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2020 Minimum Wage Increases

Updated: Mar 10, 2020

The 2020 minimum wage for large employers (501 or more employees) is $16.39/hour, effective January 1, 2020. Large employers are defined as those who employ more than 500 people worldwide. This rule affects all large employers starting in 2019, even those that contribute toward individual medical benefits.

Small employers, those who employ 500 or fewer people, must pay at least $15.75 an hour beginning Jan. 1, 2020. If the small employer contributes at least $2.25 per hour toward an employee’s medical benefits and/or the employee earns tips, that employer will pay a $13.50 minimum wage in 2020. In 2021, these employers will have an additional $1.50 increase to $15 per hour.

Seattle’s Minimum Wage Ordinance determines that the wage paid by large employers increases annually to reflect the rate of inflation measured by the Seattle-Tacoma-Bremerton Area Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the 12-month period ending August 2018. By law, small employers must also pay workers a higher minimum wage.

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