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Upcoming 2026 Washington Workplace Reforms: Enhanced Salaries and New Tower Crane Regulations

As we step into 2026, Washington workplaces are experiencing a series of significant changes, including increased worker pay and updated workplace safety regulations.

The Washington State Department of Labor & Industries (L&I) has recalibrated wage standards, including the minimum wage, based on the federal Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers.

Here are the key changes:

State Minimum Wage Increase

Washington’s minimum wage has risen to $17.13 per hour, marking a 2.8% increase from the previous year’s rate of $16.66. Employers are permitted to pay 85% of the minimum wage, which amounts to $14.56 per hour, for 14- and 15-year-old workers.

Additionally, local governments have the authority to establish minimum wages that exceed the state’s baseline. Cities such as Seattle, SeaTac, Tukwila, Renton, Bellingham, Everett, Burien, and unincorporated King County have set higher minimum wage rates.

Tower Crane Safety Requirements

New regulations require prime contractors to obtain a permit and adhere to manufacturers’ guidelines for the operation, assembly, disassembly, or reconfiguration of tower cranes. L&I will evaluate a prime contractor’s safety and health violation history during the permit application process.

For more details on the new tower crane requirements, visit L&I’s website.

Overtime-Exempt Workers

Employees who are paid on a salary basis and perform executive, administrative, or professional duties may be exempt from overtime pay, provided they meet certain salary thresholds set by L&I. For 2026, the minimum salary for overtime-exempt workers is now 2.25 times the minimum wage, which translates to at least $1,541.70 per week, or $80,168.40 annually.

For exempt computer professionals paid hourly, the rate is set at 3.5 times the minimum wage, equating to $59.96 per hour.

Pay for Rideshare Drivers

Effective January 1, the minimum pay for rideshare drivers has increased. In Seattle, drivers will earn 70 cents per passenger platform minute and $1.63 per passenger platform mile, or a minimum of $6.12, whichever is greater. For trips outside Seattle, the rates have risen to 40 cents per passenger platform minute and $1.38 per passenger platform mile, with a minimum of $3.55.

Non-Compete Clauses

L&I is tasked with determining the minimum annual salary required for non-compete clauses or employee contracts to be enforceable. In 2026, the threshold for employees is set at $126,858.83, while for independent contractors, it is $317,147.09. Any non-compete clause or employee contract for workers earning below these amounts will not be enforceable.

Topics
Commercial Lines
Business Insurance
Washington

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As we step into 2026, Washington workplaces are experiencing a series of significant changes, including increased worker pay and updated workplace safety regulations.

The Washington State Department of Labor & Industries (L&I) has recalibrated wage standards, including the minimum wage, based on the federal Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers.

Here are the key changes:

State Minimum Wage Increase

Washington’s minimum wage has risen to $17.13 per hour, marking a 2.8% increase from the previous year’s rate of $16.66. Employers are permitted to pay 85% of the minimum wage, which amounts to $14.56 per hour, for 14- and 15-year-old workers.

Additionally, local governments have the authority to establish minimum wages that exceed the state’s baseline. Cities such as Seattle, SeaTac, Tukwila, Renton, Bellingham, Everett, Burien, and unincorporated King County have set higher minimum wage rates.

Tower Crane Safety Requirements

New regulations require prime contractors to obtain a permit and adhere to manufacturers’ guidelines for the operation, assembly, disassembly, or reconfiguration of tower cranes. L&I will evaluate a prime contractor’s safety and health violation history during the permit application process.

For more details on the new tower crane requirements, visit L&I’s website.

Overtime-Exempt Workers

Employees who are paid on a salary basis and perform executive, administrative, or professional duties may be exempt from overtime pay, provided they meet certain salary thresholds set by L&I. For 2026, the minimum salary for overtime-exempt workers is now 2.25 times the minimum wage, which translates to at least $1,541.70 per week, or $80,168.40 annually.

For exempt computer professionals paid hourly, the rate is set at 3.5 times the minimum wage, equating to $59.96 per hour.

Pay for Rideshare Drivers

Effective January 1, the minimum pay for rideshare drivers has increased. In Seattle, drivers will earn 70 cents per passenger platform minute and $1.63 per passenger platform mile, or a minimum of $6.12, whichever is greater. For trips outside Seattle, the rates have risen to 40 cents per passenger platform minute and $1.38 per passenger platform mile, with a minimum of $3.55.

Non-Compete Clauses

L&I is tasked with determining the minimum annual salary required for non-compete clauses or employee contracts to be enforceable. In 2026, the threshold for employees is set at $126,858.83, while for independent contractors, it is $317,147.09. Any non-compete clause or employee contract for workers earning below these amounts will not be enforceable.

Topics
Commercial Lines
Business Insurance
Washington

Interested in Business Insurance?

Get automatic alerts for this topic.