Employer Alerts & Employment Law Updates

On September 19, 2025, President Trump signed a new Executive Order entitled “Restriction on Entry of Certain Nonimmigrant Workers.” The Order significantly changes how employers can petition for H-1B workers located outside the United States, and it carries major financial implications for companies relying on global talent.

L&I has released a new Washington State poster: Job Safety & Health Law. You can find the updated poster here: https://www.lni.wa.gov/forms-publications/F416-081-909.pdf

The Worker Adjustment and Retraining Notification Act (WARN) is a federal law that requires employers with 100 or more employees to provide 60 day’s advanced written notice of a plant closing or mass layoff.  Advanced warning is intended to give affected employees the opportunity to seek assistance, find alternate jobs or obtain training.  Many states have enacted their own requirements to provide additional protections to employees.  The state requirements are often called state WARN acts or Mini-WARN acts and the requirements are in addition to the federal requirements. 

Effective July 27, 2025, Employers may no longer require a driver’s license as a condition of employment or include such a requirement in job postings, unless a driving is an essential function of the job or driving is related to a legitimate business purpose.

Washington Minimum Wage Act Amended to Prohibit Employer Coercion Based on Immigration Status

Good News for Employees: Expansion of EPOA Protected Classes

On April 25^th, Spokane Mayor, Lisa Brown, signed the Ban the Address ordinance which is reportedly the first in the country to prohibit discrimination against job applicants based upon housing status.  The ordinance expands fair chance hiring requirements and is intended to protect homeless job applicants.  Employers will be generally prohibited from requiring an applicant to provide their address on a job application.  Employers will also be restricted from inquiring more generally into an applicant’s housing status until after a provisional job offer is made. Once a provisional offer of employment is made, an employer may then inquire into an applicant’s address or residence history. 

Please take note of various regulatory changes that are due to take effect in Washington this year. If you have any questions, please reach out to Member Care!

The federal minimum wage will remain at $7.25 per hour. 

Changes to the Federal Salary Threshold for Overtime Exempt Employees

A ruling by a Texas district court...

For 2025, Idaho employers will continue to follow the federal minimum wage of $7.25 per hour, which is unchanged from 2024. Frequently Asked Questions on Labor Laws...

Effective January 1, 2025, Montana’s minimum wage increased from $10.33 per hour to $10.55 per hour. Employers not covered by the FLSA whose gross annual sales are $110,000 or less are only required to pay $4.00 per hour. If, however, an individual employee is producing or moving goods between states or that individual employee is otherwise covered by the FLSA, the employee must be paid the greater of either the federal minimum wage or Montana’s minimum wage. Most businesses are covered by the FLSA. More information about whether your business is covered by the FLSA can be found here.    

Washington’s Department of Labor and Industries announced that the 2025 state minimum wage increase from $16.28 per hour to $16.66 per hour for workers ages 16 and older.  Workers who are ages 14 and 15 will see an increase to their minimum wage as well as the rate will increase to $14.16 per hour effective January 1st.  Local jurisdictions are also entitled to set their own minimum wage higher than the state requirement.  Bellingham, Burien, Renton, Sea-Tac, Seattle, Tukwila, and unincorporated King County all have local minimum wages for 2025.

Last week, Washington voters rejected state ballot Initiative 2124, which aimed to change the law governing the WA Cares Fund. The initiative would have allowed Washingtonians to opt out of paying assessments for and receiving benefits from, the state-run long-term health care insurance program.

A Texas federal judge recently upheld a challenge to the Federal Trade Commission’s sweeping ban on non-compete agreements, blocking the new rule from taking effect as planned on September 4^th.

The U.S. Department of Labor (DOL) has recently issued a final rule that revises the classification criteria for independent contractors. This rule, which takes effect March 11, 2024, marks a departure from the 2021 rule which considered fewer factors and emphasized two factors are most important to the determination.  The new rule reinstates the economic reality test which evaluates the totality-of-the-circumstances when considering six key factors equally. While these factors are not exhaustive, they play a crucial role in determining whether a worker should be considered an independent contractor or an employee.  The DOL explained that the new rule brings the independent contractor analysis back into conformity with longstanding case law and the text of the FLSA.

