

Some cities, like Seattle and Seatac, have separate minimum wage laws, which are higher than the state’s baseline. Seatac will have the highest minimum wage of any American city in 2023, rising to $19.06, followed by Seattle at $18.69 — an increase of $1.42.

Updated rules for overtime, and new pay rules for rideshare drivers

New protections passed by the legislature this year requires minimum pay rates for rideshare drivers, which will be updated each September using the same price index.

In 2023, drivers working within Seattle city limits must earn at least 64 cents per passenger minute and $1.50 per mile, or at least $5.62 per trip if the calculated total is lower, according to L&I. Drivers working elsewhere in the state must be paid 37 cents per passenger minute and $1.27 per mile, or a minimum of $3.26 if the total is lower.

Updated overtime scales will also take effect next year, based on changes implemented in 2020, increasing the earning threshold for exemptions. Workers at companies with 50 or fewer employees can only be exempted from overtime if they earn at least $57,293.60 annually, while workers at large employers must earn at least $65,478.40.

Agriculture workers will have to work fewer hours to be eligible for overtime in the new year, with the new threshold set at 48 hours per week. In 2024, agriculture workers will be able to claim overtime after 40 hours.

Washington employers with at least 15 employees will also be required to detail compensation in new job postings in 2023, including pay scales or salary ranges and a description of benefits.