14 November 2016

Washington votes for statewide paid sick leave, increase in the state minimum wage

On November 8, 2016, voters approved Initiative Measure No. 1433 which would (1) effective January 1, 2018, require employers to provide paid sick leave; and (2) effective January 1, 2017, increase the state minimum wage incrementally over four years.

The Initiative Measure No. 1433 ballot question read: "This measure would increase the state minimum wage to $11.00 in 2017, $11.50 in 2018, $12.00 in 2019, and $13.50 in 2020, require employers to provide paid sick leave, and adopt related laws. Should this measure be enacted into law?" 58.05% of voters approved the measure, while 48.15% voted no.

Paid sick leave

Beginning on January 1, 2018, employers will be required to provide paid sick leave to employees covered by the state Minimum Wage Act at the employee's pay rate or at the new minimum wage, whichever is higher. At minimum, employees must be allowed to accrue paid sick pay at the rate of one hour of paid sick leave for every 40 hours worked. Employers will be required to allow use of paid sick leave after 90 days of employment. Paid sick leave may be used for an employee's own medical needs, to care for a family member's medical needs or for domestic violence leave.

Employers will be required to provide their employees with regular notice about the amount of paid sick leave they have earned. Up to 40 hours of sick leave must be carried over to the following year. Employers will not be required to pay employees for their unused sick leave when the employee leaves; however, if an employee leaves a job and is rehired by the same employer within one year, previously earned sick leave must be reinstated.

Increase in minimum wage

The minimum wage, which under current law was to increase from $9.47 per hour to $9.53 per hour on January 1, 2017, will instead increase for employees who are at least 18 years old to $11.00 effective January 1, 2017; $11.50 on January 1, 2018; $12.00 on January 1, 2019; and $13.50 on January 1, 2020. Beginning on January 1, 2021, the minimum wage rate would again be adjusted each year according to the rate of inflation. If a local law requires a higher minimum wage within a city, the local minimum wage would apply.

Under current law, employees aged 14 and 15 may be paid at a minimum wage equal to 85% of the minimum wage in effect for the year — for 2017, at $8.10 per hour. The Washington Department of Labor and Industries must now set the minimum wage for employees under 18 years old as of January 1, 2017. For more on the state minimum wage, see the Department's website.

Higher minimum wage rates apply in the cities of Seattle, Sea-Tac, and Tacoma.

The Department will enforce the new paid sick leave and state minimum wage law and must adopt rules for implementing and enforcing it.

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Contact Information
For additional information concerning this Alert, please contact:
 
Employment Tax Services Group
Debera Salam(713) 750-1591

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Other Contacts
Employment Tax Services Group
Gregory Carver(214) 969-8377
Richard Ferrari(212) 773-5714
Kenneth Hausser(732) 516-4558
Kristie Lowery(704) 331-1884
Christina Peters(614) 232-7112
Debbie Spyker(720) 931-4321

Document ID: 2016-1941