How is Compensation Changing in Washington State for 2023?

Inflation and wage growth have far exceeded any period in recent memory, but Washington’s new compensation laws are newsworthy on their own. As the end of the year approaches, it’s important for Washington State employers to know about laws changing on January 1, 2023.

​The Seal of the State of Washington overlaid on a map of Washington

​Find out what you need to know about how Washington compensation laws are changing next year:

Minimum Wage
Seattle’s 2023 minimum wage will be $18.69. That is an increase of $1.42, or 8.22%, from 2022. The City of SeaTac sets the minimum wage for hospitality and transportation employees based on the CPI-W. With a year-over-year increase of 8.66%, SeaTac will have the highest minimum wage in the United States at $19.06. Washington State’s minimum wage is also based on the CPI-W and will increase by 8.66%. The $1.25 increase will raise the minimum wage in Washington State to $15.74.

Exempt Salary Threshold
The Washington State exempt salary threshold is determined by multiplying the state minimum wage by a factor, then annualizing the pay to 2080 hours. The factor is based on the employer’s number of non-exempt employees.

From 1 to 50 non-exempt employees, the factor is 1.75 times the minimum wage. The exempt threshold is $57,293.60 annually (1.75 x $15.74 x 2080).

For more than 50 non-exempt employees, the factor is 2 times the minimum wage. The exempt threshold is $65,478.40 annually (2 x $15.74 x 2080).

Equal Pay and Opportunity Act
An amendment to the Washington Equal Pay and Opportunity Act dramatically changes job posting requirements. This law requires all employers with 15 or more employees to disclose the wage scale or salary range along with a general description of all benefits and other compensation in every job posting. Specifically, the law defines the term “posting” as:

Any solicitation intended to recruit job applicants for a specific available position, including recruitment done directly by an employer or indirectly through a third party, and includes any postings done electronically, or with a printed hard copy, that includes qualifications for desired applicants.

As of initial publication, the final policy has not been published. What we do know is that the job posting must include the full salary range for that job, from minimum to maximum, along with a description of the benefits offered. I’m sure we will all learn more about this law as we move into 2023.

About the Author
Nancy Kasmar – Principal at Compensation Connections, LLC

Nancy is a Principal of Compensation Connections, with over 25 years of management experience in addition to 15 years in human resources and total rewards. She received her Master of Science degree from the University of California, San Francisco, and a Certificate in Management from the University of California, San Diego. Nancy holds a Senior Professional in Human Resources (SPHR) designation with an additional certification as a Certified Compensation Professional (CCP). She is also certified as a SHRM-SCP.
 
Nancy has worked with hundreds of organizations throughout North America as a compensation consultant. In addition to her professional and volunteer responsibilities, Nancy speaks regionally and nationally on topics ranging from compensation and benefits to mentorship and diversity.

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