The Definitive Guide to Washington State Overtime Regulations

Washington State’s overtime laws are straightforward but require attention to detail. Employers must know exactly when overtime applies, how to calculate it, and which employees are covered. Failing to follow the rules could lead to compliance violations and financial penalties.

The state has its own set of overtime regulations that go beyond federal Fair Labor Standards Act (FLSA) requirements. While some guidelines overlap, Washington includes specific provisions, such as phased-in overtime protections for agricultural workers and unique rules for certain industries. Employers who manage teams in this state need to understand these differences clearly.

The Washington State Department of Labor & Industries serves as the primary resource for overtime regulations. The agency provides detailed guidance on calculating pay, filing complaints, and ensuring compliance with state law.

Washington Overtime Overview

Employees in Washington State must receive overtime pay when they work more than 40 hours in a seven-day workweek. Employers are required to pay time and a half based on an employee's regular hourly rate for every hour worked over 40. These rules apply regardless of the employer's size or industry, offering broad protections for workers across the state.

Washington overtime regulations differ in key areas from the FLSA. For instance, while both require overtime pay after 40 hours in a week, Washington does not mandate overtime for shifts exceeding eight hours in a single day, except for specific public works projects. Additionally, agricultural workers in Washington gained full overtime protections as of January 1, 2024, following a multi-year phase-in process, a significant departure from federal exemptions that exclude many agricultural employees.

Workweek Definition and Daily Hours

In Washington, employers define the workweek as a fixed, seven-day period that repeats consistently. The start of the workweek can begin on any day and at any time, such as 8:00 a.m. on Tuesday or midnight on Saturday. However, once established, the schedule must remain the same unless permanently changed for business needs.

Employees do not automatically qualify for overtime based on an eight-hour workday. Washington law focuses on total hours worked in a seven-day period rather than daily thresholds. For example, an employee could work four 10-hour shifts in a week without triggering overtime, as long as the total hours remain at or below 40. Exceptions to this rule apply to specific industries, like public works projects, where daily thresholds may apply.

Overtime applies only when an employee works more than 40 hours in the defined workweek. For instance, if an employee works six eight-hour shifts in one week, they would earn overtime for the additional eight hours beyond 40. Employers must calculate overtime pay using the employee's regular hourly rate, multiplied by 1.5. Keeping accurate records of hours worked is non-negotiable to meet compliance requirements and avoid payroll mistakes.

Overtime Eligibility

Washington overtime laws apply to many workers, including those paid hourly, on commission, or by piece rate. These employees must receive overtime pay once they exceed 40 hours in a defined workweek. The overtime rate is set at time and a half based on the worker's regular hourly earnings. Employers are legally required to comply, no matter the industry or company size.

Not all salaried employees are exempt from overtime pay. To be exempt vs non-exempt, they must meet specific requirements under the executive, administrative, or professional categories. These tests look at the employee's job duties, level of responsibility, and salary threshold. If a salaried employee doesn't meet all criteria, they must be paid overtime when working more than 40 hours in a week.

Agreements that waive overtime rights are not valid under Washington law. Employees cannot sign away their entitlement to overtime pay, nor can employers require them to do so. If Washington law is ignored, employers risk penalties, wage claims, and back pay for affected employees. Strict adherence to these rules is not optional—it's a legal obligation.

Agricultural Overtime Requirements

In 2021, Washington’s agricultural labor landscape shifted with the passage of ESSB 5172. This legislation extended overtime rights to agricultural employees, addressing a long-standing gap in worker protections. Historically excluded from overtime pay, agricultural workers are now entitled to receive compensation at 1.5 times their regular hourly rate for hours worked over specific thresholds.

The law introduced a gradual phase-in to give employers time to adapt. The phase-in schedule started in 2022:

2022: Overtime eligibility began at 55 hours per workweek.
2023: The threshold dropped to 48 hours per workweek.
2024: Full overtime protections aligned with the standard 40-hour workweek.

