New changes to Washington's overtime rules beginning July 2020

The Washington State Department of Labor & Industries (L&I) recently announced significant revisions to the state's overtime rules for the first time in 40 years. The new rules will go into effect beginning July 1, 2020, and will be phased in through 2028. They increase the salary threshold and update the job duties tests used to determine whether an employee is required to be paid overtime.

Washington's new overtime rules

The new rules announced by L&I will result in tens of thousands of workers becoming entitled to overtime compensation by greatly increasing the minimum salary threshold required for exempt status. Specifically, they use a formula based on Washington's minimum wage to determine the minimum salary a worker must receive to be exempt from the state's overtime requirements. The changes will begin July 1, 2020, and will be fully implemented by January 2028. They will eventually expand overtime entitlement to an estimated 259,000 workers when fully implemented in 2028.

To be exempt from overtime, an employee generally must perform certain defined job duties and must be paid a fixed salary that meets or exceeds the salary threshold. Under current federal guidelines, the salary threshold is $455 a week, while Washington's salary threshold is only $250 a week.

Salary threshold