washington minimum wage 2020

Seattle businesses with 500 or fewer employees must pay $13.50 an hour if they pay $2.25 an hour toward medical benefits and/or their employee earns $2.25/hour in tips. The minimum wage for tipped employees is $13.50 per hour. Washington State Department of Labor & Industries. This is equivalent to $35,100 on an annual basis. Moreover, federal law states that employees in states with a higher minimum wage than the federal rate must receive the higher rate. Starting in September 2020, minimum wage increases will be determined by the Washington State Department of Labor & Industries. The City of SeaTac (located midway between Seattle and Tacoma) has its own minimum wage for hospitality and transportation workers. Washington State’s 2020 minimum wage rate of $13.50 per hour is $6.25 higher than the federal rate of $7.25. Overtime pay is 1.5 times the minimum wage for any hours an employee works over 40 hours in a seven day week; this equals out to $20.25 per hour. Washington State has made some substantial changes to the state minimum wage over the years, although some of these changes have not gone into effect yet. It will use the Consumer Price Index (CPI) to calculate a new Washington State minimum wage using a formula influenced by the rate of inflation. Younger workers, ages 14 or 15, can expect to be paid $11.47 an hour (85 percent of standard minimum wage). The Sunshine State is … Washington Minimum Wage 2021 Washington increased its minimum wage in 2021 from $12.50 to $13.69 per hour. Learn how to formalize and grow your business. Each year, you should examine your business and determine how those changes might affect you. Many of them are the result of increases that have been implemented in phases over the past few years, or indexed to inflation. Under the state law, however, employers can pay 85% of the minimum wage to workers aged 14 to 15. Washington State Minimum Wage: Soaring Above the Federal Rate. This means small businesses who must pay a minimum compensation of $12 per hour to employees who receive $3 per hour in additional compensation (in the form of tips or healthcare coverage) will have to start paying their employees the Seattle minimum wage instead of the minimum compensation amount. In Washington State tip credits are not legal, rather employees who earn tips also qualify for the minimum wage. When it comes to wages, Seattle delineates businesses by size: 500 employees or fewer and more than 501 employees. Additionally, there are other facets of the Washington minimum wage that make it unique. For 2021 and … This yearly adjustment went into effect until 2016, when the rate hit $9.47 per hour. This applies to agricultural and non-agricultural workers alike. Here’s the answer: If you receive the minimum wage, and worked during December but are paid in January for that time, then you’ll receive the 2020 minimum wage,” said Our Experts Recently Evaluated The Top 5 Credit Repair Companies Available. Subscribe and get details about the best credit repair companies, complete with pricing, transparency, and process! In 2015, the City of Tacoma decided on its own minimum wage increase schedule, which differs from the State of Washington’s schedule. This applies to agricultural and non-agricultural workers alike. Employers must pay all tips and … The minimum wage in Washington for 2020 is $13.50 an hour, which is well above the federal minimum wage of $7.25 per hour. Keep in mind that other counties, cities, and towns may have their own minimum wage laws. 2020 Minimum Wage in Washington: $13.50 There are certain exceptions under which a person may not earn the full minimum, but by state minimum wage law, employers in Washington must pay employees over the age of 16 at least $13.50 per hour. There’s a question about the minimum wage that the Washington State Department of Labor & Industries (L&I) receives a lot, especially at the start of a new year. Minimum Wage Increase. 