WASHINGTON: Governor signs 2024 bills – Technologist

The Washington legislature’s regular session adjourned on March 7, 2024, and Governor Jay Inslee has signed several employment-related bills into law:

SHB 1905 (pay equity): Expands Washington’s existing pay equity law beyond gender to also include membership in a long list of protected classes: age, sex, marital status, sexual orientation, race, creed, color, national origin, citizenship or immigration status, honorably discharged veteran or military status, or the presence of any sensory, mental, or physical disability or the use of a trained dog guide or service animal by a person with a disability. Effective July 1, 2025.

Note from Vigilant: We will update our Legal Guide, Equal Pay: Avoid the Pitfalls with this change.

ESSB 5778 (employer communications on religious or political issues): The “Employee Free Choice Act” prohibits employers from requiring workers to attend employer-sponsored meetings, listen to verbal communications, or view electronic or other communications when the primary purpose is to share the employer’s opinion on religious or political matters. Threatening or imposing any negative consequences for failure to do so is similarly forbidden. The bill broadly defines “political matters” to include “matters relating to elections for political office, political parties, proposals to change legislation, proposals to change regulations, and the decision to join or support any political party or political, civic, community, fraternal, or labor association or organization.” Effective June 6, 2024.

Note from Vigilant: It’s possible this law could be challenged because the National Labor Relations Act (NLRA) generally gives employers the right to hold “captive audience” speeches to communicate their point of view during union organizing drives. We’ll keep members informed of any substantive developments.

ESSB 5793 (paid sick leave expansion): Expands the definition of family member under Washington Paid Sick Leave to match the definition in Washington Paid Family and Medical Leave (WPFML). The revised list of family members for whom an employee may take time off to provide care under Washington Paid Sick Leave now includes the employee’s child’s spouse and “any individual who regularly resides in the employee’s home or where the relationship creates an expectation that the employee care for the person, and that individual depends on the employee for care.” An employee’s registered domestic partner is already covered under current law, but the new bill defines anyone’s “spouse” to include a husband, wife, or state registered domestic partner. The bill also expands the authorized reasons for taking Washington Paid Sick Leave to include situations when an employee’s child’s school or place of care has been closed after the declaration of an emergency by a local or state government or agency, or by the federal government. Effective January 1, 2025.

Note from Vigilant: “Emergency” isn’t defined in the bill, but it would be reasonable to assume it includes emergency declarations related to events such as flooding, extreme weather, or wildfire smoke. Also, if you have any employees working in the City of Tacoma, the Tacoma Paid Sick Leave Ordinance says that if the state’s reasons for leave are more generous, the state law applies.

SB 5979 (paid sick leave clarifications for construction industry): Clarifies the definition of construction workers who are entitled to receive a payout of their accrued but unused sick pay if they terminate employment before reaching their 90-day eligibility period for Washington Paid Sick Leave. A construction worker is defined as “a worker who performed service, maintenance, or construction work on a jobsite, in the field or in a fabrication shop using the tools of the worker’s trade or craft.” This statutory language overrides existing paid sick leave regulations (WAC 296-128-600(3)) that granted the payout right to employees who aren’t directly engaged in the construction work itself, such as nonexempt administrative staff of a construction company. Effective March 13, 2024.

Note from Vigilant: This payout requirement only applies to employers in the construction industry (North American Industry Classification System (NAICS) code 23), but not to employers in residential building construction (NAICS code 2361). Construction industry employers with a collective bargaining agreement continue to be exempt from Washington Paid Sick Leave as long as they qualify for an exemption under RCW 49.46.180.

ESSB 6069 (mandatory employer-facilitated retirement savings): Establishes Washington Saves, which will require most employers that don’t offer a retirement plan to automatically enroll workers in a state-administered retirement savings plan. Covered employers will deduct a percentage of workers’ paychecks and send it to the state for deposit into individual retirement accounts (IRAs). A governing board will set default rates for contribution percentages (3 to 7 percent) and automatic escalation (up to 1 percent per year). The maximum contribution based on the default escalation will be 10 percent. Workers may modify their contribution rates or opt out of the program at any time. The accounts are portable, so workers may continue contributing even when they change jobs. Employers will have to register with the state, promptly forward employees’ payroll deductions, and provide notices to employees. The bill takes effect on June 6, 2024, but it will take time to get the program up and running. The program is scheduled to launch by July 1, 2027, although the governing board is authorized to stagger implementation in phases after that date.

Employers aren’t allowed to contribute to Washington Saves. However, the existing Washington small business retirement marketplace will still offer voluntary options for employer contributions to retirement funds. The bill modifies the marketplace by removing references to payroll deductions for individual IRAs, since those instead will be offered through Washington Saves.

Note from Vigilant: This legislation follows similar programs that are already in place in California (CalSavers) and Oregon (OregonSaves). As exclusively employment attorneys, Vigilant Law Group won’t be able to advise members on the ins and outs of this law, so be sure to work with benefits counsel or related vendors as implementation approaches in 2027.

Tips: These new laws will require employers to take specific actions in a variety of areas. Talk with your Vigilant Law Group employment attorney if you need a referral for an equal pay compensation analysis. If you are considering holding employee meetings or sharing print or electronic messages with employees about religious topics, political issues, or union organizing, contact your Vigilant Law Group employment attorney for advice first. Update your paid sick leave policy by January 1, 2025, with the expanded covered family members and reasons for leave. We will be updating our Model Policy, Washington Paid Sick Leave Policy with the changes. If you’re in the construction industry and covered by Washington Paid Sick Leave, ensure you’re properly paying out unused sick leave for construction workers who separate employment before their 90^th day. And finally, watch your email inbox for updates from the state of Washington on the rollout of the new Washington Saves program – they will be reaching out to employers when their systems are in place to begin accepting contributions.