Washington's Exempt Salary Threshold Rises to $80,168, Highest in Nation
Washington state's exempt salary threshold has increased to $80,168, significantly surpassing both the federal threshold of $35,568 and California's threshold of $70,304. The figure is projected to climb to approximately $93,000 by 2028, placing Washington as a national outlier among states on exempt employee salary requirements.
Joe Fain of the Bellevue Chamber of Commerce outlined the changes and their implications for local employers in a recent briefing. The rising threshold determines the minimum salary at which employers can classify workers as exempt from overtime pay requirements.
The widening gap between Washington's threshold and those of other states and the federal government presents compliance considerations for employers operating in the state, particularly small businesses adjusting to the increasing labor cost requirements.