Minimum Wage for 2020

We review the state-wide minimum wage as well as the cities with higher minimum wages such as Seattle and SeaTac.

 

Washington state minimum wage for 2020

The state-wide minimum wage takes the biggest overall jump, from $12.00 to $13.50. This 12.5% increase was approved by voters in 2016 as part of Initiative 1433. Future increases starting in 2021 will be based on the Consumer Price Index, which should make for smaller annual rises.

 

Tacoma minimum wage for 2020

After four years of setting its own minimum wage, Tacoma has been leapfrogged by the state-wide rate. So, Tacoma joins back up with the state in 2020 with the same minimum wage of $13.50.

 

Where minimum wage is higher in Washington state

Seattle and SeaTac are the two cities that continue to set minimum wages higher than the rest of the state for 2020.

 

SeaTac minimum wage for 2020

Transportation and hospitality workers in the City of SeaTac, including the airport, must earn at least $16.34 per hour in 2020.

 

Seattle minimum wages for 2020

Seattle has the most complex minimum wage laws for 2020.

Except, if your company has more than 500 employees, it’s not complex at all. Your minimum wage for 2020 is $16.39.

But, if you’re a small employer in Seattle (500 employees or less), you need to calculate the correct wage for each of your employees. The minimum wage in Seattle depends on whether you contribute to an employee’s health insurance and/or if an employee earns tips as part of their job.  The contribution threshold for employers is $2.25/hour toward medical benefits or if the employee earns $2.25/hour in tips.

  • Employee working for small employer (w/ healthcare benefit or tips) must earn $13.50 per hour.
  • Employee working for small employer (no healthcare benefits or tips) must earn $15.75 per hour.

 

 

Be sure to track each employee’s hours and wages properly, then keep those records on file. If there is an L&I claim, you might need this information in order to complete the wage calculation. If you need HR assistance, ask the HR Help Desk, available to all Approach clients.