Effective January 1, 2026, both the Washington State minimum wage and the Washington State Labor & Industries (L&I) overtime exemption salary threshold will increase.

  • Minimum wage is increasing to $17.13/hour
  • Employees must earn more than $80,168.80 annually ($6,680.70 monthly) to be exempt from overtime, regardless of duties and responsibilities

The minimum wage increase will impact student and hourly employees, and those with a pay rate below the minimum wage will be increased automatically. Departments do not need to take action to apply the minimum wage increase.

The overtime exemption amount is determined by L&I and is based upon a multiplier of the WA state minimum wage and inflation.

Both changes are processed centrally in Workday between January 5 and January 12, with an effective date of January 1, 2026. The minimum wage increase will be paid in the January 25, 2026, paycheck.

Helpful resources for student and hourly employees

Information on how the minimum wage is calculated and the higher minimum wage rates for Seattle, SeaTac, Renton, and Tukwila can be found on the Minimum Wage Information page on the HRS website.

Student Employment Classification/Compensation plans and links to university policies are available on the Classification and Compensation page on the HRS website.

For employees working in Seattle and other identified cities, the local minimum wage rate applies as long as it remains higher than the state minimum. Departments with employees physically working in these cities must ensure they are paid in accordance with the city minimum wage ordinance.

How will I know if I’m eligible for overtime after January 1?

Employees whose salary will now be within the L&I threshold will receive a letter from Human Resource Services notifying them they are eligible for overtime and must enter and correct their time worked in Workday.

I’m an employee who is now eligible for overtime, what do I need to know?

For a list of questions and answers, including what is FLSA, are AP staff exempt from overtime, and links to additional state resources, review the Overtime Eligibility Change FAQs page on the HRS website.

For step-by-step instructions on time tracking in Workday, go to the Enter and Correct Time reference guide.

I’m a departmental HR professional, what resources and timelines do I need to be aware of?

HR Partners, Compensation Partners, and Area Finance Officers are encouraged to review the January 2026 HCM Mass Action Timelines and Options guide which lists the select Workday staffing actions that are placed on hold during the central processing of the minimum wage and overtime threshold increases.

The guide details the impacted processes, employee types, dates, and the actions departmental HR professionals should take prior to and after the blackout dates.

To learn more about the three HCM Blackout Dates that happen during the calendar year and how they are handled in Workday, go to the Staffing and Compensation Blackout Information guide in the Workday Knowledge Base.

Departments do not need to take action to apply the minimum wage increase, but are responsible for monitoring employee work location to ensure the pay rate is correct and make necessary adjustments. Review the Assign Work Location and Assign Alternate Work Address reference guide for instructions on how to update an employee’s work location.

What if I have other questions?

  • Eligibility and processing questions may be directed to Human Resource Services at hrs@wsu.edu or 509-335-4521.
  • Workday support and related time entry questions can be submitted via the Workday Service Desk.

Who this page is for

  • Overtime eligible and hourly employees
  • HR Partners, Compensation Partners, AFOs