Businesses preparing to bring remote workers back to the City of
Seattle should take time to ensure their employment practices
comply with both state and local labor ordinances. This was driven
home by a recent $250,000 settlement reported by the Seattle Office
of Labor Standards (OLS) involving alleged violations of rules
governing travel time, meal periods, and rest breaks. This is a
good reminder that OLS has broad authority to enforce Washington
State's employment laws along with its own labor ordinances. So
that your organization is prepared for your workers to return to
the City, we have prepared a refresher survey of Seattle's
labor ordinances, along with tips for compliance.
Seattle's Independent Contractor Protections Ordinance becomes effective on September 1, 2022.
- This ordinance requires hiring entities to provide independent
contractors performing work in Seattle with pre-contract
disclosures that describe the work, the location of the work, the
compensation structure, and pay schedule.
- At the time of payment, hiring entities must disclose much of
the same information required by the pre-contract disclosures, plus
the gross payment, specific deductions, and net payment after
deductions.
- And finally, hiring entities must provide timely payment as
required by the contract or the pre-contract disclosure, or within
30 days of contract performance.
Seattle's Wage Theft Ordinance, which became effective on April 1, 2015, imposes many wage notice requirements.
- This ordinance requires payment for all compensation owed for
work performed within Seattle city limits on a regular identified
payday, at least once every month.
- It further requires written notice at the time of hire and when
it changes, including pay rates, pay basis, paydays and tip
policies, and other employer information.
- Because the ordinance requires employers to pay employees
"all compensation owed" by reason of employment, OLS has
authority to enforce Washington State wage and hour laws and
regulations.
- Additionally, the Ordinance defines "compensation" to
include "reimbursement for employment expenses," which is
further defined to mean "all necessary expenditures or losses
incurred by the employee in direct consequence of the discharge of
the employee's duties, or of the employee's obedience to
the directions of the employer."
Seattle's Paid Sick and Safe Time Ordinance, which became effective in 2012, establishes minimum standards for employers to provide paid sick and safe time (PSST) to employees who work within Seattle city limits.
- Importantly, Seattle's PSST Ordinance covers most employees
working in Seattle, regardless of overtime eligibility, meaning
that hourly non-exempt employees and salaried exempt employees are
entitled to paid leave. In addition, employees who work
occasionally in Seattle are covered, implicating remote workers
within city limits.
- In contrast, Washington State's Paid Sick Leave Act only
covers non-exempt employees who are eligible for overtime
compensation under the Washington Minimum Wage Act.
- Seattle's PSST Ordinance also classifies employers
depending on their size into tiers, with higher accrual and
carryover rates for larger employers.
- In contrast, Washington's law imposes a single accrual and
carryover rate regardless of employer size.
Seattle's Minimum Wage Ordinance, which became effective in 2015, establishes minimum wage standards for employees working within Seattle city limits.
- This Ordinance establishes a schedule setting different
requirements and timelines for implementing the minimum wage based
on the employer's size: (1) large employers are those with 501
or more employees; and (2) small employers are those with 500 or
fewer employees.
- Commencing on January 1, 2022, the minimum wage for large or
small employers in Seattle is $17.27 per hour. However, small
employers have two options: (1) pay an hourly minimum compensation
of $17.27 per hour; or (2) pay an hourly minimum wage of $15.75 per
hour and make up the balance with employee tips and/or payments
toward an employee's qualifying medical benefits plan.
- Seattle's OLS announces the next year's minimum wage
during the Fall of each year, so employers must remain vigilant to
ensure they are remaining compliant.
What Else Should Employers With Seattle Workers Know?
- Seattle's Commuter Benefits
Ordinance, which became effective on January 1, 2020,
requires employers to provide employees with the opportunity to
make a monthly pre-tax payroll deduction for transit or vanpool
expenses.
- Employers who employ Seattle-based hotel employees and
employees with certain relationships to hotels must comply with the
Hotel Employees Safety Protection Ordinance, the
Protecting Hotel Employees from Injury Ordinance,
and the Improving Access to Medical Care for Hotel
Employees Ordinance, all of which became effective on July
1, 2020.
- Domestic workers working in Seattle city limits are entitled to
labor protections under the Domestic Workers
Ordinance that include minimum wage requirements, meal
periods and rest breaks, days of rest for live-in workers, and
protection from retaliation, among other things.
- Gig workers of "Food Delivery Network Companies" and
"Transportation Network Companies" with 250 or more gig
workers worldwide are eligible for paid sick and safe time and
premium pay during the COVID-19 civil emergency, under the
COVID-19 Gig Worker Protection Ordinance. This
followed Seattle's earlier Transportation Network
Company Legislation which regulates transportation network
companies and became effective on November 26, 2019.
- Grocery businesses in Seattle are required to pay hazard pay to
employees working in retail stores during the COVID-19 civil
emergency under the Grocery Employee Hazard Pay
Ordinance.
- Seattle's Secure Scheduling
Ordinance applies to hourly employees at retail and food
services establishments with 500 or more employees worldwide. Full
service restaurants must have 40 or more full-service locations
worldwide. While certain premium pay for schedule changes were
suspended during COVID-19, this could change if and when the
COVID-19 emergency is declared over.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