Dairy workers, however, were on a faster timeline. Since late 2020, they have been eligible for overtime pay after working more than 40 hours in a week. This earlier implementation recognized the demanding nature of dairy work and ensured fair compensation for extended hours.

Employers must now calculate overtime pay accurately for agricultural employees, including those paid by piece rate. This requires tracking hours worked each week and applying the correct overtime rate. By following the defined thresholds, businesses can remain compliant with Washington’s updated overtime laws and avoid penalties.

Common Exemptions

Washington's overtime laws include specific exemptions that employers must navigate carefully. Missteps in classification can lead to costly consequences, so understanding the criteria for exempt employees is non-negotiable. Each exemption depends on meeting strict requirements related to job duties, salary basis, and salary level. All three must align for an employee to qualify as exempt.

Executive, Administrative, and Professional Roles

Some employees in managerial or specialized roles qualify for exemptions under state law. Each category has clear expectations:

Executive Employees: Must oversee a department or the entire business and regularly supervise at least two full-time employees. Hiring and firing authority or significant influence on such decisions is also required.
Administrative Employees: Must focus on non-manual tasks directly tied to business operations or management. Decision-making on major matters is central to this exemption.
Professional Employees: Must work in a field requiring advanced knowledge, such as law, science, or engineering. This knowledge is typically obtained through formal education, not hands-on experience alone. Creative professionals, like artists or writers, may qualify if their work involves original or imaginative output.

Outside Sales Employees

Outside sales exemptions apply to employees who spend most of their time selling products or services away from the employer's primary office or facility. This exemption does not extend to employees who sell exclusively inside a storefront or office, even if the role generates commissions.

Certain IT Professionals

Highly technical roles in IT, such as software developers or systems analysts, can qualify for an exemption. However, these roles must involve advanced responsibilities like designing systems, programming, or similar technical expertise. Additionally, employees in these positions must meet the state's salary threshold to maintain exempt status.

Salary Thresholds

Washington has stricter salary thresholds compared to federal standards. In 2025, exempt employees must earn at least 2.5 times the state minimum wage for a 40-hour workweek. For example, if the minimum wage reaches $16.50 in 2025, the minimum annual salary for exempt employees would be $68,640. Falling below this threshold disqualifies an employee from exemption, even if their job duties align with exemption criteria.

Employer Responsibilities

Exemptions are not flexible or open to interpretation. Employers must carefully evaluate employee classifications to ensure compliance. This includes:

Reviewing job descriptions to confirm alignment with exemption guidelines.
Verifying that salaries meet or exceed the required threshold.
Regularly reassessing positions as roles and laws evolve.

When in doubt, err on the side of classifying employees as eligible for overtime. Misclassification can lead to financial penalties, back pay, and damaged employee relationships.

Calculating Overtime Pay

Accurately calculating overtime pay in Washington requires a clear understanding of what counts as an employee's "regular hourly rate." This rate is the benchmark for determining the time-and-a-half pay owed for hours worked beyond 40 in a single workweek. Employers need to follow straightforward steps to ensure they stay compliant and pay employees correctly.

Breaking Down the Regular Hourly Rate

The regular hourly rate includes most forms of compensation tied directly to an employee's work. To calculate it, employers must total all qualifying earnings for the week and divide by the total hours worked.

Earnings included in the regular rate:
Hourly wages
Salaries (converted to an hourly equivalent)
Commissions earned during the week
Piece-rate compensation
Non-discretionary bonuses, such as performance-based bonuses
Earnings excluded from the regular rate:
Discretionary bonuses, such as holiday gifts or one-time rewards
Tips and service charges paid to employees
Reimbursement for expenses like travel or uniforms
Paid time off, including vacation, sick leave, and holidays

For example, if an employee earns $900 in wages and $100 in commissions for 40 hours worked, their regular hourly rate would be $1,000 ÷ 40 hours, or $25 per hour.

