What Every Business Owner Should Know About Washington State Employment Law

As a business owner, you want to stay on the right side of the law so you can continue making money without expensive legal trouble. Employment lawsuits can severely disrupt your operations and harm your brand reputation, so it’s better to avoid them when you can.

Washington State and the federal government have a variety of laws that business owners need to follow. We break down some of the most important employment law basics for business owners to know about below.

1. Wages and Hours

Washington State has a higher minimum wage than many other parts of the U.S. In most parts of the state, the minimum wage is $16.28 per hour in 2024, and that amount is adjusted for inflation each year. However, some cities and counties have a higher minimum wage, such as the Seattle minimum of $19.97 per hour in 2024.

Our state also requires employers to offer meal breaks and rest periods. If one of your employees works a shift that lasts more than five hours, you must offer them a meal break. You must also offer at least one paid ten-minute rest break for every four hours worked in most roles. Employees who are nursing have a right to take more frequent breaks.

You cannot discharge an employee because their earnings are subject to wage garnishment for any one debt.

2. Employee Leave

As an employer in Washington State, you must give your workers at least one hour of paid sick leave for every 40 hours they work. This policy applies to all employers and workers, regardless of whether they are full-time, part-time, temporary, or seasonal workers.

Washington State also requires you to let employees take time off work while maintaining their job security in some situations. These situations include parental leave, pregnancy, caring for a family member, domestic violence situations, leave for military families in certain situations, and leave for emergency service personnel, among others. Washington’s Paid Family and Medical Leave program lets employees take up to 12 weeks of paid leave per year in certain situations.

3. Employee Safety and Health

In Washington State, workers have the right to safe conditions that do not harm their health. Like other U.S. workers, most Washington State workers are covered by the Occupational Safety and Health Act of 1970, which requires employers to meet various standards designed to reduce hazards.

Depending on the type of work your employees do, you may need to implement engineering controls that limit employees’ exposure to toxic substances, offer training, ensure employees use personal protective equipment, and more. You can ask a business lawyer about which standards apply to the work your employees do.

Federal law also protects your employees from sexual harassment and discrimination. Employees who experience either of these issues can file a complaint with the government. Your business cannot fire or retaliate against an employee who exercises this right, nor any other protected right they have under the law.

In most cases, you cannot hire minors under the age of 16 to work. However, you can hire minors aged 14 or 15 under certain conditions for a few specific jobs, such as delivering newspapers, acting, or working for their parents in their parents’ solely-owned business.

4. Other Workplace Standards

The federal and state governments have a variety of other laws you should be aware of as an employer in Washington state. Here are a few important ones:

• Under the federal Worker Adjustment and Retraining Notification (WARN) Act, if you have 100 or more employees, you must provide notice at least 60 days before a mass layoff or plant closing.
• There are numerous statutes protecting whistleblowers who file complaints with the Occupational Safety and Health Administration (OSHA) if they believe their health and safety rights have been violated.
• All employees in the U.S. have the right to receive reasonable accommodations for religious beliefs and certain medical conditions, such as the right to follow religious dress and grooming practices, as long as they don’t pose an undue hardship on the employer.
• The Federal Trade Commission (FTC) recently announced a new rule that makes nearly all non-compete agreements with employees unenforceable.

5. Employer Taxes

Nearly all businesses with employees in Washington State are required to file annual income tax returns and pay quarterly estimated taxes. Many businesses also need to pay excise taxes for manufacturing or selling certain products, such as gasoline and tobacco.

There are different tax rules for different business structures, so you may want to talk to a CPA about your tax situation.

Employment and Business Law FAQs

Is Washington an at-will employment state?

Yes, Washington is an at-will employment state. That means employers can fire an employee at any time as long as they don’t violate any laws that protect employees in certain situations. Employers don’t need to provide a reason or give notice before firing employees.

However, employers cannot fire or otherwise retaliate against an employee who uses a protected right, such as an employee who takes leave for medical reasons or who acts as a whistleblower. There are also federal laws requiring that employers give 60 days of notice before a mass layoff or plant closure.

Is Washington a right-to-work state?

No, Washington is not a right-to-work state. Labor unions can negotiate contracts with employers that require certain employees to have union membership. Employees who don’t join a union at their workplace may still need to pay for the costs of union representation.

Are non-compete agreements allowed?

In April 2024, the FTC announced a new rule that effectively bans nearly all non-compete agreements with employees, although it is not yet enforced as of this writing. Washington State has its own restrictions on non-compete agreements. Among other rules, you cannot use a non-compete agreement with any employee who earns less than a minimum compensation amount, which is $120,559.99 for employees and $301,399.98 for contractors in 2024.

Have More Questions About Washington State Employment Law?

Anderson Hunter Law Firm has been helping business owners in Washington State for over a century. We can offer employment law advice, review employee agreements, conduct wage and hour audits, keep you updated on changes in employment law, and litigate on your behalf if needed.

Schedule a consultation with us today for help with your business law needs.