Online Payment Contact Us
Employment Law & Litigation

2027 Washington Employment Law Update – Minimum Wage, Exempt Employees, and Noncompete Updates

Roxanneh Mousavi
Oct 23, 2026

Minimum Wage

Beginning on January 1, 2027, the minimum wage in Washington state will be $17.73 per hour, up 60 cents from 2026.  The minimum wage for 14-and 15-year-old workers will be $15.07 an hour, up 51 cents from 2026.  In addition to the statewide minimum, various cities and counties have increased minimum wages.

City or County 2027 Minimum Wage Notes
Seattle $22.14 per hour
SeaTac $21.47 per hour (only Hospitality and Transportation workers)
Tukwila $22.45 per hour
Renton Beginning January 1, 2027, the minimum wage for large and midsize employers will increase to $22.28 up 71 cents from 2026. Large Employer -More than 500 employees worldwide and certain franchises

 

Mid-Size Employer – At least 15 but no more than 500 employees worldwide or over $2 million of annual gross revenue in Renton

 

Employers that do not fall within the Large or Mid-Size Employer described above are not covered by the new minimum wage rates but must continue to meet the State of Washington minimum wage requirements.

Everett Large employers: $21.52 per hour

 

Other covered employers: $20.52 per hour from January 1 – June 30, 2027, and $21.52 per hour from July 1 – December 31, 2027

Large employers are those with 500+ employees; Other Covered Employers are those with 15-499 employees OR $2M+ annual revenue in Everett
Bellingham $19.73 per hour The city minimum wage will be set at $2.00 above the applicable Washington State minimum wage effective on January 1 every year.
Burien 2027 Burien large employer minimum wage hourly rate: $22.49 per hour

 

2027 and beyond Burien medium employer minimum wage hourly rate: Equal to the then-current large employer rate

 

2027 Burien small employer minimum wage hourly rate: $20.49 per hour

A large employer has more than 500 employees, regardless of where they are employed, including franchises.

 

A mid-sized employer employs 16-500 employees, regardless of where they are employed, including franchises.

 

Beginning January 31, 2027, employers must certify their compliance with BMC Chapter 5.16 annually.

King County (unincorporated) $21.57 per hour Exception: Employers with 15 or fewer employees and an annual gross revenue of less than $2 million can pay $2.00 less, or $19.57 per hour.

 

Exempt Employees

The minimum annual salary threshold for exempt employees statewide will also rise on January 1, 2027.  For small employers (up to 50 employees) the minimum annual salary multiplier will stay 2.25 times the minimum wage, or $82,976.40 a year.  For large employers (more than 50 employees) the multiplier will increase to 2.5 times the minimum wage, or $92,196.00 a year.

Minimum pay for Rideshare drivers

The minimum pay for rideshare drivers in Washington state will increase on January 1, 2027, as follows:

  • For trips in Seattle, drivers will earn the greater of either (1) $0.72 per passenger platform minute and $1.69 per passenger platform mile, OR (2) $6.34 per trip.
  • For trips outside Seattle, drivers will earn the greater of either (1) $0.41 per passenger platform minute and $1.43 per passenger platform mile, OR (2) $3.68 per trip.
  • The remittance fee of $0.16 will be used to fund a nonprofit center to support rideshare drivers.

Noncompete agreements

Effective June 30, 2027, noncompetition agreements will be unenforceable in the State of Washington.  Between January and June 2027, the annual salary threshold for employees will be $131,326.59 for an employer to enforce a noncompetition agreement.  This threshold for independent contractors from January through June 2027 will be $328,316.49.  Employers with existing noncompetition agreements for current or former (if still within the enforcement period as of July 1, 2027) employees or independent contractors, must send a written notice to the employee or former employee or independent contractor stating that the noncompetition clause is void and unenforceable by October 1, 2027.

Job Protection for Employees on Paid Family and Medical Leave

Beginning on January 1, 2027, employers with 15 or more employees must provide job protection benefits to employees on paid family or medical leave under Washington law.  Currently the threshold is 25 employees, the threshold will drop to 8 employees in 2028 where it will remain.

Other Updates

On January 1, 2027, the Washington Healthy Starts Act will apply to all employers regardless of size.  The Healthy Starts Act requires certain pregnancy and postpartum related accommodations.  The Fair Chance Act, which regulates background check and prescreening for applicants will apply to all employers.

If you have questions about how to comply with these updates to the law in 2027 for your business, the employment team at Lasher is here to help.

Roxanneh Mousavi
Oct 23, 2026

Insights from Employment Law & Litigation

Dress for Success: Choosing the Fiduciary or Non-Fiduciary Hat

Employers that sponsor health and welfare plans for their employees rarely run them alone. They hire insurers, third-party administrators, and other service providers to process claims, calculate benefits, make claims decisions, answer participant questions, update plan participants, and keep the plan running day to day. Each of these providers faces a critical decision at the […]

Read More
The ERISA Preemption Defense for Service Providers

To avoid ERISA’s strict limitations in the types of relief available and other procedural hurdles, many dissatisfied employees and other plan participants attempt to obtain employee benefits by filing state law claims.  For example, instead of making a claim for benefits under ERISA, dissatisfied employees often assert claims for intentional or negligent misrepresentation, negligence in […]

Read More
Washington’s New Noncompete Ban: Deadlines, Risks, and Next Steps for Employers

In March, the Washington Legislature passed HB 1155, a bill banning noncompetition agreements in Washington effective June 30, 2027.  Washington will join California, Minnesota, North Dakota, Oklahoma, Wyoming, and a few other states that prohibit or significantly restrict noncompetition covenants. The bill bans noncompetition agreements for all employees and narrows the scope of nonsolicitation agreements. […]

Read More

150

Years of combined experience

Best Law Firms

Ranked regionally in 10 practice areas in the 2025 edition of Best Law Firms®

Band 1

In the Chambers Global High Net Worth Guide in Family/Matrimonial Law

Trusted Legal Support for Your Business and Family

Our experienced Seattle attorneys provide strategic legal guidance for businesses and individuals. Whether you are navigating a complex transaction or facing a sensitive family law issue, we are here to help each step of the way.

Contact Us