Minimum wage increases on Jan 1st – What you need to know from Seattle accounting firm Halsey Resources

An increase to $13.69 per hour for the Washington State minimum wage was recently announced. The change is based on inflation versus the voter-approved ballot initiative that set increases over the next four years. This change will be enacted on January 1, 2021.

Please note that within the city of Seattle, the amount varies from $15-$16.69 per hour.  Click here to view Seattle minimum wage chart.

This will also have implications for many salaried employees that are currently exempt from overtime.

Salaried employees (executives, administrative, professional, and computer workers) will be required to make a salary above a predetermined amount to stay in an overtime-exempt classification. The predetermined number will increase based on the number of workers at a company/business.

What to consider as an employer

Employers need to review all exempt employee salary records and make sure they are going to meet the forecasted requirements (new minimums) and consider reclassifications, financial adjustments, and increases in forecasted payroll expenses.

If you need any help preparing for these changes, please contact Halsey Resources. We are always here for you!

RESOURCE: https://lni.wa.gov/workers-rights/wages/minimum-wage/