The Washington State Department of Labor & Industries (WA L&I) announced on September 30th, 2025 that Washington State’s minimum wage will be increased from the current $16.66 to $17.13 (per hour) starting on January 1st, 2026.
Under state law, the WA L&I is required to adjust the minimum wage each year based on the federal Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). For the 2026 increase, L&I compared the CPI-W from August 2024 to August 2025 and implemented a 2.8% rise.
Related Changes Coming in 2026:
- For workers aged 14-15: The law allows payment of 85% of the adult minimum wage, which equates to $14.56/hour in 2026.
- Overtime-exempt employees must earn at least 2.25 times minimum wage in 2026 — which equates to a weekly salary of about $1,541.70 or $80,168.40/year.
- For Rideshare Drivers: The minimum pay will also be increased starting January 1st, 2026. For trips within the Seattle area, drivers will earn 70 cents per passenger platform minute and $1.63 per passenger platform mile, or $6.12, whichever is greater. For trips outside of the Seattle area, drivers will earn 40 cents per passenger platform minute and $1.38 per passenger platform mile, or $3.55, whichever is greater.
For someone working full-time (40 hours/week, 52 weeks/year) at $17.13/hour, the annual earnings before tax would be about $35,610. While still modest by many standards, this increase helps offset inflation and rising costs.
We suggest to employers that they make sure payroll software and accounting systems are updated before January 1st, 2026 to reflect the above-mentioned changes. Also, to evaluate which employees may be considered exempt vs. non-exempt under state and federal law. And to plan for budget and pricing adjustments since these higher hourly rates will affect payroll, benefits, and overtime expenses.