WA State threshold for OT exempt employees will rise by 2.8% in 2026
Last updated: October 8, 2025
On September 30, 2025 the Washington State Department of Labor and Industries announced the new state minimum wage effective January 1, 2026: $17.13 per hour.
The Washington state overtime threshold for FLSA Exempt positions is set by state rule at 2.25 times the state minimum wage and will be $1,541.70 per week as of January 1, 2026. Due to the monthly base pay model at the UW requiring rounding up to a whole dollar amount, the UW’s monthly and annualized thresholds are slightly higher than the state’s weekly threshold as shown in the table below:
L&I Salary Threshold effective Jan 1, 2026
| Weekly | $1,541.70 |
| Monthly | $6,681 |
| Annual | $80,172 |
Since the state threshold is higher than the federal, employers in Washington State must follow the higher state threshold. To be FLSA Exempt, positions must also meet one of the “duties tests”. The salary threshold is not prorated by FTE and applies regardless of whether a position is part-time or full-time. For example, an employee with a full-time salary of $120,000 who works 50% (half time) would be FLSA Non-Exempt because their actual, half-time salary would be $60,000, which is less than the new threshold.
Employees with a combination of FTE and salary that falls below $6,681 per month will be converted to an FLSA Non-Exempt job code no later than the last week of December 2025. Starting Monday, December 29, 2025, (or December 22, 2025 for medical center employees) they will need to track the hours that they work following the established time tracking procedure in their department. They will be paid for all hours worked, and time and a half (or compensatory time at time and a half) for all hours worked over 40 in a workweek.
Employees whose primary duty is teaching, instructing, or lecturing to impart knowledge are not eligible for overtime and this change does not impact them.
If you have any questions regarding this change, please see the Minimum Wage Impact FAQs or discuss them with your departmental HR. For additional information, please see the UWHR webpage: FLSA and WMWA overtime eligibility and exemption.