Washington employers have new wage requirements to factor into their 2027 budgets. Beginning January 1, the statewide minimum wage will increase from $17.13 to $17.73 per hour, a 3.5% increase.

For businesses operating within the City of Bellingham, the local minimum wage will be $19.73 per hour. Bellingham’s minimum wage is set at $2 above the Washington State minimum wage. Employers outside Bellingham city limits generally remain subject to the statewide minimum wage of $17.73 per hour, unless another local minimum wage applies.

The change in the state minimum wage also increases the salary thresholds employers must meet for certain executive, administrative and professional employees to qualify as exempt from overtime requirements.

Beginning January 1, 2027:

· Employers with 1–50 employees: An overtime-exempt employee must earn at least $82,976.40 annually.

· Employers with 51 or more employees: An overtime-exempt employee must earn at least $92,196 annually.

Employers should use the final months of 2026 to review hourly wages, salaried-exempt positions, payroll budgets and staffing plans. It is also important to remember that salary alone does not automatically make an employee exempt from overtime; applicable salary-basis, salary-level and duties requirements must also be met.

Planning ahead can help businesses avoid surprises when the new requirements take effect January 1 and provide time to determine whether compensation, scheduling or employee classifications need to be adjusted.

For additional information, employers can visit the Washington State Department of Labor & Industries and the City of Bellingham’s minimum wage resources.