2028, when the state threshold reaches 2.5 times the Washington State minimum wage. She’s been writing for Square since 2017 where she’s covered everything from the best software for restaurants to use to maximize profit, minimum wage laws across the country, and tips for entrepreneurs to maximize their impact. This is the pre-tax amount. That year, citizens voted for the Labor and Industries (L&I) Department to change the minimum wage each year based on the cost of living. Processing your own payroll is easier than you think. As of Jan 1, 2021, Washington's minimum wage will be $13.69 per hour — up from $13.50 per hour in 2020. Washington voters passed Initiative 1433 in 2016, setting increases to the state’s minimum wage every year from 2017 to 2020, when it will reach $13.50 an hour. Starting in September 2020, minimum wage increases will be determined by the Washington State Department of Labor & Industries. Here are a few things you may want to do: As always, to make sure your business is prepared and stays in compliance (for example knowing your employee’s rights or getting an EIN, you should discuss Washington minimum wage laws with your accountant and lawyer. The Fair Shot Minimum Wage Amendment Act of 2016 raises the minimum wage progressively each year according to the Consumer Price Index (CPI). Washington’s minimum wage is a great deal higher than the federal minimum wage of $7.25 per hour, and it will continue to increase. The threshold will increase incrementally each year until 2028 when it is expected to be about 2.5 times the minimum wage. The minimum wage did go up in 2021 from $13.50 per hour (in 2020) to $13.69 in 2021. Florida is upping its minimum wage twice in 2021: once on Jan. 1 and again on Sept. 30 thanks to Amendment 2, which voters approved on Election Day 2020. Seattle, Washington Local Minimum Wage for 2020, 2021 While Washington's state minimum wage is $13.69 per hour, Seattle has set its own, higher minimum wage rates that apply to employees of different classes of company who work Seattle. The Washington Minimum Wage is the lowermost hourly rate that any employee in Washington can expect by law. In the past week, minimum wages have risen in more than 20 states. Check out the Employer Launchpad. Washington labor costs are about to increase for Washington employers with minimum wage employees and, more significantly, for exempt employees currently in the salary range of $35,000 to $40,000 annually. The minimum wage provision does not apply in instances where other laws or regulations establish minimum wage rates for the ... $15.00 per hour beginning July 1, 2020 $5.00 per hour beginning July 1, 2020 MINIMUM WAGE RATES MINIMUM WAGE EXCEPTIONS OVERTIME PAY OVERTIME EXCEPTIONS. The city’s minimum wage went from $10.35 per hour in 2016, to $11.15 in 2017, to $12 in 2018, and increased again in 2019. This applies to workers who work for 40 hours each week. What’s This Charge On My Credit Card Statement? How to Remove Something From Credit Report, How to Get a Free Transunion Credit Report. 2020 Minimum Wage: $16.34 per hour. This is considered a substantial victory by workers advocates, despite disappointment that this number falls short of an Obama administration proposal that would have set the bar at $47,000 a year or just under $22.60 an hour. Cost of Living adjustments will be made in September 2020 and will go into effect January 1, 2021, to be made yearly thereafter. The minimum salary is amount you must pay some kinds of salaried workers to make them exempt from paid overtime, Minimum Wage: $13.69 an hour. These are corrected versions of tables initially posted on April 23, 2015. Consumer Price Index for Urban Wage Earners and Clerical Workers, paying certain workers less than the minimum wage, How to Make Money Taking Pictures With Your Phone or Camera. There are legal minimum wages set by the federal government and the state government of Washington. Younger workers, ages 14 or 15, can expect to be paid $11.47 an hour (85 percent of standard minimum wage). The law only requires you to pay the minimum wage of $13.25 (Portland metro area) per hour as of July 1, 2020, unless you have a contract or policy providing that you will pay more. Starting in Sept. 2020, L&I will make a cost-of-living adjustment to the minimum wage based on the federal Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). For 2021, the Washington minimum wage will be $13.69 per hour (an increase from the current $13.50 per hour). Washington state’s minimum wage is increasing 19 cents to $13.69 per hour starting Jan. 1, 2021, the first increase determined by inflation instead of a … But if your business is in Seattle, the requirements are different. To help you make sure you don’t slip up when doing your payroll, we’ve outlined the most common mistakes — and how to avoid them. ALL RIGHTS RESERVED. How About If I'm Not A Citizen Or I Don't Have A Green Card? For 2020, Washington’s minimum wage is $13.50 per hour. What Is the Difference Between Traditional Accounting and Computerized Accounting? The minimum