As previously communicated in our May 2, 2024, Employer Alert, the DOL recently updated regulations related to exemptions from minimum wage obligations under the Fair Labor Standards Act (FLSA) for executive, administrative, professional, or computer employees, as well as highly compensated employees.

Burien, Renton, and Bellingham join Tukwila, Seattle, and SeaTac in enacting their own minimum wage rates in excess of the state-mandated rate of $16.28. Each of the three cities has recently passed ordinances governing employment standards including minimum wage for non-exempt workers in addition to other protections.

The DOL has updated regulations related to exemptions from minimum wage obligations under the Fair Labor Standards Act (FLSA) for workers who fit within the executive, administrative, professional, outside sales, or computer professional exemptions, as well as highly compensated employees.

Effective June 6, 2024, Washington’s non-compete statute relates not only to agreements prohibiting individuals from engaging in a lawful profession, trade or business, but also to agreements that directly or indirectly prohibit the acceptance or transaction of business with a customer generally. Non-solicitation, confidentiality and trade secret agreements continue to be allowable under the law, as well as covenants entered into by a party buying or selling a business so long as the person signing the agreement sells, buys or disposes of an interest of at least one percent of the business.

The FTC has issued a final rule banning all non-compete clauses entered into on or after the rule’s effective date except those related to the bona fide sale of a business. Additionally, the rule invalidates all existing non-compete clauses except for those related to “Senior Executives.” Non-competes for “Senior Executives” which are in existence prior to the effective date of the rule are not invalidated. “Senior Executives” are defined as those individuals earning at least $151,164 and in a “policy-making position.”

Washington’s Equal Pay & Opportunities Act currently protects women from pay disparities and impediments to advancement opportunities. Beginning July 1, 2025, the protections are expanded to all protected groups. Employers may not offer disparate compensation for similarly situated employees unless there is a legitimate reason for doing so that is unrelated to the affected employee membership in any protected group. Employers continue to be restricted from prohibiting employees’ open discussion of wages and must comply with limitations related to information that may be obtained during interviews and requirements for job postings, among other issues addressed in the Act.

Washington has enacted the Free Choice Act which protects Washington employees from requirements by their employer to attend meetings or listen to their employer’s statements related to political or religious issues. Employees may decline to attend such meetings and are protected from retaliation where the employee, instead, chooses to perform their job duties.

Senate Bill 5793 was passed by the Washington Legislature and signed into law by Governor Jay Inslee. This bill amends the Paid Sick Leave statute, impacting how and when paid sick leave can be utilized, and providing clearer definitions for "family members."

Beginning January 1, 2024, Washington employers are generally prohibited from discriminating against applicants based on the candidate’s cannabis use while off-duty and away from the workplace. Employers are also restricted from receiving and considering pre-employment drug screens for cannabis*, except in certain fields including law enforcement, fire departments, first responders, those working in jail and detention facilities, those working in airline or aerospace industries, and “safety sensitive position[s] for which impairment while working presents a substantial risk of death.”  RCW 49.44.240.  

The Washington Employment Security Department (ESD) announced Wednesday that beginning January 1, 2024, Paid Family and Medical Leave (PFML) premium rates will decrease from 0.8% to 0.74%.  Employers will pay 28.57% of the total premium, while employees will pay 71.43%.  Unless they choose to do so, employers with fewer than 50 employees are not required to pay the employer portion of the premium.  Collection of the new premium amounts will begin on January 1, 2024, and first-quarter premiums are due by April 30, 2024. 

The Washington State Department of Labor and Industries has released the updated Salary Threshold Implementation Schedule for 2024. The threshold salary requirement for exempt employees is determined through a calculation based upon minimum wage.  For 2024, the salary threshold was pre-set by the Legislature to be twice the minimum wage.  Each time a new schedule is released, it provides the salary thresholds for the upcoming year and estimated thresholds for the remaining years based upon projections of minimum wage.  Since the values for future years are based upon projections that may change, it is important that employers who wish to classify employees as exempt verify the threshold numbers each year.       

