Washington minimum wage and no tip credit for restaurants (2026)

If you came to Washington from a state with a tip credit, the first surprise is that there isn't one. Washington requires employers to pay every worker the full state minimum wage before tips, and tips go on top. That changes how you think about labor cost, menu prices and service charges. This guide explains the 2026 figure, who it covers, how city rates can be higher, and how owners plan around it. It is general information, not legal advice, and the Department of Labor & Industries is the place to confirm any number.

What is the Washington minimum wage in 2026?

The state minimum wage is $17.13 an hour from January 1, 2026, up from $16.66 in 2025. The Department of Labor & Industries adjusts the rate each January 1 for inflation and announces the new figure in the fall. Because the rate changes every year, put a reminder in your calendar for late September to look up the next one and update payroll before the first pay period of January.

Is there a tip credit in Washington?

No. Tipped employees must be paid the full minimum wage directly, with tips on top. The Department of Labor & Industries says that businesses may not count tips or service charges paid to an employee toward that employee's hourly minimum. This is a major difference from states that allow a lower cash wage for tipped staff. The practical result is that servers in Washington typically earn more per hour before tips than servers in many other states, and the restaurant carries a higher fixed labor cost.

Do city minimum wages apply too?

Some Washington cities and areas set minimums above the state rate, and rates differ by city and sometimes by employer size. Sources disagree on the highest figures, so look up your own city's current rate on its official site. If you have more than one location in different cities, you may pay two different minimums. When you hire, always check the rate for the city where the employee works, not where your head office sits.

How are young workers paid?

Workers aged 14 and 15 can be paid 85 percent of the minimum in Washington. There are also limits on hours and times for minors, and a work permit requirement for young workers, which the Department of Labor & Industries explains. Check those rules before scheduling a teenager for a closing shift. Hiring young workers can help in a tight labor market, but it takes supervision and a clear plan for tasks that are allowed, such as dish and prep work that does not involve restricted equipment. Keep a copy of the work permit and the schedule in each young employee's file.

How do service charges work?

A service charge is not a tip. If your restaurant adds a mandatory charge, it must be described clearly, and it cannot be used to meet the minimum wage for the employee who received it, according to the state's guidance. Some Washington restaurants have added service charges to fund higher kitchen pay. If you do this, state the purpose on your menu and receipt, check the tax treatment with the Department of Revenue, and be clear with staff about how the money is distributed.

How should you price and schedule around higher wages?

Higher fixed wages make slow shifts expensive and busy shifts valuable. Three habits help.

• Schedule to demand. Use last year's sales for the same weeks to decide how many people you need each shift.
• Cross-train staff so that a server can cover a bar or a host stand on a quiet night.
• Review your menu price once or twice a year against your real food and labor cost, and change items that lose money.

Owners often find that a small increase on a high-volume dish does more than a large increase on a slow one. Work out what each shift costs in wages before tips, then compare it with what that shift sells. A shift that sells less than it costs is a candidate for a shorter day, a smaller team or a better reason to come in. Do the same exercise for the whole week, so that you see which days carry the others.

What records should you keep?

Keep time records, pay records and any written policy on service charges and tips. Keep them for the period the Department of Labor & Industries requires. Pay on a regular schedule and give each employee a statement showing hours and rates.

What other Washington rules affect labor?

Paid sick leave, meal and rest breaks and overtime rules all apply in Washington. Seattle has additional rules, including scheduling rules for larger employers, which depend on size. Ask the Department of Labor & Industries or your city about the rules that apply to your size and location. Budget for payroll taxes and insurance on top of wages, because the true cost of an hour is higher than the rate on the schedule. A bookkeeper who knows Washington restaurants is worth the fee, particularly in the first year, when a missed rule can cost more than the bookkeeper.

Is your restaurant paying for empty tables?

When every hour on the clock costs the same, the way to make a shift pay is more guests in it. Mosey is a food-first app where diners search by dish and mood, rate what they ate and keep lists of places they want to try, and where independent restaurants and cafes get tools for their own page, menu and regular guests. If you want guests to find your cooking on the shifts you already staff, that discovery side is what Mosey is built around.

More guides for your business:

• How to get a restaurant liquor license in Washington (2026)
• Restaurant marketing on a small budget in Washington
• Washington food worker card: who needs one and how to get it

More in the US guides for food businesses.