wage is the entry-level hourly wage paid to employees by their employer. The state’s minimum wage applicability document designates many of the exceptions, and the L&I page on paying certain workers less than the minimum wage covers the rest. The new law increases the minimum wage to $15 per hour by Jan. 1, 2022, for employers with 26 or more employees. A programming… On July 1, 2020, Washington’s minimum salary threshold will increase from $250 per week to $675 per week, or 1.25 times the state’s minimum wage. State-by-state data on the demographic characteristics of affected workers are available here. 500 or less employees: Meredith is a freelancer writer based in New York City. $7.25 (Wyoming technically has a $5.15 state minimum wage but all employers subject to FLSA must pay the federal minimum) Of the 50 states (and Washington DC) listed above, 20 states stick to the federal minimum of $7.25, while the other 32 have increased the rate for their state. On April 4, California Governor Jerry Brown signed SB 3 into law. This short report accompanies the 2020 increases in the National Living Wage (NLW) and National Minimum Wage (NMW). Employers can pay employees who are under the age of 16 an hourly wage equal to 85% of the Seattle minimum. Washington D.C. followed suit, enacting a law to raise the minimum wage in the District to $15 per hour by July 1, 2020. There are certain exceptions under which a person may not earn the full minimum, but by state minimum wage law, employers in Washington must pay employees over the age of 16 at least $13.50 per hour. The Washington minimum wage 2020 increased $1.50 to $13.50, up from $12.00 in 2019. It’s one of a handful of cities across the country that has a plan to phase in a $15 minimum wage (San Francisco was the first to get there). The first threshold change occurred in mid-2020, but resulted in In Seattle the minimum compensation requirement will no longer apply by 2025. © FISCAL TIGER 2021. Worker Resources - File a Complaint; Investigation Process; Resolved Investigations. The minimum wage in Washington for 2020 is $13.50 an hour, which is well above the federal minimum wage of $7.25 per hour. Transportation Network Company Minimum Compensation Ordinance; Wage Theft; Investigations. The highest statewide minimum wages are $13.50 in Washington and $13.00 in California. Initiative 1433, approved by Washington voters in 2016, requires a statewide minimum wage of $11.00 in 2017, $11.50 in 2018, $12.00 in 2019, and $13.50 in 2020. With many states implementing multiyear minimum wage campaigns, it can be hard to stay on top of what you’re required to pay in your state. These employees include servers, bartenders, bussers, bellhops, and anyone else who earns tips. The weekly minimum wage for employees who work for 40 hours is $540. In 2021, Initiative 1433 stipulates that the state will continue changing the minimum wage annually based on the federal Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is tied to the rate of inflation. There are, however, some exceptions to the minimum wage requirement in Washington. Only those employees who were working for less than $13.25 per hour are legally entitled to a raise that brings them up to at least $13.25 per hour. The Washington minimum wage applies to workers age 16 and older. Start saving on payroll expenses today by learning about 3 easy ways to do payroll yourself. Businesses with over 501 employees are required to pay $16.39 an hour, regardless of if they pay toward medical benefits. As of January 1st, 2020 that salary threshold is set to jump to $35,568, or just over $17.00 an hour in Washington state. Excluding D.C., which has the highest minimum wage of $14.00, the average state minimum wage in 2020 is around $9.17, up from $8.68 in 2019. Some employees who are exempt from the state minimum wage act (MWA) include: Minimum wage in Washington state will continue increasing annually based on the rate of inflation. If that’s not the case, then the business must pay $15.75 an hour. In the meantime Seattle will maintain a gradual increase in minimum wage, continuing with $15 an hour in 2021. Seattle’s municipal ordinance established a different minimum wage for large and small businesses, and created an exception for small businesses, allowing them to factor employee health insurance coverage or tips into the wage. The Washington minimum wage 2020 increased $1.50 to $13.50, up from $12.00 in 2019. Agricultural “hand harvest” pieceworkers who worked for less than 13 weeks in the preceding year and who commute to the farm where they’re employed; White collar workers employed in executive, administrative, professional, and outside sales positions; Student workers who are employed part-time to defray some of their school expenses; Workers with disabilities whose earning capacity is impaired. Employees who qualify for the minimum wage also qualify for overtime pay. In 2014, Seattle voted to raise the minimum wage continually until 2020. You should do the research to determine which local wage laws may apply to you. Tips and Service Charges. Why Do So Many Businesses Use QuickBooks? 