Effective January 1, 2024, Washington’s minimum wage for non-exempt employees 16 years and older will increase to $16.28 per hour.  State law allows workers aged 14-15 to be paid 85% of the minimum wage.  Accordingly, the minimum wage for workers aged 14-15 will increase to $13.84.  The federal minimum wage remains unchanged at $7.25 per hour for 2024. 

On August 1, 2023, U.S. Citizenship and Immigration Services (USCIS) published an updated Form I-9, which is used to verify an employee’s identity and employment authorization. The updated form provides an optional alternative to the in-person physical document examination method, and a check box to indicate that an alternative verification process has been used. Only employers who are enrolled in E-Verify, and participating in good standing (“Qualified Employer”), will be able to use the optional alternative process which allows for virtual verification.

The federal Pregnant Workers Fairness Act (PWFA) takes effect on June 27, 2023. The PWFA requires employers to post a notice describing the various protections under the new law. On June 27^th, employers should remove their old EEOC “Know Your Rights” posters and replace them with the updated version found here. 

The Summary of Rights Under the FCRA is a required disclosure employers must give candidates during the background screening process prior to procuring an Investigative Consumer Report (ICR). An Investigative Consumer Report is one that includes subjective opinions about the candidate, such as reference checks. It is a best practice to provide this Summary of Rights with the standard consumer report disclosures when requesting any type of background check, even when it does not meet the ICR definition. The Summary of Rights disclosure must also be sent to the candidate or employee along with the Pre-Adverse Action letter, when applicable.

As we ring in the new year, employers should be aware of some changes on the employment horizon. First, the total premium rate for the Washington State Paid Family and Medical Leave (PFML) program will increase to 0.8% as of January 1, 2023. Employers will pay 27.24% of the total premium, and employees will pay 72.76%. Businesses classified by the Employment Security Department as having fewer than 50 employees are not required to pay the employer portion of the premium. Find out more about the premium rate increase here.

The EEOC has released a new “Know Your Rights” poster, which can be accessed here.

The U.S. Citizenship and Immigration Services (USCIS) has released an Employer Alert instructing employers to continue to use the current Form I-9 past its expiration...

The Emergency Wildfire Smoke Rule expired on September 29, 2022, but LNI is working toward making the emergency rule permanent. In the meantime, LNI has issued guidance...

The Washington State minimum wage will see a steep increase in 2023 due to the 8.6% rate of inflation. https://www.lni.wa.gov/news-events/article/22-026

The Washington State minimum wage will see a steep increase in 2023, due to the 8.6% rate of inflation. https://www.lni.wa.gov/news-events/article/22-026

The Washington Department of Labor and Industries has announced emergency rules aimed at protecting employees working outside this summer.  The emergency rules enhance heat exposure obligations already in place and establish requirements related to wildfire smoke exposure. The full text of the emergency rules can be found here:  Heat and Wildfire Smoke.  The emergency rules will take effect June 15^th and last through September 29^th.    

Last month, a U.S. District Court in Georgia issued a nationwide stay, enjoining the federal government from enforcing its COVID-19 vaccine mandate for federal government contractors. That court recently issued another order explaining that it only enjoined the federal government with respect to requiring vaccinations for federal contractors.  The remaining requirements, including those related to masking, distancing and others were not affected by the original Georgia ruling.  The court declined, in its new order, to comment on whether contractors may voluntarily agree with the federal government to require vaccination.  If enforceable, such agreements could be binding on lower-tiered contractors. 

