2026-2027 Compliance Updates for Washington State

Washington State has always been at the forefront of employee rights and protections, so it's no surprise that more compliance updates are coming in 2026. As the year comes to a close, now is the perfect time for employers to review the upcoming changes and begin preparing to maintain compliance by adjusting appropriate policies, practices, etc.

Here is everything you need to know regarding Washington State Labor Law Updates that are coming in 2026.

Washington Labor Updates for 2026 Through 2027

Employers should be aware of the following updates to Washington State compliance requirements as we head into 2026:

• Minimum Wage
• Overtime Salary Exemptions
• Non-Compete Laws
• Protections for Immigrant Workers
• Ban on Microchipping Employees
• Paid Family and Medical Leave (PFML)
• Washington Cares Fund
• Washington Healthy Starts Act
• Background Check & Prescreening Laws

Washington Minimum Wage Update

Effective January 1st, 2026, Washington State Minimum wage is $17.13 per hour. This is a 2.8% increase over the previous year. 

It's important to note that the following localities have separate, higher minimum wage rates, all of which will increase in 2026: 

• Seattle - $21.30
• SeaTac - $20.74
• Tukwila - $21.65
• Renton - $20.57 to  $21.57
• Bellingham - $19.13
• Everett - $18.77 to $20.77
• Burien - $20.63 to $21.63
• Unincorporated King County - $18.32 to $20.82

For more information on these local minimum wage rates and who they apply to, check out this Washington Minimum Wage Guide.

Washington State also has specific minimum wage laws regarding youth workers and rideshare drivers. 

Youth workers ages 14 and 15 may be paid at a minimum wage equal to 85% of the current state minimum wage. For 2026, this will be $14.56 per hour. 

Rideshare companies in Washington are also subject to specific compensation requirements for their drivers. Also effective January 1st,  2026, rideshare drivers must earn at least:

• 70 cents per passenger platform minute and $1.63 per passenger platform mile, or $6.12, whichever is greater, for trips within Seattle.
• 40 cents per passenger platform minute and $1.38 per passenger platform mile, or $3.55, whichever is greater, for trips outside of Seattle.

Overtime Salary Exemptions

Washington State has higher requirements when it comes to employees being exempt from overtime compensation. 

For employees classified as executive, administrative, and professional workers under the Fair Labor Standards Act (FLSA), the Washington State Overtime Exempt Salary Threshold is 2.25 times the minimum wage, effective January 1st, 2026 ($1,541.70 a week / $80,168.40 a year).

For employees classified as computer professionals under the FLSA,  the Washington State Overtime Exempt Salary Threshold is 3.5 times the minimum wage, effective January 1st, 2026 ($59.96 per hour).

Non-Compete Laws

Washington State's Non-Compete Law finally went into effect back in 2022. As part of the law, employees must make a certain amount of money before an employer is allowed to have them sign a non-compete agreement. 

For 2026, the thresholds are as follows: 

• Employees: $126,858.83
• Independent Contractors: $317,147.09

It’s important to note that compensation is annualized to determine whether or not a worker’s income is over the threshold. For example, if an employee doesn’t earn $123,394.17 over the course of a year because they only worked for 6 months, but would have made $124,000 had they worked the whole year, they are considered over the threshold.

2027 Ban on Washington on Non-Compete Agreements

Effective June 30th 2027, noncompete agreements in Washington State will become void and unenforceable for all employers, including state and local governments. 

This includes agreements that:

• Prohibit an employee or independent contractor from engaging in a lawful profession, trade, or business; or

• Threaten or require an individual return or repay a right, benefit, or compensation as a consequence of the individual engaging in a lawful profession, trade, or business.

Employers are required to make a reasonable effort to notify current and former employees of this update by October 1st, 2027.

Immigrant Worker Protection Act

The Immigration Worker Protection Act establishes more defined employer rights and responsibilities when engaging with federal immigration enforcement agencies that undertake inspections of I-9 forms.

Specifically, effective June 11th, 2026, employers must notify employees and their union representative within five business days of receiving an I-9 Inspection Notice. Employers must also provide them with a copy of the results of the inspection within five days of receiving them.

Ban on Microchipping Employees

While seemingly a joke, it's important to note that Washington State did, in fact, pass a law banning employers from requiring, requesting, or coercing workers to have subdermal microchips implanted, effective June 11th, 2026.

Paid Family and Medical Leave (PFML)

Effective July 1st, 2026, there will be several changes to Washington's PFML program.

These updates include: 

• How leave may be used
• Job protection eligibility
• Job protection requirement coverage

To learn more about the specific changes, check out this guide to the Updates for Washington Paid Family and Medical Leave.

Washington Cares Fund

After initially being established in 2019, as of July 2026, eligible employees will be able to start accessing the following benefits from the Washington Cares Fund: 

• Professional personal care in your home, an assisted living facility, an adult family home, or a nursing home
• Healthcare equipment such as hearing devices and medication reminder devices
• Home safety evaluations
• Training and support for family members that are also care providers (paid or unpaid)
• Home-delivered meals
• Care transition coordination
• Memory care
• Environmental modifications like wheelchair ramps
• Personal emergency response system
• Respite for family caregivers
• Transportation
• Dementia supports
• Education and consultation

Washington Healthy Starts Act

Effective January 1st, 2027, the Washington Healthy Starts Act will expand to require all employers to comply with pregnancy and postpartum workplace accommodation requirements, regardless of size.

Background Check & Prescreening Laws

The Washington Fair Chance Act was recently amended as well, altering requirements around hiring and onboarding. 

Specifically, effective July 1st, 2026: 

• An employer may not obtain information about an applicant's criminal record until after the employer initially determines that the applicant is otherwise qualified for the position, and they have made an offer of employment conditioned on obtaining the applicant's criminal record.
• An employer may not implement any policy or practice that automatically or categorically excludes individuals with a criminal record from any employment position. 
• An employer may not reject an applicant for failure to disclose a criminal record prior to receiving a conditional offer of employment.
  

Most importantly, as of July 1st, 2026, these amendments apply to employers with 15 or more employees. 

Effective January 1st, 2027, the law will expand to cover employers with fewer than 15 employees.

Frequently Asked Questions

What Washington State labor laws have updates in 2026?

Several Washington State labor and compliance requirements have updates in 2026. These include minimum wage, overtime salary exemptions, non-compete laws, protections for immigrant workers, the ban on employee microchipping, Paid Family and Medical Leave (PFML), the Washington Cares Fund, and background check and prescreening laws. The Washington Healthy Starts Act also has changes taking effect in 2027.

What Washington State labor laws have updates in 2027?

In 2027, Washington employers should be aware of changes to non-compete agreements, the Washington Healthy Starts Act, and the Washington Fair Chance Act. Beginning June 30, 2027, non-compete agreements will become void and unenforceable for all Washington employers. On January 1, 2027, the Washington Healthy Starts Act will expand pregnancy and postpartum accommodation requirements to all employers, regardless of size. The Fair Chance Act amendments will also expand to employers with fewer than 15 employees on January 1, 2027.

How can I get updates on Washington State labor laws?

Employers can stay informed by regularly reviewing Washington State labor and compliance requirements and preparing for upcoming changes in advance. Businesses struggling with compliance should also consider working with a Washington payroll company for assistance with preparing for new labor law and compliance requirements.

Get Help with Washington State Compliance

Businesses that are struggling with compliance may want to consider reaching out to a Washington Payroll company for assistance.

To learn more about how PayNW is helping countless businesses in Washington prepare for the new year and the compliance updates that come with it, contact us today.