16 states pay $10.00 or more. The increase in the living wage rate (1.53%) has been calculated using the ... of Labor and Industries each September 30 regarding the rate by which Washington State’s minimum wage ateis obincrea d ff c v … Washington state and Seattle are raising wages consistently for the next few years. 5 min read Twenty-one states had minimum wage increases or cost of living adjustmentsat the beginning of 2020. Beginning 2021, and each year thereafter, L&I is required to make a cost-of-living adjustment to the minimum wage based on the CPI-W. Starting July 1, 2019, the Washington DC minimum wage was raised to $14.00 per hour and starting July 1, 2020, the wage will officially be $15. The state set up the weekly minimum wage requirement so that salaried employees or those who work on a piecemeal basis (payment for task completed) don’t end up making less money than they would if the nature of their employment qualified them for an hourly wage. Contract workers don’t qualify for the Seattle minimum wage, but, as of 2020, domestic contractors do. What's This Charge On My Credit Card Statement? The city’s current minimum wage went into effect on January 1, 2020. Here’s the list of the top 10 highest minimum wage states in 2021: California – Currently sitting at $14.00 per hour, the highest minimum wage state in 2021 is California. ... Washington, D.C. 20019 (202) 671-1880 In some states, employers can count tips as credits to help them meet the federal minimum wage requirement. The yearly minimum wage for salaried or piece work employees is $28,080. This new minimum wage will be announced on Sept. 30, and take effect Jan 1, 2021, and yearly thereafter. This hot-button issue can affect the way you run your business. As of 2020, however, Tacoma will abide by the state determined minimum wage of $13.50 an hour. The minimum wage has been rising each year since 2017, when Initiative 1433 took effect. The Department of Labor and Industries set the minimum wage for 2021 at $13.69 an hour, up from $13.50 this year. In 2019, large employers in Seattle with 501 or more employees paid a minimum wage of $16 per hour and small employers in Seattle with 500 or fewer employees paid a minimum wage of $15 per hour. In 2016, voters decided in favor of Initiative 1433, which set the wage at $11 per hour in 2017, $11.50 in 2018, $12 in 2019, and $13.50 in 2020. In 2013, the King County Superior Court ruled that these workers must receive a wage commensurate with the cost of living in the city. Washington state raised the minimum wage in 2018 and plans to do so every year until 2020. Here’s what you need to know. Washington – A close second place goes to Washington, boasting a minimum wage rate of $13.69. These tables are from Raising the Minimum Wage to $12 by 2020 Would Lift Wages for 35 Million American Workers, a paper by David Cooper of the Economic Policy Institute. In the history of the Washington minimum wage, the state’s journey toward the $13.50 minimum wage began in 1998. Since then, the city has continued to calculate increases to minimum wage rate for hospitality and transportation workers based on the rate of inflation. Minimum wage in Washington state is currently $13.69/hour. There is no tip credit permitted (all tips and service charges must be paid directly to employees, see Minimum Wage Act (RCW 49.46.020 (3)). Use our calculator to discover the Washington Minimum Wage. The minimum wage in Los Angeles and Washington, D.C., will be $15.00 per hour in … If an employee is exempt from Washington’s Minimum Wage Act, they’re in the same boat as employees who don’t qualify for overtime pay based on the nature of their job. But if your business is in Seattle, the requirements are different. Future Minimum Wage. From that point on, the state threshold will increase annually based on inflation by the same percentage that the Washington State minimum wage does.