COAST RIVER BUSINESS JOURNAL
BUSINESS NEWS
JANUARY 2020 • 13
New Washington business laws to know for 2020
OLYMPIA — Washington state busi-
nesses need to be aware of a variety of
new laws that will affect operations in
2020.
than 18 months in duration after the ter-
mination of employment are presumed
unreasonable.
Employers should:
• Review standard form agreements and
employee handbooks to confirm whether
the non-compete provisions are compliant
• Revise non-compliant agreements and
employee handbooks to enhance confiden-
tiality and non-solicitation restrictions.
Minimum wage goes to $13.50
The state minimum wage increased on
Jan. 1 from $12 an hour to $13.50.
Paid Family Medical Leave
Employees who have worked 820
hours in Washington state in the last 12
months and have had a qualifying life
event can take advantage of a new insur-
ance program called Paid Family Medi-
cal Leave.
Workers are eligible for 12-18 weeks
of paid leave for events like: the birth or
adoption of a child, a serious health issue,
a serious health issue of a family member,
and certain military events, including the
return of a family member.
Not eligible for the program are federal
employees, people employed by a busi-
ness on tribal land, or self-employed peo-
ple who choose not to opt into the state
program.
Workers will receive up to 90 percent
of their weekly pay — up to a maximum
of $1,000 per week.
Employers are not required to keep
jobs open if the company employs fewer
than 50 people, the employee has worked
for the company for less than a year, or if
they’ve worked less than 1,250 hours in
the year before the leave.
Overtime rules
For the first time since the 1970s, Wash-
ington is overhauling its overtime rules.
The Department of Labor and Indus-
tries announced the rule changes on Dec.
11, which will go in effect on July 1, 2020.
The new rules will make an estimated
259,000 additional workers eligible for
overtime pay by the time the rules are
fully implemented in 2028, with another
235,000 workers having protections
strengthened.
Starting on July 1, the minimum sal-
ary threshold needed for a company to not
pay a worker overtime rates increases from
$250 a week to $675 a week, which places
the new threshold to 1.5 times Washing-
ton’s minimum wage.
The minimum salary threshold will con-
tinue to increase yearly until 2028, when
it will reach a rate of about $1,603 a week,
or $83,356 a year.
In the years after 2028, the thresh-
old will increase to match minimum wage
increases caused by inflation.
Public discrimination
Affecting every business with premises
open to the public as of January 2019 —
Washington law clearly imposes direct lia-
bility on employers for their employees’
unlawful discrimination against or harass-
ment of customers or other third-par-
ties in places open to the public — even
if employers do not know of the dis-
crimination and are not negligent in their
supervision of employees. Employers are
encouraged to consult their attorney and/
or insurance agent to make sure that they
have adequate employment practices lia-
bility insurance coverage for potential
third-party claims and continue to invest in
harassment and discrimination prevention.
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The new rules also change the criteria
for when an employer is exempt from pay-
ing an employee overtime. The exemp-
tions will stipulate that workers must
have a fixed salary, perform a certain list
of duties and make more money than the
threshold.
This puts Washington’s rules more
in-line with federal regulations.
Gift card expiration dates
Have you ever received a gift certifi-
cate for a birthday or other occasion, only
to forget about it and have it expire before
you use it?
Well, starting July 1, 2020, this will no
longer be an issue in Washington.
Businesses in Washington can no lon-
ger provide gift certificates that have an
expiration date, fee or dormancy charge.
This includes gift certificates given as part
of a purchase of “personal property or
services.”
However, an expiration date can be
issued still if it is part of a rewards or loy-
alty program, or if it is given to a charita-
ble organization without being exchanged
for anything.
Salary history ban
As of July 28, 2019, employers in
Washington state are prohibited from col-
lecting or seeking the wage or salary his-
tory of an applicant for employment.
Employers must also disclose the mini-
mum wage or salary for the position upon
request from an applicant.
Salary history questions can creep into
hiring practices in multiple places, so your
company should:
• Be sure to review employment appli-
cations, job descriptions, and any other hir-
ing paperwork
• Train all personnel involved in hiring
on the new laws to ensure company-wide
compliance.
Restrictions on non-compete
clauses
As of Jan. 1, 2020, employers will
no longer be allowed to put in place or
enforce non-compete agreements with
employees earning less than $100,000
per year or independent contractors earn-
ing less than $250,000 per year. Addition-
ally, any non-compete agreements longer
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