Welcome to a useful resource for understanding overtime laws in Washington State. The dedicated attorneys at Rekhi & Wolk, P.S., prepared this guide to provide you with an overview of the laws and regulations concerning overtime. Our law firm is dedicated to ensuring you know your rights and obligations as either a Washington State employee or an employer in 2024.
Introduction to Washington State Overtime Laws
Washington State has specific laws governing overtime pay to protect employees and ensure fair compensation for hours worked beyond the standard workweek. These laws are designed to prevent exploitation and guarantee that employees receive appropriate pay for their work. In this section, we will introduce you to the key aspects of these laws, including the fundamental principles that underpin them.
Understanding the Basics of Overtime
Paid overtime is a critical component of wage and hour law. It is designed to compensate employees for working beyond their regular hours. In Washington State, the standard workweek is 40 hours, and any hours worked beyond this threshold by employees who are not exempt from the state’s overtime requirements must be compensated at a higher rate, i.e., one and a half times the regular pay rate.
Overtime Eligibility in Washington State
Not all employees are eligible for overtime pay under Washington State law. Generally, only employees who earn less than $67,724.80 per year and are paid a fixed amount every paycheck are eligible for overtime. However, there are many exceptions to this based on the type of work performed, the industry, and certain other specific exemptions described by state regulations.
Employees Entitled to Overtime Compensation
Under Washington State law hourly workers, piece-rate workers, and certain commission-based and salaried employees who do not meet specific exemption criteria are entitled to overtime compensation when they work more than forty hours per week. Exemptions are generally based on job duties, salary level, and other factors identified by the Washington Minimum Wage Act (and federally by the Fair Labor Standards Act [FLSA]).
Employees Typically Not Entitled to Overtime Compensation
While many employees in Washington State are entitled to overtime pay, certain types of employees are exempt.
Employees who typically do not qualify for overtime compensation include many “white-collar” workers who are paid a salary (of at least $67,724.80), and categorized as executive, administrative, and professional roles, as defined by the Washington Minimum Wage Act (generally taken from the FLSA). Additionally, certain agricultural employees, “casual laborers,” those who sleep at their place of employment, non-profit volunteers, and many others are not entitled to overtime under Washington State law. Washington State Labor and Industries (LNI) has issued helpful guidance that identify and describe the various exemptions.
Special Overtime Rules for Certain Professions
Certain professions in Washington State are subject to unique overtime rules. Specifically, healthcare workers, teachers, public safety personnel, and employees in the transportation industry often have specific regulations governing their overtime pay. These rules may include different thresholds for overtime eligibility and varying pay rates. See the above guidance from LNI for more information.
Washington State Overtime Exemptions
Overtime exemptions in Washington State can vary based on the size of the employer as described below. Additionally, salaried employees may be exempt from overtime depending on the nature of their jobs. Understanding these exemptions can help employers apply the correct standards and also ensures employees know their rights. Again, please review LNI guidance or contact us.
For Small Employers (1-50 Employees)
Small employers, those with 1 to 50 employees, have different overtime exemption criteria as compared to larger businesses. Specifically, since July 2020, employees who work for small employers will have had a lower minimum salary threshold as opposed to larger employers — meaning that if the employer pays less than the prescribed minimum salary, the employee is entitled to overtime compensation for all work over 40 hours per workweek. This is because small employers typically have fewer employees and smaller budgets. LNI has set forth specific guidance related to the salary threshold.
For Large Employers (50+ Employees)
Since July 2020, large employers, defined as those with more than 50 employees, have been subject to a higher salary threshold than smaller employers. These rules ensured that a broader range of employees are protected and fairly compensated for overtime work. Beginning in 2025, people who work for large employers are eligible for overtime if they earn less than $78,249.60. See the above linked LNI guidance for more details.
Executive, Administrative, & Professional (EAP) Employees
Executive, Administrative, and Professional (EAP) employees are often exempt from overtime pay under Washington overtime laws. These exemptions are based on specific criteria related to an employee’s duties and salary. To qualify as an exempt EAP employee, individuals must perform high-level tasks and meet the minimum salary threshold. LNI provides a helpful overview of the requirements for this exemption.
Calculating Overtime Pay
Calculating overtime pay accurately is crucial for compliance with the Washington Minimum Wage Act. Employees who work more than 40 hours in a workweek are typically entitled to an overtime pay rate of one and a half times their regular rate of pay. The regular rate of pay can include commissions and non-discretionary bonuses paid. For more information, check out this LNI guidance. Additionally, employees must be paid an hourly wage that meets or exceeds Washington State’s minimum wage of $16.28 per hour.
Key Changes in Washing State Overtime Rules for 2024
Understanding the key changes in Washington State’s overtime rules for 2024 is essential for both employers and employees. These updates may impact eligibility, compensation, and compliance requirements. This section highlights the most significant changes, ensuring you stay informed and prepared.
