US labor policies are based on what Washington sets, right after the Department of Labor and Industries (L&I) update. It recently announced that the US minimum wage will increase to $17.13 per hour, which has been calculated by the Consumer Price Index (CPI-W). This increase is estimated due to inflation. In fact, cities such as Seattle, SeaTac, Tukwila, Renton, Bellingham, Everett, Burien, and King County have even higher rates. Uber and Lyft drivers will also see positive effects on their wages. This measure affects workers exempt from overtime and their respective non-competition clauses and base salary. Read on to learn more.
Settings for overtime-exempt employees
The minimum wage growth will also effect on overtime-exempt workers, like executive, administrative, professional and computer employees. L&I states that beginning in 2026, all employers will be have to pay at least 2.25 times the minimum wage to these employees.
This signifies that an exempt employee hast to receive a minimum salary of $1,541.70 per week, the same to $80,168.40 per year. For computer professionals, the minimum hourly rate will be $59.96, in spite of the size of the company. These modifications are part of an eight-year phased implementation plan, which will be developed until 2028, when the threshold will reach 2.5 times the minimum wage.
Modifications for young workers and app drivers
Workers aged 14 to 15 will be able to earn 85% of the state minimum wage, which means $14.56 per hour in 2026.
At the same time, drivers of app-based transportation vehicles (such as Uber or Lyft) will also see a growth in their income. In 2026, trips within Seattle will pay $0.70 per minute and $1.63 per mile, or a minimum of $6.12 per trip, whichever is better. Outside Seattle, fares will be $0.40 per minute and $1.38 per mile, or a minimum of $3.55.
New thresholds for non-compete clauses
The L&I also updated the minimum salary thresholds for non-compete contracts. In 2026, such a contract will only be enforceable if the employee earns at least $126,858.83 annually. For independent contractors, the limit will be $317,147.09.
Labor protection and complaints
The minimum wage in Washington state will grow by 2.8% from January 1, 2026, to $17.13 per hour, the Department of Labor and Industries (L&I) has presented. The update is stimated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a federal indicator that controls the cost of living.
With this growth, Washington keeps the highest minimum wage in the United States, far exceeding the national average and the federal minimum wage, which has been the same stagnant at $7.25 per hour since 2009. More over, many cities in the state, like Seattle, SeaTac, Tukwila, Renton, Bellingham, Everett, Burien and included King County, have even higher local rates.
Seattle waffle shop owner shuts down business
The owner of a popular waffle shop in West Seattle said she had no choice but to shut down her business after the city’s new minimum wage law went into effect on New Year’s Day — hiking hourly pay to $20.76.
Bebop Waffle Shop, which was founded by a former New York City resident more than a decade ago, closed its doors for good on Monday. Luckenbach, who founded Bebop more than 10 years ago after relocating from New York to the Emerald City, said that her business had already been suffering from high inflation which caused the price of food to spike.
The waffle shop has also been hamstrung by lower foot traffic in the city — a result of many people working from home. The minimum wage increase was the last straw, she said.
Luckenbach, who named the cafe after her late dachshund, said that while in theory she supports workers earning a higher minimum wage, in practice she has been unable to keep up with the change.