NewsBrief – January 2025

2025 Washington Employment Law Changes

Cascade Compliance Team
compliance@cascadeemployers.com

Below is a list of the Washington employment law changes that took effect on January 1, 2025. Washington employers need to make sure that their policies and procedures are updated accordingly and such changes are discussed with supervisors and employees.

Washington Minimum Wage Updates

• WA Labor & Industries announces the state’s new minimum wage on September 30th to go into effect on January 1st of every year. Additionally, multiple jurisdictions within Washington have minimum wages that exceed the state’s base minimum wage, with most increasing on January 1, 2025.

• Note: Washington State employers with minimum wage employees in different locations and/or those employees who travel for work, make sure you are paying wages accordingly.

Washington Salary Threshold Changes

• Effective January 1, 2025, the minimum salary thresholds are:
  • Small businesses: $1,332.80/week ($69,305.60 a year)
    (1-50 employees)
  • Large businesses: $1,499.40/week ($77,968.80 a year)
    (50+ employees)
  • Computer professionals: $58.31/ hour
    (all employers)
• Note: These salary thresholds set the minimum salary an employee must make to qualify for the “white collar” exemption from overtime. Along with meeting a salary threshold that is higher than the federal standard, employees must still meet the Fair Labor Standard Act “duties” test for executive, administrative, professional workers, or computer employees.

Washington Non-Compete Agreement Changes

• As a reminder, Washington state enacted a non-compete law with parameters employers must follow in order for a non-compete to be valid and enforceable under state law.
• Effective January 1, 2025, the following applies to non-competes:
  • Can apply only to employees who earn at least $123,394.17 or independent contractors who earn more than $308,485.43.
  • A non-compete agreement is generally presumed to be unreasonable and unenforceable if it lasts longer than 18 months.
  • Employers must disclose the terms of the non-compete in writing prior to the employee’s acceptance of employment or for current employees, supported by additional consideration like a pay raise or bonus.
  • If an employee is laid off, their non-compete is unenforceable unless the employer pays the full base salary through the non-compete period.

WA Paid Sick Leave (PSL) Qualifying Reasons

• Effective January 1, 2025, PSL will include leave related to when an employee's child's school or place of care has been closed after the declaration of an emergency by a local or state government or agency, or by the federal government.
• This is in addition to the previous Qualifying Reasons:
  • An employee’s own illness, injury, or health condition, including time off for medical diagnosis, care, treatment, and preventive care;
  • Caring for an employee’s family member with an illness, injury, or health condition, including time off for medical diagnosis, care, treatment, and preventive care;
  • An employee’s workplace or their child’s school or place of care has been closed for any health-related reason by order of a public official or due to a declaration of an emergency by a local, state, or federal government, which may be unrelated to health issues;
  • An employee absence from work for reasons that qualify for leave under the Domestic Violence Leave Act, such as seeking treatment for injuries caused due to domestic violence, sexual assault, or stalking.

WA Paid Sick Leave (PSL) Family Member Definition

• Effective January 1, 2025, under PSL, the definition of family member includes:
  • Any individual who regularly resides in the employee’s home, unless that individual only resides in the same home and there is no expectation of care by the employee.
  • An individual for whom the relationship creates an expectation that the employee will care for the person, and that individual depends on the employee for care.
  • The spouse of an employee’s child.
• This is in addition to the previous family member definition including an employee’s:
  • Child (biological, adopted, foster child, stepchild, child the employee is legally responsible for); parent (employee’s biological, adoptive, or foster parent, stepparent, or someone who was the employee’s legal guardian or their spouse or registered domestic partner – or a person who was legally responsible for the employee when they were a minor); spouse; registered domestic partner; grandparent; grandchild; and sibling.

Washington Warehouse Worker Quotas

• HB 1762, effective January 1, 2025, regulates the use of production quotas or standards at warehouse distribution centers.
• This law applies to employers who employ or are engaged with at least:
  • 100 non-exempt employees in a single distribution center, or
  • 1,000 non-exempt employees in multiple distribution centers in Washington
• Covered employers are required to:
  • Give new employees a written description within 30 days of hire about quotas, any adverse actions that could be taken for not meeting quotas and any bonuses or incentives for meeting or exceeding quotas.
    • The written description must be understandable, in plain language, and in the employee's preferred language.
  • Notify employees in writing within 2 business days when a quota requirement is changed.
  • Take into consideration when enacting quotas the time it takes for an employee to take time:
    • For rest and meal breaks (including the time it takes to travel to that designated area).
    • To use the restroom.
    • To take any actions necessary for the employee to exercise safe and healthful workplace rights such as time to access tools or safety equipment.
    • To perform any activity required by the employer in order to perform work on the quota.

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