*Washington’s MINIMUM WAGE UPDATE: $17.13/hr in 2026!

October 7, 2025

Washington state’s minimum wage will rise 2.8% in 2026 to $17.13/hr. This increase will take effect Jan. 1, 2026. Washington state’s current minimum wage is $16.66 – the highest in the nation.

Because local governments can set minimum wages higher than the state, look for increases in minimum wage if you own a business in Seattle, SeaTac, Tukwila, Renton, Bellingham, Everett, Burien, and unincorporated King County.

The federal minimum wage remains at $7.25 an hour.

More information about the minimum wage is available on L&I’s website, along with details about overtime, rest breaks, meal periods, etc.

The Impact on Who Is Eligibile to be Classificed as EXEMPT from Overtime Pay Requirements….

L&I uses changes in the minimum wage to calculate the minimum salary certain types of employees must earn to be considered exempt from overtime pay – impacting people categorized as executive, administrative, general or computer professionals. All employers must pay exempt workers at least 2.25 times the minimum wage in order to maintain their exempt status.

In 2026, an exempt employee needs to earn at least $1,541.70/wk ($80,168.40/year) to be classified as exempt from the overtime requirement. For computer professionals the threshold for exempt status is 3.5 times the minimum wage, or $59.96 per hour.

What Happens to Younger Workers?

By WS law, employers are allowed to pay 85% of the state’s minimum wage to workers ages 14-15. For these younger workers the minimum wage will be $14.56/hr in 2026.

Impact on the Enforceability of Non-Compete Agreements?

L&I uses the minimum wage to calculate the minimum annual salary threshold that is needed to enforce a non-compete clause. The new threshold in 2026 to be subject to non compete agreements will be $126,858.83 for W2 workers. For independent contractors, the threshold pay that must be reached in order to require a non compete is $317,147.09.

PACE Staffing Network is one of the Puget Sound’s premier staffing /recruiting agencies, helping Northwest employers find and hire employees based on the “right fit” for over 50 years.

A 5-time winner of the coveted “Best in Staffing” designation, PACE is ranked in the top 2% of staffing agencies nationwide based on annual surveys of customer satisfaction. PACE services include temporary and contract staffing, temp to hire auditions, direct hire professional recruiting services, Employer of Record (payroll) services, and a large menu of what we call HIRING HELP that allows clients to purchase a variety of candidate screening and assessment services on an ad hoc basis, augmenting your internal staffing or hiring resources.

To learn more about how partnering with PACE can make a difference to how who and how you hire, contact our Partner Services and Solutions team at 425-637-3312, email us or visit our website.

Are you a member of our Thought Leaders NETWORK (TLN)?

If you’re not already getting our bi-monthly emails featuring information on a variety of topics related to the people side of your business, we’d like to invite you sign up to become a part of our NETWORK. Fill out the form below and you’ll get a featured blog written by either a member of our team or other local staffing/hiring experts. TLN is a quick easy way for the leaders of small to mid-sized companies to keep abreast of what’s happening in the local job and candidate marketplace.

"*" indicates required fields

Instagram

This field is for validation purposes and should be left unchanged.

Company Name

Name*

First Last

Job Title

Email Address*