Duff on Hospitality Law

A new statewide leave law that has taken many employers by surprise

In November 2016, Washington voters passed Initiative 1433, best known for increasing Washington’s minimum wage to one of the highest in the nation. However, I-1433 also included a requirement for statewide paid sick leave (“PSL”) for non-exempt employees that has caught many employers by surprise.

The PSL law becomes effective on January 1, 2018, and the Department of Labor and Industries (“L&I”) just published final administrative rules about the law’s requirements. All Washington employers need to review these requirements and take action to ensure compliance.

When we last visited this topic, the proposed regulations revising the overtime exemptions were still very new. The regulations are due to go into effect on December 1 of this year. There has been legislation introduced to stop them from being implemented and court cases are pending. This article will remind you of the obligations, answer some additional questions that keep coming up and will bring you up to date on the efforts to stop the regulations from going into effect.

In December 2015, the City of Seattle passed the “Wage Theft Prevention and Harmonization Ordinance,” which made changes to all four of Seattle’s labor standards ordinances—Paid Sick and Safe Time (PSST), Minimum Wage, Wage Theft, and Fair Chance Employment.

Across the board, the new law provides harsher penalties for noncompliance than in the past. For example, there is now a rebuttable presumption that an employer has retaliated if it takes adverse action within 90 days of the employee’s exercise of protected rights. An employer in this situation must demonstrate by clear and convincing evidence that the protected activity was not a factor in the decision to take adverse action. Thus, it is essential to carefully document all responses to concerns about employees’ protected rights as well as reasons for adverse employment actions.