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Washington Minimal Wage: a Information For Small Companies


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

Staying on high of minimal wage legislation is essential. However common modifications at each the state and native ranges make it onerous 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 all the pieces it’s worthwhile to know to remain updated with the present statewide and native minimal wage and prepare for upcoming modifications to base pay charges. Then, we’ll present you the way 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 increased base pay for staff. 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 have to know. 

Present state minimal wage in Washington 

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

Additional time kicks in after 40 hours of labor in a set 7-day workweek. So in accordance with Washington labor legal guidelines, most workers will must be paid 1.5 occasions their regular hourly wage for any extra time hours, that means extra time hours will value 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 at the very least $2.72 per hour towards the worker’s medical advantages or the worker doesn’t earn at the very least $2.72 per hour in suggestions

$17.25  for small employers (500 or fewer workers) in the event that they do pay at the very least $2.72  per hour towards the worker’s medical advantages or the worker earns at the very least $2.72 per hour in suggestions

SeaTac Hospitality and Transportation Trade : $19.71/hr.

Tukwila:  $20.29/hr

Exceptions to the minimal wage in Washington state

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

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

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

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

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

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

It’s necessary to notice that usually, there is no such thing as a exception to the minimal wage for tipped staff in Washington, and no tip credit score out there for employers. The Division of Labor and Industries mandates that servers, bar workers, hairdressers, and different tipped professions should obtain the usual hourly minimal wage, along with any gratuities or service expenses they’re entitled to. 

Native minimal wage charges 

On high of statewide laws, some cities in Washington mandate increased minimums primarily based on their elevated value 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. 

Giant employers with over 500 staff should pay at the very least $19.97.

Proper now, in Seattle, small employers will pay a minimal wage of $17.25  supplied additionally they pay at the very least  $2.72 per hour towards medical advantages or the employee earns at the very least $2.72 per hour in suggestions. Nevertheless, by 2025, employers will now not be capable of depend suggestions or medical profit contributions as a part of the minimal wage. 

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

SeaTac minimal wage 2024

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

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

How small companies can navigate minimal wage modifications 

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 appropriately and pretty whereas offsetting the impression of rising labor prices.

1. Keep updated with minimal wage laws

Repeatedly verify the official Washington Division of Labor and Industries webpage to ensure you’re knowledgeable on upcoming modifications to minimal wage charges. It’s also possible to subscribe to their e-newsletter to ensure you don’t miss something. 

If there are proposed modifications to wage laws that haven’t gone via but, you could 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. 

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

2. Analyze the true value of wage hikes

Calculate the full payroll prices throughout all affected workers members to grasp precisely what minimal wage modifications will value your corporation. Add the figures into your funds for the yr to see if there’s a shortfall you’ll have to make up in different methods. 

3. Audit processes to chop prices 

Look to chop down on spending the place potential to cope with increased pay charges. You might need to get strategic about your worker scheduling, ensuring you’re not rostering in pointless crew members throughout off-peak occasions.  

Time monitoring is one other nice approach to keep on high of labor prices. Time clock instruments allow you to reduce down on wage theft and determine time sinks that make your corporation much less environment friendly. Homebase time clock and scheduling options may even provide you with a warning when your individuals are approaching extra time limits, so you’ll be able to ensure you’re not paying excessive extra time prices until they’re actually crucial. 

4. Show office posters

Ensure you’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 at the moment 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 should pay the federal minimal wage charge, although — the Washington or native metropolis minimal wage charge nonetheless applies. 

5. Doc all the pieces

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

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

Homebase helps small enterprise compliance

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

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

With Homebase, you’ll be able to: 

  • Routinely apply the fitting wage guidelines for every location



  • Deal with extra time calculations routinely, primarily based on timesheets and native laws



  • Obtain alerts on upcoming minimal wage and compliance modifications



  • Keep on high of hours labored with cellular time clocks and detailed timesheets



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



  • Get customized recommendation from HR execs 

Keep 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’ll be able to deal with rising your organization and crew.

 

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