Washington Overtime Exempt Salary Threshold: $1,541.70 a Week in 2026 and Two Tiers From 2027
Washington Overtime Exempt Salary Threshold: $1,541.70 a Week in 2026 and Two Tiers From 2027
If you pay a salaried employee in Washington and want to classify that person as exempt from overtime, the salary level is the first number you have to clear. For 2026, the Washington overtime exempt salary threshold is $1,541.70 a week, or $80,168.40 a year. Starting January 1, 2027, the threshold splits into two tiers based on how many employees you have. This guide covers the figures, the duties tests that sit alongside them, the overtime rules that apply to everyone else, and what to confirm before you change anyone's pay status.
Disclaimer: This guide is informational content. It is not legal, employment, or tax advice. Wage and hour rules have exceptions and depend on the facts of each job. For a specific employee or pay decision, consult an employment attorney or a qualified CPA.
The 2026 exempt salary threshold
For 2026, the Washington exempt salary threshold is $1,541.70 a week. That amount equals 2.25 times the state minimum wage of $17.13 an hour, and it applies to all employers regardless of size. Expressed annually, the threshold is $80,168.40. You can check the math by dividing that annual figure by 52 weeks, which returns $1,541.70.
An employee paid below the weekly threshold cannot be classified as exempt under the salary test, even if the job duties look executive, administrative, or professional. That employee is owed overtime at 1.5 times the regular rate for hours over 40 in a workweek. Many small businesses discover this problem during a payroll audit, when a salaried bookkeeper or office coordinator turns out to earn less than the weekly minimum.
The 2027 two-tier schedule
Beginning January 1, 2027, the threshold depends on your headcount. The state minimum wage also rises to $17.73 an hour that year, and the exempt threshold moves with it. The table below shows the figures as they stand.
| Employer size | Period | Formula | Weekly salary minimum |
|---|---|---|---|
| All employers | 2026 | 2.25 times $17.13 | $1,541.70 |
| 1 to 50 employees | Starting January 1, 2027 | 2.25 times $17.73 | $1,595.70 |
| 51 or more employees | Starting January 1, 2027 | 2.5 times $17.73 | $1,773.00 |
| 1 to 50 employees | 2028 | 2.5 times the state minimum wage | Confirm the 2028 dollar figure with L&I |
The 2028 row matters for small employers. In that year, employers with 1 to 50 employees reach the 2.5 times multiplier, so the tier gap closes. Because the weekly figure follows the state minimum wage, it will change whenever that wage changes. Do not assume the 2027 number carries forward unchanged.
How the tier comparison works in practice
Consider two employers, each paying a salaried operations manager $1,600 a week starting in 2027. The first has 40 employees. Its threshold is $1,595.70, so the $1,600 salary clears the salary test. The second has 60 employees. Its threshold is $1,773, so the same $1,600 salary falls short, and the employee must receive overtime if they work more than 40 hours in a workweek, regardless of duties.
Headcount is therefore not a detail to guess at. Confirm with L&I how employees are counted, including part-time staff and workers in multiple locations, before you assign a tier. If your headcount is close to the 50 or 51 line, set a reminder to recheck it each time you hire or separate employees.
The salary test is only one part
Meeting the dollar threshold does not make an employee exempt. Washington also applies duties tests, which look at what the employee actually does. Exempt categories generally include executive, administrative, and professional work. The test focuses on the employee's primary duty and on the authority and judgment the job requires. An employee earning well above the threshold can still be non-exempt if most of their work is routine production, clerical, or customer service tasks that do not meet the duties standard.
The practical rule is to classify by duties first, then confirm the salary. A job title such as manager or analyst does not decide the question. Write down the duties the employee performs, compare them to the relevant test, and keep that record with the classification decision.
Hourly computer professionals
Computer professionals who are paid by the hour follow a separate path. To be exempt on an hourly basis, they must earn at least 3.5 times the state minimum wage. In 2026, that works out to $59.96 an hour, calculated from the $17.13 minimum wage. The hourly figure rises as the minimum wage rises, so confirm the 2027 and 2028 amounts with L&I before you set pay for those years.
Hourly pay does not replace the duties analysis. A computer professional still has to perform the kind of work that qualifies for the exemption. If an employee is paid by the hour and falls below the 3.5 times figure, the exemption is unavailable for that employee in that period, and overtime rules apply in full.
Overtime rules that apply to every employer
Once an employee is not exempt, the following rules govern their pay:
- Overtime is 1.5 times the regular rate for hours worked over 40 in a 7-day workweek.
- This rule applies to every employer, regardless of size.
- Washington does not require daily overtime, with the exception of certain public works projects.
- Private employers cannot substitute compensatory time off for overtime pay.
Because overtime is measured by the workweek, a long day does not by itself create an overtime obligation under the general rule. Hours over 40 in the workweek do. Track hours by workweek, not by pay period, and confirm with L&I how your payroll schedule interacts with the 7-day workweek definition if your pay periods do not line up with it.
Agriculture
Agricultural employers have been on a 40-hour overtime threshold since January 1, 2024. If you employ farm workers, confirm with L&I how that rule applies to your specific operation and workforce before you set schedules or pay.
Common mistakes to avoid
- Treating salary alone as the test. Clearing the dollar threshold does not satisfy the duties test.
- Using the 2026 number in 2027. The threshold changes on January 1, 2027, and it changes again with the minimum wage.
- Offering comp time. Private employers cannot give time off in place of overtime pay.
- Ignoring headcount changes. Crossing 50 employees changes which tier applies to you.
- Skipping documentation. Keep a written record of duties and salary for each exempt position.
Steps before you classify an employee as exempt
- Confirm the employee's weekly salary against $1,541.70 for 2026, or against the 2027 tier that matches your headcount.
- Describe the employee's primary duties and compare them to the duties test for the role.
- For hourly computer professionals, confirm the hourly rate meets 3.5 times the state minimum wage.
- Count your headcount using the method L&I confirms, and recheck the tier whenever you hire or separate employees.
- Ask L&I whether any city where you operate applies a local minimum wage that affects your salary threshold.
- Document the decision, then review it each January when the state minimum wage changes.
Frequently asked questions
Does the threshold change if the employee works in a city with a higher minimum wage?
Confirm this with L&I before you set pay. The state rule is built on the state minimum wage, and local wage ordinances may raise the local floor. Do not assume the state figure is the only number that applies in your city.
Can I pay a salary below the threshold and make up the difference with bonuses?
Confirm this with an employment attorney. The threshold is a salary test, and how bonuses and other pay count toward it depends on the rules in effect and on how the pay is structured. Do not assume a bonus will satisfy the test.
Do federal rules apply too?
Federal wage and hour rules also apply to most Washington employers. Ask an employment attorney how federal and state rules interact for your workforce, since the two sets of rules may not line up exactly.
Where to confirm the numbers
The Department of Labor and Industries (L&I) is the agency to confirm the exempt threshold, the 2027 tier rules, the 2028 figures, and any future changes. Check its published guidance and ask it directly before you change any employee's classification. Figures can change, so treat this guide as a snapshot and verify current amounts on the agency's pages.
For general planning help beyond wage rules, the Washington Small Business Development Center (Washington SBDC) at wsbdc.org can point business owners toward resources for hiring and payroll planning. For a complex classification question, such as a role that straddles exempt and non-exempt duties, bring the job description and pay records to an employment attorney or CPA.
Final reminder: This guide is informational and is not legal, employment, or tax advice. Verify every figure with L&I before you make payroll decisions, and consult a qualified professional for your specific situation.