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Nobody ever said running a business was a walk in the park. As an employer, you have a lot of balls in the air, and compliance is just one of them. One really, really important one that, if dropped, could cost you a whole lot of money.
In addition to federal regulations, each state has their own share of employment related laws that business owners need to be aware of. Here, we’re highlighting some of these key state-specific requirements and laws, and offering guidance to help you keep up.
Bear in mind, this list is not comprehensive, and there may be local or industry-specific employment requirements that your business needs to comply with. It’s best to consult with counsel to ensure compliance with all applicable laws, as Justworks does not provide legal advice.
Payroll Tax Accounts
Because Justworks reports state payroll taxes on behalf of customers who utilize Justworks’ PEO services, such as unemployment, Washington Paid Family Medical Leave, and Washington’s Long Term Care Tax. This means Justworks may need to collect account information such as your account number and current rate. You can read more about it here: State Unemployment Insurance.
Recruiting & Hiring Practices
Under Washington's Equal Pay and Opportunities Act (EPOA), for all external and internal job postings, employers must include the salary range or wage scale, a general description of benefits, the number of paid holidays and sick days, and other compensation information. The requirements are technical and a failure to meet them risks both an administrative fine of $5000 or actual damages per “job applicant or employee” or a class action lawsuit for the same. The law applies even to positions that might be filled by a remote worker living in Washington. You can read more about the requirements here: Job Posting Requirements Fact Sheet
Salary History Ban
The EPOA also prohibits employers from asking about the wage or salary history of an applicant. An employer may confirm an applicant's salary after the employer negotiates and makes an offer of employment, including pay, and the offer is accepted by the applicant.
Applicants can voluntarily disclose their wage or salary history to prospective employers.
Washington Department of Labor & Industries: Equal Pay & Opportunities Act - Job Applicant Protections
Mineral*: Washington Salary Disclosure Requirements Expanded
Ban-The-Box
Under the Washington Fair Chance Act, covered employers may not do any of the following until after the employer initially determines that the applicant is otherwise qualified for the position:
- Inquire verbally or in writing about an applicant’s criminal record;
- Receive information through a criminal history background check;
- Otherwise obtain information about an applicant’s criminal record; or
- Implement policies or practices that automatically or categorically exclude job applicants with a criminal record, including rejecting applicants for failure to disclose a criminal record.
Covered employers include public agencies, private individuals, businesses and corporations, contractors, temporary staffing agencies, training and apprenticeship programs, and job placement, referral, and employment agencies. The law applies to all employers, regardless of the number of workers they employ.
This law does not apply to employers hiring someone who will or may have unsupervised access to children, vulnerable adults, or vulnerable persons; Washington law enforcement or criminal justice agencies; financial institutions, national or registered securities entities, or other employers who are permitted or required by law to ask about and consider information about an applicant’s criminal record for employment purposes; or employers seeking non-employee volunteers.
Washington State Office of the Attorney General: Fair Chance Act
Wage Theft Law
[Seattle]
Seattle’s Wage Theft Ordinance provides protections against wage theft by requiring payment for all compensation owed for work performed within Seattle city limits, payment of wages on a regular pay day, and the provision of certain written notice to employees about their pay information and rights. There are also mandatory hiring disclosures.
Seattle Office of Labor Standards: Wage Theft Ordinance
Credit History Ban
Under state law, employers are generally restricted from requesting a candidate’s credit reports. However, a credit report can be requested during employment screenings if the information is substantially related to the job’s requirements or if it is required by federal or state law.
Washington State Legislature: Credit Reports
Salary Range in Job Postings
Employers with 15 or more employees must include a wage scale or salary range, a general description of all benefits, and a general description of other compensation in job postings.
Washington Equal Pay & Opportunities Act: Job Postings
Mineral*: Washington Job Postings
Drug Testing
Effective January 1, 2024, employers are not permitted to make hiring decisions based pre-employment tests for nonpsychoactive legal cannabis metabolites, with some exceptions, such as in safety-sensitive positions or positions that require federal background check clearance. This law does not affect testing during employment.
State Law: Washington State Legislature
Independent Contractors
When deciding whether to classify workers as employees or independent contractors, there are a few things your business should consider, including the different tests that apply under various federal and state employment laws, and the potential penalties and other liabilities for misclassifying employees as independent contractors.
