Employer Alerts & Employment Law Updates

As discussed in our recent Member Alert (here), several amendments to Washington’s Fair Chance Act (FCA) took effect on July 1st for employers with 15 or more employees. These amendments will apply to employers with fewer than 15 employees starting January 1, 2027.

The Fair Chance Act, passed by the Washington legislature in 2018, created new rules related to the collection and use of criminal history in the hiring process. The law, also known as the “Ban the Box” law, prohibited employers from asking job applicants about their criminal history or doing background checks until the employer had determined the applicant was “otherwise qualified” for the position. The state law also prohibited employers from advertising job openings in a way that excluded people with criminal records from applying, such as “no felons,” “no criminal background,” or other similar messages.

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.

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. 

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 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