Seattle Minimum Wage 2026 — What You Need to Know
As of January 1, 2026, all employers in Seattle must pay at least $21.30 per hour, regardless of business size. This applies to all employees who work within Seattle city limits for at least 2 hours per week.
No Tip Credit in Seattle
⚠️ Important: Seattle eliminated its tip credit effective January 2025. Some websites still incorrectly show a $2.19/hr tip credit — this no longer exists. All tipped employees in Seattle must be paid the full $21.30/hr minimum wage before tips.
Hidden Costs Beyond the Wage
The $21.30/hr base wage is just the starting point. Seattle employers must also account for:
- Paid Sick & Safe Time (PSST): 1 hour for every 40 hours worked, up to 72 hours/year for businesses with 250+ employees
- WA Paid Family & Medical Leave (PFML): 1.13% of wages (2026), split between employer and employee for businesses with 50+ employees
- WA Cares Fund: 0.58% of wages, paid by employees but remitted by the employer
- Workers' Compensation: Varies by industry risk class
- Secure Scheduling: For retail/food service with 500+ employees globally — predictability pay for schedule changes
What This Means for Restaurant Owners
Seattle restaurants face some of the highest labor costs in the nation. With no tip credit, a $21.30/hr minimum wage, mandatory sick leave, and PFML contributions, the true cost of a full-time minimum wage employee is approximately $25-28/hr — before any benefits you voluntarily provide.
This is why Seattle restaurant profit margins average just 1.5% compared to the national average of 4%.
Source: Seattle Office of Labor Standards. Rates effective January 1, 2026. This calculator provides estimates only and is not legal or financial advice.