You can read our general Help Center article on contractors, and view information on how to determine if someone is a contractor or employee in Washington in the relevant section at the link below.
Washington State Employment Security Department: Independent Contractors
Mineral*: Washington Independent Contractors
Pay Requirements
Minimum Wage & Overtime
Washington rules on overtime, minimum wage, and exemptions can be found at the link below.
Washington State Dept. of Labor & Industries (L&I): Wage & Hour
You can also find guidance for employers in Washington on the state’s Equal Pay Opportunity Act from the Department of Labor & Industries Relations here.
The localities in Washington, listed below, have a higher minimum wage than at the state level. Minimum wages in these localities are always changing, and this list is always growing. The very best way to ensure compliance with all applicable laws is to consult with legal counsel.
Exempt Salary Thresholds
The Washington weekly minimum salary is higher than federal law. For 2024, the minimum salary for exempt employees is 2 times the minimum wage. These employees exempt from overtime pay must earn at least $1,302.40 a week ($67,724.80 a year), regardless of employer size.
The Washington Department of Labor & Industries (L&I) updated the overtime rules in 2020, creating an eight-year implementation schedule that incrementally raises the multiplier until it reaches 2.5 times in 2028. The pace of the increase is based on the size of the employer.
Washington L&I: Minimum Wage & Overtime Rules
Pay Parity Laws
Washington prohibits any protected classes under Washington’s Law Against Discrimination (e.g., race, age, disability, creed, religion, sexual orientation, citizenship, national origin, veteran status) can be a reason for pay differences between employees with similar jobs.
Unequal compensation among employees of different protected classes may be acceptable only if the entire pay differential is based on justifiable factors. Acceptable factors for differences in pay may include:
- Differences in education, training, or experience
- Seniority
- Merit/work performance
- Measuring earnings by quantity or quality of production
- Regional differences in compensation
- Differences in local minimum wages
- Job-related factors consistent with business need
Employers bear the burden of proof to justify why pay differences exist. An employee's previous wage or salary history cannot be used to justify pay differences.
Washington Equal Pay & Opportunities Act: Employee Protections
Mineral*: Washington Pay Equity and Transparency
Meal and Rest Laws
Employees must be allowed a paid rest period, free from duties, of at least 10 minutes for every 4 hours worked. No employee can work longer than 3 hours without a rest period.
Employees must be provided “reasonable access” to bathrooms and toilet facilities. Employers cannot restrict use of bathroom or toilet facilities to rigid time schedules (e.g., only during scheduled breaks), or impose unreasonable time use restrictions.
Employees must also be provided a meal period when they work more than five hours in a shift. A meal period must be at least 30 minutes long and start between the second and fifth hour of the shift. If meal periods are waived, employers should have a signed executed meal period waiver.
Depending on the length of the shift and the timing of the meal period provided, employees may also be entitled to additional meal periods, such as a shift of more than 10 hours.
Washington L&I: Rest Breaks, Meal Periods & Schedules
Lactation Accommodation Laws
Under Washington State Law, employers are required to provide:
- A reasonable break time for an employee to express breast milk for two years after the child’s birth and each time the employee has a need to express milk.
- A private location, other than a bathroom, if a location exists at the place of business or worksite which may be used by the employee to express breast milk.
- If the business location does not have a space for the employee to express milk, the employer will work with the employee to identify a convenient location and work schedule to accommodate their needs.
Washington L&I: Pregnancy Accommodations
Benefit Requirements
Commuter Benefits Requirements
[Seattle]
The City of Seattle requires employers with 20 or more employees (worldwide) to allow an employee to make a monthly pre-tax payroll deduction for transit or vanpool expenses.
Employers can offer commuter benefits through Justworks, or work with King County Metro directly.
Seattle Office of Labor Standards: Commuter Benefits
State Retirement Program
The Retirement Marketplace is the state of Washington's program designed to give employees access to a retirement savings plan when their employer does not offer a private plan meeting the minimum standards. You can read more about state retirement programs at the link below.
Justworks: State Retirement Programs
Washington (WA) Cares Fund
As noted above, employers are required to collect and remit premiums, via a payroll tax, into the Washington (WA) Cares Fund unless the employee has received a personal exemption through the state. The WA Cares Fund establishes a state-funded program to ensure that aging populations have access to long-term care programs such as in-home nursing, transportation costs, and meal assistance.
