Washington state and Seattle set to increase minimum wages in 2027

Washington state's minimum wage is scheduled to rise to $17.73 per hour on January 1, 2027, representing a 3.5 percent increase. The Washington State Department of Labor & Industries announced that the adjustment is based on the federal Consumer Price Index for Urban Wage Earners and Clerical Workers. This increase also affects the minimum salary required for overtime-exempt workers; for large employers with 51 or more employees, the exempt salary threshold will rise to $1,773 per week, or $92,196 annually.

In Seattle, the local minimum wage is set to reach $22.14 per hour in 2027. This citywide mandate applies to all businesses regardless of size. While supporters argue higher wages are necessary to combat the high cost of living and prevent poverty, some business leaders have expressed concern. Reports indicate that rising labor costs have contributed to restaurant closures in Seattle and may influence business formation patterns in surrounding suburbs.