Paying individuals lower than present minimal wage charges can set your small business up for fines, lawsuits, and a foul popularity — even when it’s an trustworthy mistake.
Staying on prime of minimal wage regulation is essential. However common adjustments 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 complicated minimal wage legal guidelines for small enterprise homeowners. We’ll clarify all the pieces it’s essential know to remain updated with the present statewide and native minimal wage and prepare for upcoming adjustments 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.
Get your workforce in sync with our easy-to-use, all-in-one worker app.
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 larger base pay for staff. Meaning there’s additional stress on companies to remain updated, prioritize compliance, and finances for elevated labor prices.
Let’s break down precisely what small enterprise homeowners must know.
Present state minimal wage in Washington
The statewide minimal wage in Washington is $16.28 per hour as of January 1, 2024.
Extra time kicks in after 40 hours of labor in a hard and fast 7-day workweek. So in accordance with Washington labor legal guidelines, most staff will should be paid 1.5 instances their regular hourly wage for any additional time hours, that means additional 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 not less than $2.72 per hour towards the worker’s medical advantages or the worker doesn’t earn not less than $2.72 per hour in ideas
$17.25 for small employers (500 or fewer staff) in the event that they do pay not less than $2.72 per hour towards the worker’s medical advantages or the worker earns not less than $2.72 per hour in ideas
SeaTac Hospitality and Transportation Business : $19.71/hr.
Exceptions to the minimal wage in Washington state
Although the bottom fee applies to most staff throughout the state, there are some exceptions.
For instance, 14 or 15-year-old staff may be paid 85% of the minimal wage, which works out at $13.84 per hour for 2024.
Companies may also apply for a sub-minimum wage certificates permitting them to pay lower than minimal wage in sure circumstances. These embody:
- On-the-job trainees, with the right certification, may be paid 85% of the minimal wage (that’s $13.84 per hour, according to present wage charges).
- In sure instances, scholar staff and learners, with a certificates from their academic establishment, may 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 essential to notice that normally, there isn’t 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 prices they’re entitled to.
Native minimal wage charges
On prime of statewide rules, some cities in Washington mandate larger minimums based mostly 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 not less than $19.97.
Proper now, in Seattle, small employers pays a minimal wage of $17.25 supplied in addition they pay not less than $2.72 per hour towards medical advantages or the employee earns not less than $2.72 per hour in ideas. Nonetheless, by 2025, employers will not be capable of rely ideas or medical profit contributions as a part of the minimal wage.
Beneath Seattle’s Minimal Wage Ordinance, town adjusts its wage flooring on January 1st yearly based mostly on inflation.
SeaTac minimal wage 2024
Hospitality and transportation employers ought to take be aware that this minimal will increase every year according to the Client Worth Index (CPI) of the yr earlier than.
How small companies can navigate minimal wage adjustments
Shifting minimal wage legal guidelines can create challenges for small enterprise compliance and profitability. Use these 5 tricks to be sure to’re paying your individuals accurately and pretty whereas offsetting the impression of rising labor prices.
1. Keep updated with minimal wage rules
Commonly verify the official Washington Division of Labor and Industries webpage to be sure to’re knowledgeable on upcoming adjustments to minimal wage charges. You may also subscribe to their e-newsletter to be sure to don’t miss something.
If there are proposed adjustments to wage laws that haven’t gone by but, it’s possible you’ll even be capable of form the ultimate regulation 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 adjustments. Native legal guidelines mandate the best wages in Washington, so it’s essential to be sure to’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 know precisely what minimal wage adjustments will value your small business. Add the figures into your finances for the yr to see if there’s a shortfall you’ll must make up in different methods.
3. Audit processes to chop prices
Look to chop down on spending the place doable to cope with larger pay charges. You could wish to get strategic about your worker scheduling, ensuring you’re not rostering in pointless workforce members throughout off-peak instances.
Time monitoring is one other nice solution to keep on prime of labor prices. Time clock instruments allow you to minimize down on wage theft and determine time sinks that make your small business much less environment friendly. Homebase time clock and scheduling options may even provide you with a warning when your individuals are approaching additional time limits, so you may be sure to’re not paying excessive additional time prices except they’re actually crucial.
4. Show office posters
Ensure you’re absolutely compliant with Washington labor legal guidelines by displaying the mandated posters prominently in your office informing staff of their rights.
Washington employers aren’t at present 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 fee, although — the Washington or native metropolis minimal wage fee nonetheless applies.
5. Doc all the pieces
Rigorously doc all compliance-related data, together with hours labored, pay fee, additional time, breaks, and worker standing modifications. Thorough paper trails defend companies.
Homebase helps small enterprise compliance
Attempting to manually adapt to altering minimal wage hikes takes priceless time from small enterprise homeowners, particularly if a number of areas are concerned.
Homebase gives easy-to-use automated options and customised help, which streamlines the method and protects you from blind spots.
With Homebase, you may:
- Robotically apply the proper wage guidelines for every location
- Deal with additional time calculations mechanically, based mostly on timesheets and native rules
- Obtain alerts on upcoming minimal wage and compliance adjustments
- Keep on prime of hours labored with cellular time clocks and detailed timesheets
- Really feel assured your timesheet-based payroll calculations are right and compliant
- Get customized recommendation from HR professionals
Keep in mind, investing in your staff by compliant wages is not only a authorized obligation — it’s a key a part of constructing a profitable enterprise.
By letting Homebase deal with the minimal wage paperwork, you may deal with rising your organization and workforce.
Get your workforce in sync with our easy-to-use, all-in-one worker app.