On January 27, 2021, Washington Governor Jay Inslee signed two bills into law that affect the Long Term Services and Supports Act (LTSS Act), also known as the WA Cares Fund.  The bills delay the collection of premiums until July 2023 and direct employers to refund premiums collected within 120 days.  Changes to the Act also allow workers born prior to 1968 to qualify for partial benefits and allows those who work in Washington, but live out of state, military spouses and registered domestic partners, workers on non-immigrant visas, and certain disabled veterans to opt-out of the program.

A United States District Court in Texas issued a preliminary injunction on Friday, blocking President Biden’s Executive Order mandating that all federal workers be vaccinated against COVID 19 or face termination from employment. The court emphasized that while it believed individuals should, in fact, get vaccinated, the mandate without Congressional input was an overreach of executive power. Enforcement of the mandate is now on hold nationwide, until the case is resolved on its merits. The Biden administration stated it will appeal the court’s order.

The Supreme Court, in a 6-3 decision on Thursday, blocked enforcement of the federal OSHA Emergency Temporary Standard (ETS) for large employers, which would have required workers to be vaccinated against COVID or wear masks and be tested weekly. The second mandate at issue, which applies to workers at hospitals and other health care facilities that participate in Medicare and Medicaid, was allowed to proceed.

Minimum Wage

Beginning January 1^st Washington’s state minimum wage has increased from $13.69 to $14.49 per hour. 

After several stops and starts, the OSHA ETS, mandating that employers with 100 or more employees implement a “vax or test” requirement for their workplaces, is back on – for now. On December 17, 2021, the 6^th Circuit Court of Appeals lifted a stay of the mandate, allowing the ETS to proceed. Immediately thereafter, the matter was appealed to the US Supreme Court and oral arguments are scheduled for January 7, 2022. In the meantime, however, the mandate remains in effect. To address the uncertainty created by the stay, OSHA is exercising enforcement discretion with respect to the compliance dates and will not issue citations for non-compliance with any requirements of the ETS before January 10 and will not issue citations for noncompliance with the standard’s testing requirements before February 9, so long as an employer is exercising reasonable, good faith efforts to come into compliance with the standard. You can find the OSHA “Litigation Update” and statement here: https://www.osha.gov/coronavirus/ets2

Governor Jay Inslee issued a press release on December 23^rd to address the confusion generated by last week’s announcement that premium collection under the WA Cares Fund Act was being postponed. Since the original announcement, employers have been wondering whether they should begin collecting premiums starting January 1, 2022.

It has been a legal whirlwind since OSHA issued its large employer emergency temporary standard (ETS), published in the Federal Register on November 5, 2021. As a refresher, the ETS required employees of large employers (those with 100 or more workers) to be either fully vaccinated by January 4, 2022, or submit to weekly testing and wear a mask. The ETS also contained provisions for verifying vaccine status, paid time off to get vaccinated, and recovery time for any post-vaccination side effects. Details of the OSHA ETS will be discussed in the next Webinar Wednesday.

Revisions to the Washington State Minimum Wage Act (MWA) have resulted in increases to the minimum salary level that must be earned by employees to be properly classified as exempt. The salary threshold for classifying Washington employees as exempt will increase again effective January 1, 2022. Salary threshold levels for employees (other than computer professionals) of small and large employers can be found on the New Salary Threshold Implementation Schedule published on the Washington State Department of Labor & Industries website. The salary threshold is revised each September for the following year based upon increases to the minimum wage which relies upon the Consumer Price Index. Employers should be on notice that salary projections for future years are based upon the estimated Consumer Price Index which may be updated. Accordingly, future salary threshold numbers should be verified by employers periodically.

Private large employers will soon be required to comply with the recently issued OSHA Emergency Temporary Standard (ETS), requiring businesses with 100 or more employees to ensure their employees are vaccinated by January 4, 2022. Employees who cannot be vaccinated due to a medical or religious exemption must submit to weekly testing and wear face coverings while indoors at the workplace.

Washington Proclamation 21-14 related to COVID-19 vaccination requirement for certain health care providers, state workers, and workers was been amended (Proclamation 21-14.1) late Friday to include those working in educational settings as well as provide additional detail regarding exemptions and contractors.