Calculating Time-and-a-Half Pay

Once the regular hourly rate is determined, employers must apply the 1.5 multiplier to calculate overtime pay. The formula is straightforward:

Regular Hourly Rate × 1.5 × Overtime Hours Worked

For example, if an employee works 45 hours in a week with a regular hourly rate of $25:

Overtime hours: 5
Overtime rate: $25 × 1.5 = $37.50
Overtime pay: $37.50 × 5 = $187.50

The total weekly pay would include $1,000 for the first 40 hours plus $187.50 for the overtime, resulting in $1,187.50.

Weighted Averaging for Multiple Job Rates

When an employee works two or more roles with different hourly rates for the same employer, the overtime rate must reflect a weighted average of their total earnings. This ensures fairness and compliance with state law.

To calculate the weighted average:

Multiply the hours worked in each role by the respective pay rate to find weekly earnings for each job.
Add the total earnings from all roles.
Divide the total earnings by the total hours worked to find the regular hourly rate.

For example:

Job 1: 25 hours at $20/hour = $500
Job 2: 20 hours at $30/hour = $600
Total earnings: $500 + $600 = $1,100
Total hours: 25 + 20 = 45 hours
Weighted regular hourly rate: $1,100 ÷ 45 = $24.44

The overtime rate would then be $24.44 × 1.5 = $36.66. For five overtime hours, the total overtime pay would be $36.66 × 5 = $183.30.

Employers must document hours worked and earnings carefully to ensure calculations are accurate. Missteps with weighted averaging or overtime rates can lead to payroll errors, legal claims, and financial penalties. Following these steps helps avoid unnecessary risks.

Recordkeeping and Compliance

Keeping accurate records of hours worked is a non-negotiable requirement for adhering to Washington's overtime laws. Employers must document every hour worked by non-exempt employees, whether they're on-site, remote employees, or part of a hybrid team. Without a reliable process, errors can lead to payroll disputes, penalties, or compliance violations.

Best Practices for Tracking Hours

Employers should implement straightforward, reliable methods for tracking hours. Daily logs are the foundation of accurate timekeeping, and consistency is key.

Require employees to record their hours at the start and end of each shift, as well as for breaks. Digital time-tracking systems are preferred over manual logs to reduce human error.
Establish clear expectations for remote or hybrid employees to ensure accurate records. Provide guidelines for start times, lunch breaks, and clocking out after shifts.
Regularly review and audit timesheets. Address any inconsistencies immediately, and document corrections to maintain a clear record.

Avoid Averaging Hours

A common mistake is averaging hours across multiple weeks to offset overtime obligations. This practice is not allowed under Washington state law. Overtime must be calculated weekly. For example, if an employee works 38 hours one week and 42 hours the next, the employer must pay overtime for the two hours worked over the 40-hour threshold in the second week. Each workweek is treated as a separate unit for overtime calculations.

To avoid issues, ensure managers and payroll staff understand this rule. Missteps in calculating weekly overtime can lead to wage complaints or penalties.

Using HR Software and Time-Tracking Systems

Automated systems simplify compliance with Washington's overtime laws. Manual processes are prone to errors that can result in underpayments or overpayments. Digital time-tracking systems eliminate guesswork and improve record accuracy.

Timekeeping software: Allows employees to log hours in real-time, whether through mobile apps, desktop interfaces, or physical kiosks. Features like geofencing can ensure location-specific compliance for on-site roles.
HR platforms with overtime calculators: These systems can automatically calculate overtime pay, handle adjustments for multiple pay rates, and ensure compliance with wage laws.
Payroll integration: Connecting time-tracking systems directly to payroll ensures accurate payment for all hours worked, reducing disputes over overtime calculations.

Adopting a digital solution not only reduces errors but also saves time for managers and HR teams. It creates a streamlined process for both employees and employers, ensuring compliance with Washington's overtime regulations.

Navigating Washington's overtime laws requires attention to detail and a commitment to accurate recordkeeping. By understanding the rules, calculating pay correctly, and using reliable time-tracking methods, you can ensure compliance and avoid costly penalties. If you're looking for a comprehensive solution to streamline your HR processes and simplify overtime management, book a demo with GoCo today and see how we can help you stay compliant and focused on your business goals.