Deductions for the program began on the first payroll of 2022. Washington employees will be able to claim benefits beginning July 2026.
Special Note: There are provisions that allow employees to opt out of the state-funded program if they have long-term care coverage elsewhere. Members should e-mail Support@Justworks.com to discuss opt-out options and requirements.
Leave
Paid Sick Leave
Under Washington’s paid sick leave law, all nonexempt employees in Washington are eligible to accrue at least one hour of paid sick leave for every 40 hours worked for each calendar year (or other 12-month period).
Justworks: Washington Paid Sick Leave
Washington L&I: Paid Sick Leave
Mineral*: Washington Sick Leave
There are also additional requirements for employees working in Seattle and Tacoma. For example, these laws cover exempt employees and have higher accrual rates depending on the employer’s size. If state and local law conflict, employers must abide by the law that is most beneficial to the employee.
Seattle Office of Labor Standards: Seattle Paid Sick and Safe Leave
City of Tacoma: Tacoma Paid Sick Leave
Bereavement Leave
Eligible employees may take bereavement for the death of a newborn or newly adopted/fostered child under the Washington Paid Family and Medical Leave Act. This leave covers up to seven days following the loss of a child.
Additionally, the city of Tacoma’s paid sick leave law covers bereavement leave for a family member as defined by the law.
Washington Paid Family and Medical Leave Act
Washington Paid Family and Medical Leave (WA PFML) will provide partial income replacement for eligible employees. Employees apply directly through the state, which determines eligibility and pays the benefits.
Justworks: Washington Paid Family and Medical Leave
Washington Employment Security Department (ESD): Washington Paid Family & Medical Leave
Washington Family Care Act
Washington's Family Care Act allows workers to use their choice of any paid leave they have earned to care for qualifying family members with a serious health condition. The leave options include paid sick leave, vacation, paid time off, personal holidays, compensatory time (government employers only), and specific short-term disability plans. Under the act, however, leave cannot be used for a worker's personal medical condition.
Washington L&I: Family Care Act
Harassment & Discrimination
In addition to protections under Federal law, Washington law prohibits employment discrimination, including conduct arising to the level of unlawful harassment, based on membership in any protected class by employers covered under Washington's anti-discrimination laws. Washington’s law is more expansive than the federal law. For example, obesity is recognized as a protected class.
Washington State: Human Rights Commission
[Seattle]
The City of Seattle also adds political ideology and castes as protected classes under its anti-workplace discrimination laws. The law defines “caste” broadly as “a system of rigid social stratification characterized by hereditary status, endogamy, and social barriers sanctioned by custom, law, or religion.”
Seattle Office for Civil Rights
Harassment Training & Policy Requirements
Washington requires every hotel, motel, retail, security guard entity, or property service contractor with one or more employees to:
- Adopt a sexual harassment policy.
- Provide mandatory training to managers, supervisors, and employees to prevent sexual harassment, assault, and discrimination, and educate the workforce about protections for employees who report law violations.
- Provide a list of resources for employees to report harassment and assault.
- Provide a panic button to certain workers.
Washington L&I: Isolated Worker Protections
Separation
Final Wage Payment Requirements
When an employee’s employment terminates, their final wages must be paid on or before the next regularly scheduled payday. Employers cannot withhold final wages if the employee does not turn in keys, uniforms, tools, equipment, etc. There are very limited exceptions for allowed deductions taken from final wages.
Washington L&I: Getting Paid
Vacation Payout Requirements
Accrued, unused vacation time need not be paid out to the employee unless the employer’s policy requires it, the policy is silent, or the employer’s usual practice is to pay out. For this reason, it is recommended employers should clearly set forth in writing any policy with respect to unused vacation.
Washington State Legislature: PTO Payout at Termination
Business Closings and Layoffs
The Federal WARN Act imposes certain notice requirements and other obligations on covered businesses before conducting large-scale business closures, layoffs, or relocations. For more information, visit the link below. Washington does not have a state WARN statute.
U.S. Department of Labor: Worker Adjustment and Retraining Notification (WARN) Act Advisor
Notes
*Be sure you’re logged into your Justworks account with administrative permissions to access Mineral.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.