Everett workers at midsize businesses got a $1-per-hour raise on July 1, when the city's minimum wage for smaller employers jumped from $18.77 to $19.77.

The increase applies to businesses with 15 to 499 employees or more than $2 million in annual gross revenue from operations within Everett city limits, according to the city's 2026 minimum wage flyer. Either condition alone is enough to qualify a business for the higher rate.

For a full-time worker logging 40 hours a week, the new rate translates to roughly $41,122 a year, up from $39,042 under the prior rate. That's about $2,080 more per year in gross pay.

Who pays what

Large employers with 500 or more workers have been paying $20.77 per hour since Thursday, January 1, 2026. The smallest businesses — those with fewer than 15 employees and less than $2 million in Everett revenue — are exempt from the city ordinance and must meet only the Washington State minimum of $17.13 per hour.

The midsize tier sits $1 below the large-employer rate and $2.64 above the state floor.

How it got here

Everett voters approved Initiative Measure 24-01 in 2024, codified as Everett Municipal Code Chapter 5.08. The ordinance established a phased schedule to bring midsize employers up to the large-employer rate over three years. The first step took effect Tuesday, July 1, 2025, setting the midsize rate at $2 below the large-employer wage. The Wednesday, July 1, 2026 increase to $1 below is the second step.

Employer classification is based on the average weekly number of employees and annual gross revenue within city limits during the prior calendar year. Tips and service charges do not count toward the minimum wage calculation.

Compliance teeth

Employers must certify compliance with the Everett minimum wage when renewing their city business license. Failure to certify can result in denial or revocation of the license, according to the city flyer. Workers who assert their right to the city minimum wage are protected from retaliation and may bring civil action against employers who violate the ordinance.

Employers are also required to maintain records showing they meet the wage requirement.

What's next

he city's Finance Department will publish the 2027 large-employer rate by Thursday, October 15, 2026, based on the Seattle-Tacoma-Bellevue Consumer Price Index for Urban Wage Earners and Clerical Workers.