Paying folks lower than present minimal wage charges can set your small business up for fines, lawsuits, and a nasty status — even when it’s an sincere mistake. 

Staying on prime of minimal wage legislation is essential. However common adjustments at each the state and native ranges make it exhausting to maintain up with Washington’s minimal wage. What’s extra, each wage hike means paperwork, quantity crunching, and adjusted budgets. 

That’s why we’ve written this information simplifying Washington’s advanced minimal wage legal guidelines for small enterprise homeowners. We’ll clarify every part it’s essential to know to remain updated with the present statewide and native minimal wage and prepare for upcoming adjustments to base pay charges. Then, we’ll present you find out how to lay the groundwork for a compliant, thriving enterprise that may climate wage hikes.

Understanding Washington’s minimal wage 2024

Washington state has one of many highest minimal wage charges within the US — and a few cities mandate even larger base pay for employees. Which means there’s additional stress on companies to remain updated, prioritize compliance, and funds for elevated labor prices.

Let’s break down precisely what small enterprise homeowners must know. 

Present state minimal wage in Washington 

The statewide minimal wage in Washington is $16.28 per hour as of January 1, 2024.

Extra time kicks in after 40 hours of labor in a hard and fast 7-day workweek. So in accordance with Washington labor legal guidelines, most workers will must be paid 1.5 instances their regular hourly wage for any time beyond regulation hours, which means time beyond regulation hours will price you $24.42 at minimal pay charges.

Seattle: $19.97/hr for giant employers (501+)

$19.97 per hour for small employers (500 or fewer) in the event that they don’t pay a minimum of $2.72 per hour towards the worker’s medical advantages or the worker doesn’t earn a minimum of $2.72 per hour in ideas

$17.25  for small employers (500 or fewer workers) in the event that they do pay a minimum of $2.72  per hour towards the worker’s medical advantages or the worker earns a minimum of $2.72 per hour in ideas

SeaTac Hospitality and Transportation Business : $19.71/hr.

Tukwila:  $20.29/hr

Exceptions to the minimal wage in Washington state

Although the bottom charge applies to most employees throughout the state, there are some exceptions. 

For instance, 14 or 15-year-old workers may be paid 85% of the minimal wage, which works out at $13.84 per hour for 2024.

Companies may also apply for a sub-minimum wage certificates permitting them to pay lower than minimal wage in sure circumstances. These embody: 

• On-the-job trainees, with the right certification, may be paid 85% of the minimal wage (that’s $13.84 per hour, according to present wage charges). 

• In sure instances, scholar employees and learners, with a certificates from their instructional establishment, may be paid 75% of the minimal wage (which involves $12.21).

• Employers registered with an authorized apprenticeship program can submit a request to pay apprentices lower than the usual minimal wage. 

It’s essential to notice that typically, there isn’t a exception to the minimal wage for tipped employees in Washington, and no tip credit score out there for employers. The Division of Labor and Industries mandates that servers, bar employees, hairdressers, and different tipped professions should obtain the usual hourly minimal wage, along with any gratuities or service fees they’re entitled to. 

Native minimal wage charges 

On prime of statewide laws, some cities in Washington mandate larger minimums based mostly on their elevated price of dwelling. 

Particularly, Seattle and SeaTac implement their very own minimal wage guidelines.

Seattle minimal wage 2024

Relying on employer dimension, Seattle mandates a minimal wage between $17.25 and $19.97 per hour in 2024. 

Massive employers with over 500 employees should pay a minimum of $19.97.

Proper now, in Seattle, small employers will pay a minimal wage of $17.25  supplied in addition they pay a minimum of  $2.72 per hour towards medical advantages or the employee earns a minimum of $2.72 per hour in ideas. Nevertheless, by 2025, employers will not be capable of rely ideas or medical profit contributions as a part of the minimal wage. 

Beneath Seattle’s Minimal Wage Ordinance, town adjusts its wage flooring on January 1st yearly based mostly on inflation. 

SeaTac minimal wage 2024

The Metropolis of SeaTac enforces a particular minimal wage for hospitality and transportation employees, which works out at  $19.71 per hour for coated workers, as of Jan 1, 2024.  

Hospitality and transportation employers ought to take notice that this minimal will increase every year according to the Shopper Value Index (CPI) of the yr earlier than. 

How small companies can navigate minimal wage adjustments 

Shifting minimal wage legal guidelines can create challenges for small enterprise compliance and profitability. Use these 5 tricks to ensure you’re paying your folks accurately and pretty whereas offsetting the affect of rising labor prices.

1. Keep updated with minimal wage laws

Recurrently examine the official Washington Division of Labor and Industries webpage to ensure you’re knowledgeable on upcoming adjustments to minimal wage charges. You too can subscribe to their publication to ensure you don’t miss something. 

If there are proposed adjustments to wage laws that haven’t gone via but, you might even be capable of form the ultimate legislation by responding to public requires feedback and explaining how the proposals have an effect on small companies like yours. 

Be sure to additionally join updates out of your metropolis/county authorities on upcoming minimal wage adjustments. Native legal guidelines mandate the very best wages in Washington, so it’s essential to ensure you’re ready for the will increase, particularly in cities like Seattle and SeaTac. 

2. Analyze the true price of wage hikes

Calculate the entire payroll prices throughout all affected employees members to grasp precisely what minimal wage adjustments will price your small business. Add the figures into your funds for the yr to see if there’s a shortfall you’ll must make up in different methods. 

3. Audit processes to chop prices 

Look to chop down on spending the place doable to cope with larger pay charges. It’s possible you’ll need to get strategic about your worker scheduling, ensuring you’re not rostering in pointless workforce members throughout off-peak instances.  

Time monitoring is one other nice approach to keep on prime of labor prices. Time clock instruments assist you lower down on wage theft and establish time sinks that make your small business much less environment friendly. Homebase time clock and scheduling options may even provide you with a warning when your individuals are approaching time beyond regulation limits, so you possibly can ensure you’re not paying excessive time beyond regulation prices except they’re actually essential. 

4. Show office posters

Be sure to’re totally compliant with Washington labor legal guidelines by displaying the mandated posters prominently in your office informing workers of their rights. 

Washington employers aren’t presently required to show a Washington minimal wage poster, however they’re required to show a federal minimal wage poster. That doesn’t imply they solely must pay the federal minimal wage charge, although — the Washington or native metropolis minimal wage charge nonetheless applies. 

5. Doc every part

Rigorously doc all compliance-related info, together with hours labored, pay charge, time beyond regulation, breaks, and worker standing modifications. Thorough paper trails defend companies. 

Devoted software program for payroll processing and timesheets could make this course of straightforward. 

Homebase helps small enterprise compliance

Attempting to manually adapt to altering minimal wage hikes takes priceless time from small enterprise homeowners, particularly if a number of places are concerned. 

Homebase supplies easy-to-use automated options and customised help, which streamlines the method and protects you from blind spots. 

With Homebase, you possibly can: 

• Routinely apply the best wage guidelines for every location






• Deal with time beyond regulation calculations robotically, based mostly on timesheets and native laws






• Obtain alerts on upcoming minimal wage and compliance adjustments






• Keep on prime of hours labored with cell time clocks and detailed timesheets






• Really feel assured your timesheet-based payroll calculations are right and compliant 






• Get personalised recommendation from HR professionals 

Bear in mind, investing in your workers via compliant wages isn’t just a authorized obligation — it’s a key a part of constructing a profitable enterprise.

By letting Homebase deal with the minimal wage paperwork, you possibly can give attention to rising your organization and workforce.