Quick answer: For 2027, Washington’s minimum wage rises to $17.73 an hour (up 3.5%). Employers with 51 or more staff face an overtime-exempt salary floor of $92,196, up 15%. Add the WA Cares premium of 0.58% of gross wages and the proposed 4.9% average workers’ comp increase to your payroll budget.
Last updated: November 11, 2026
2027 Washington payroll changes
- Minimum wage: $17.73 per hour, up 3.5% from 2026.
- Overtime-exempt salary floor (51+ employees): $92,196, up 15%.
- WA Cares premium: 0.58% of each employee’s gross wages.
- Workers’ comp: The Department of Labor & Industries proposed an average 4.9% increase for 2027, about $75 per full-time worker. Final rates are expected November 30, 2026.
How to budget for it
- List every hourly employee earning under $17.73 and estimate the raise needed.
- Check salaried staff against the $92,196 floor if you have 51 or more employees.
- Apply 0.58% to total gross wages for the WA Cares premium.
- Add the workers’ comp increase to your 2027 insurance line, using the final rate once published.
Frequently asked questions
When will final 2027 workers’ comp rates be set?
The proposed rates were scheduled for final approval around November 30, 2026. Confirm the final figures on the Department of Labor & Industries site.
Do these changes apply to every employer?
The overtime floor applies by employer size and role. Check the Washington rules for exempt status before changing pay.
Related services
For help forecasting payroll costs, see our payroll processing and management services.