Increased Salary Threshold
One of the changes in 2024 is the increased salary threshold for overtime exemptions. Employees must now earn a higher minimum salary to be exempt from overtime. This adjustment aims to ensure more workers receive fair compensation for overtime work.
Emphasizing Job Duties Tests
In 2024, Washington State revised the job duties tests that determine overtime exemption status. The new test evaluates an employee’s actual duties.
Alternatives to Overtime Pay in Washington
Washington State offers alternatives to traditional overtime pay, providing flexibility for both employers and employees. These alternatives can include compensatory time and flexible scheduling arrangements. Understanding these options can help organizations manage labor costs while still providing fair compensation for extra work.
Compensatory Time
Compensatory time, or “comp time,” is an alternative to overtime pay where employees earn paid time off instead of additional wages for overtime hours worked. This option is available only to public employees and can provide valuable flexibility for both employees and employers. Additionally, comp time is provided at the same rate as overtime.
Flexible Work Schedules
Flexible work schedules offer an alternative approach to managing work hours, providing both employees and employers with greater flexibility. These schedules can include arrangements such as compressed workweeks, flextime, and job sharing. In Washington State, flexible work schedules must still comply with overtime regulations ensuring employees receive proper compensation for hours worked beyond the standard 40-hour workweek.
Employee Rights & Protections
Employee rights and protections under Washington State overtime laws are designed to ensure fair treatment and compensation for all workers. These rights include protections against retaliation for claiming overtime pay. Additionally, employees have the right to file complaints or lawsuits for unpaid overtime.
Employer Compliance Strategies
Compliance with Washington State overtime laws is crucial for employers to avoid legal issues and maintain fair workplace practices. Effective strategies include regularly reviewing employee classifications, maintaining accurate time records, and providing training on overtime policies. These practices ensure employers remain compliant with overtime regulations and other legal obligations.
Filing an Overtime Complaint
If you believe you have not been properly compensated for overtime work, filing a complaint is an option to seek redress. Washington State LNI provides a clear process for employees to file complaints and pursue their unpaid overtime claims. You can still file an overtime complaint even if you are no longer employed by the employer who violated your rights.
How to File a Worker’s Rights Complaint
Filing a worker’s rights complaint in Washington State involves several steps. First, gather all relevant information, such as pay stubs, time records, and any communications with your employer regarding overtime. After you collect any relevant evidence, you must fill out and file a workers rights complaint form with the Washington State LNI.
Statute of Limitations for Unpaid Overtime Claims
The statute of limitations for unpaid overtime claims in Washington State is typically three years from the date the wages were due. This means that employees have up to three years to file a claim for unpaid overtime. Understanding this timeline is crucial for ensuring your rights are protected and your claim is valid.
Penalties for Not Providing Overtime Pay
Employers who fail to provide overtime pay as required by Washington State law may face significant penalties. This can include back pay for the unpaid overtime and a fine of $1,000 for each violation. Additionally, employees can pursue lawsuits against their employers. If any employee can establish that the employer “willfully” failed to pay overtime as required, then the employer may be liable for exemplary damages of twice the unpaid wages.
Impact of Remote Work on Overtime Regulations
The rise of remote work has introduced new challenges and considerations for overtime regulations. In Washington State, remote employees are still entitled to overtime pay for hours worked beyond the standard 40-hour workweek. Employers and remote employees should take steps to ensure time is properly recorded.
FAQs About Washington State Overtime Laws
The laws surrounding employment issues and overtime are complex and confusing. Worse yet, employers often take steps to ensure their employees lack knowledge regarding their rights. The lawyers at Rekhi & Wolk, P.S., have prepared this section to address frequently asked questions.
What is the minimum wage in the state of Washington?
As of 2024, the minimum wage in Washington State is set at $16.28 per hour. This rate is subject to annual adjustments based on inflation and other economic factors. Some municipalities such as Seattle have local ordinances with higher minimum wage requirements. LNI has a webpage identifying the municipalities and their current minimum wage rates.
Is mandatory overtime legal in Washington?
Yes, mandatory overtime is legal in Washington State. Employers can require employees to work overtime, but they must compensate them at the appropriate overtime rate for any hours worked beyond 40 in a workweek. However, healthcare facilities cannot be made to work excessive hours.
Also, it is important to note that if you are paid a salary your employer cannot require you to work a certain number of hours and discipline you or dock your pay if you don’t meet that hourly quota.
Who is exempt from overtime pay?
Certain employees are exempt from overtime pay under Washington State law. These exemptions typically apply to executive, administrative, and professional employees who meet specific criteria related to their job duties and salary levels. Additionally, some sales employees, independent contractors, and casual employees may also be exempt. Please see the LNI guidance referenced above or give us a call.