We wanted to remind Washington State employers, that, beginning January 1, 2025, the minimum wage for employees, contractors, and subcontractors, will increase to $20.29, unless exempt. This rate will be subject to annual adjustments based on inflation.

Key Points:

• Employers must calculate the number of employees based on the average number of people employed over the last 12 months, regardless of their location.

• Employers are required to document all the hours worked by employees and retain these records for four years.

• The minimum wage rate will be adjusted annually on January 1.

• The rate for employers, contractors, and subcontractors will also be adjusted annually based on inflation.

Exceptions for Small Businesses

• Employers with 15 or fewer employees and annual gross revenue of less than $2.0 million will have a reduced minimum wage of $17.29 per hour. This reduction will decrease by $0.50 annually until it is eliminated in 2030.

• Employers with 15 or fewer employees and annual gross revenue of $2.0 million or more, as well as employers with more than 15 but fewer than 500 employees, will have a reduced minimum wage of $18.29 per hour. This reduction will decrease by $1.00 annually until it is eliminated in 2026.

Contractors and Subcontractors

• Starting January 1, 2025, contractors and subcontractors awarded contracts valued at $100,000 or more must pay a minimum hourly wage of $20.29.

• Companies that fail to comply with the living wage requirements may face disqualification from bidding on King County contracts, as well as potential damages and contract termination.

For additional information:

• Ordinance 19762 
• K.C.C. 2.94.000
• WA Living Wage Ordinance Resources
• WA Minimum wage in unincorporated King County Resources
• WA Kings County Minimum Wage Announcement

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