Employers might be tempted to take a wait-and-see

attitude toward Washington’s new overtime rules that will dramatically increase

pay for some salaried workers. 

Unlike the new minimum wage rate and paid family leave,

which took effect on New Year’s Day, the overtime rules don’t change until July

1.

Between now and then is the short session of the

Washington Legislature, which convened Jan. 13 for a 60-day session.

Lawmakers will be under pressure to walk back

or at least minimize the impact of the overtime rules

enacted by the state Department of Labor and Industries rules in December.

The Tri-City Regional Chamber of Commerce, for one, wants

Olympia to delay implementation or, failing that, to yoke wages to the

local cost of living, sparing rural areas the influence of Seattle

prices.  

The Association of Washington Business will emphasize

the new rules’ potential to chill hiring as part of its larger pro-jobs message. 

Employment law is an ever-changing landscape and

2020 is no exception. In addition to the new overtime rules, Washington

employers must adapt to a host of changes.  

Most Washington workers were able to start taking paid

leave under the state’s new Family and Medical Leave law on Jan. 1. 

And the minimum wage for non-salaried workers rose to

$13.50 an hour on Jan. 1. 

In a lesser change, the Internal Revenue Service has

adjusted W-4 forms to reflect the Tax Cuts and Changes Act.  

Here’s a look at the key changes and what they mean to

employers. 

Overtime for salaried workers 

In November, the Department of Labor and

Industries enacted rules that raise the minimum annual salary for

management employees to $35,100, on July 1, rising to $79,872 by

2026. 

Employers have a choice for employees who earn

less. 

They can raise salaries to meet the new minimum, or

convert them to hourly workers, making them eligible for overtime when

they exceed 40 hours in a week. 

It’s a “monumental” change, said George Cicotte, a

Kennewick employment attorney. 

The change promises to affect everyone, from hotel

operators who rely on front-line managers to fill in for absent maids, to

nonprofits whose staff work erratic schedules. 

Cicotte advises against hoping lawmakers will step

in. 

“Employers should probably have

started planning for them on Jan. 1,” Cicotte said. “There are going to be

tons of people who are going to be eligible for overtime that weren’t

eligible.” 

Labor and Industries implemented the change through the

rule-making process, which opens the door for the Legislature to

intervene. 

It’s a legislative priority for the regional

chamber. 

The regional chamber adopted a policy paper calling on

lawmakers to delay implementation until Jan. 1, 2021, to give employers more

time to adapt. 

It also proposes slowing down

the implementation schedule. Instead of raising salaries over the six

years Labor and Industries contemplates, the chamber proposes a 10-

to 12-year schedule.  

The chamber also supports indexing wages to the local

cost of living rather than the state one, which is skewed by the Seattle metro

area.

The Association of Washington Business acknowledged the

state’s former overtime protections for salaried workers was outdated and

needed adjustment.  

But it believes Labor and Industries went too

far. 

Paul Guppy, the association’s legislative director, said

the overtime rules will have a chilling effect on jobs, but that it will be

masked by the state’s low unemployment and strong economy. 

They reduce flexibility and will cause discontent among

formerly salaried workers who find themselves “demoted” to hourly.  

“Every time public officials impose artificial rules on

job opportunities, there are fewer job opportunities,” he said. 

 Paid Family and Medical Leave 

Washington workers and employers began paying

premiums to the state unemployment fund to cover paid leave on Jan.

1, 2019. 

Now, workers can start claiming the new state-run

benefit. 

The premium payment amounts to 0.4 percent of

gross wages, split between the worker and the employer. 

A worker earning $50,000 a year pays about $127 in

annual premiums while their employer pays about $73. 

Businesses with fewer than 50 employees don’t pay the

employer portion of the premium. 

Qualified workers can take 12 or more weeks of paid

leave to care for new children, recover from surgery, care for ill family

members and other major life events. 

The state – not employers – pays workers who take paid

leave – 90 percent of their average weekly wage, up to $1,000 per

week. 

But employers must be prepared to hire temporary

replacements.  

That takes planning, Cicotte said. 

Workers who worked at least 820 hours in 2019 are

eligible for paid leave. Most workers can take up to 12 weeks off, though more

generous benefits are available for childbirth or complicated

pregnancies. 

Leave is available for cancer treatments, to assist

siblings in treatment, to recover from injuries, or extended hospital stays

with premature babies and more. 

Not all workers are eligible.  

Federal workers, workers on tribal land and the

self-employed are not covered by the new act, nor are those covered by a

collective bargaining agreement. 

 Minimum wage 

Washington’s minimum wage rose to $13.50 an hour on Jan.

1, one of the highest in the nation. 

It’s the final raise awarded through Initiative 1433,

which voters approved in 2016. 

Starting next year, Washington’s minimum wage will be

tied to the Consumer Price Index. 

Workers age 16 and over are eligible for the full rate.

Workers age 14 and 15 may be paid at least 85 percent of the minimum wage, or

$11.48 an hour in 2020. 

 New W-4 forms 

The U.S. Treasury and Internal Revenue Service have

simplified the W-4 to make it easier for employees to claim the proper

deductions under the Tax Cuts and Jobs Act. 

Many weren’t having enough deducted from their

paychecks, leading to unpleasant surprises at tax filing time. 

Employees aren’t required to complete a new

W-4.   

 On the Statehouse radar

Secure Scheduling. The city of Seattle mandated

predictable schedules for shift workers two years ago. The Legislature

considered it in 2019 but the bill did not pass. It is expected to return in

2020. The 2019 edition would have required food service, hospitality and retail

employers with more than 250 workers to give at least 14 days’ notice of work

schedules. Employers in rural counties would have been exempted.  

Domestic Worker Protections. State Attorney General Bob

Ferguson is requesting funding to explore the idea of extending health, safety,

wage and other protections to nannies, housekeepers and other domestic

workers, a group that has historically been excluded from labor protections.

Gov. Jay Inslee’s amended 2019-21 budget presumes the Legislature will

authorize the expense. If approved, a work group will examine if domestic

workers should be eligible for paid sick leave and other protections.