49.46 - Minimum wage requirements and labor standards.

49.46.005 - Declaration of necessity and police power—Conformity to modern fair labor standards.

  1. Whereas the establishment of a minimum wage for employees is a subject of vital and imminent concern to the people of this state and requires appropriate action by the legislature to establish minimum standards of employment within the state of Washington, therefore the legislature declares that in its considered judgment the health, safety and the general welfare of the citizens of this state require the enactment of this measure, and exercising its police power, the legislature endeavors by this chapter to establish a minimum wage for employees of this state to encourage employment opportunities within the state. The provisions of this chapter are enacted in the exercise of the police power of the state for the purpose of protecting the immediate and future health, safety and welfare of the people of this state.

  2. Since the enactment of Washington's original minimum wage act, the legislature and the people have repeatedly amended this chapter to establish and enforce modern fair labor standards, including periodically updating the minimum wage and establishing the forty-hour workweek and the right to overtime pay.

  3. The people hereby amend this chapter to conform to modern fair labor standards by establishing a fair minimum wage and the right to paid sick leave to protect public health and allow workers to care for the health of themselves and their families.

[ 2017 c 2 § 2 (Initiative Measure No. 1433, approved November 8, 2016); 1961 ex.s. c 18 § 1; ]

49.46.010 - Definitions.

As used in this chapter:

  1. "Director" means the director of labor and industries;

  2. "Employ" includes to permit to work;

  3. "Employee" includes any individual employed by an employer but shall not include:

    1. Any individual (i) employed as a hand harvest laborer and paid on a piece rate basis in an operation which has been, and is generally and customarily recognized as having been, paid on a piece rate basis in the region of employment; (ii) who commutes daily from his or her permanent residence to the farm on which he or she is employed; and (iii) who has been employed in agriculture less than thirteen weeks during the preceding calendar year;

    2. Any individual employed in casual labor in or about a private home, unless performed in the course of the employer's trade, business, or profession;

    3. Any individual employed in a bona fide executive, administrative, or professional capacity or in the capacity of outside salesperson as those terms are defined and delimited by rules of the director. However, those terms shall be defined and delimited by the human resources director pursuant to chapter 41.06 RCW for employees employed under the director of personnel's jurisdiction;

    4. Any individual engaged in the activities of an educational, charitable, religious, state or local governmental body or agency, or nonprofit organization where the employer-employee relationship does not in fact exist or where the services are rendered to such organizations gratuitously. If the individual receives reimbursement in lieu of compensation for normally incurred out-of-pocket expenses or receives a nominal amount of compensation per unit of voluntary service rendered, an employer-employee relationship is deemed not to exist for the purpose of this section or for purposes of membership or qualification in any state, local government, or publicly supported retirement system other than that provided under chapter 41.24 RCW;

    5. Any individual employed full time by any state or local governmental body or agency who provides voluntary services but only with regard to the provision of the voluntary services. The voluntary services and any compensation therefor shall not affect or add to qualification, entitlement, or benefit rights under any state, local government, or publicly supported retirement system other than that provided under chapter 41.24 RCW;

    6. Any newspaper vendor, carrier, or delivery person selling or distributing newspapers on the street, to offices, to businesses, or from house to house and any freelance news correspondent or "stringer" who, using his or her own equipment, chooses to submit material for publication for free or a fee when such material is published;

    7. Any carrier subject to regulation by Part 1 of the Interstate Commerce Act;

    8. Any individual engaged in forest protection and fire prevention activities;

    9. Any individual employed by any charitable institution charged with child care responsibilities engaged primarily in the development of character or citizenship or promoting health or physical fitness or providing or sponsoring recreational opportunities or facilities for young people or members of the armed forces of the United States;

    10. Any individual whose duties require that he or she reside or sleep at the place of his or her employment or who otherwise spends a substantial portion of his or her work time subject to call, and not engaged in the performance of active duties;

    11. Any resident, inmate, or patient of a state, county, or municipal correctional, detention, treatment or rehabilitative institution;

    12. Any individual who holds a public elective or appointive office of the state, any county, city, town, municipal corporation or quasi municipal corporation, political subdivision, or any instrumentality thereof, or any employee of the state legislature;

    13. All vessel operating crews of the Washington state ferries operated by the department of transportation;

    14. Any individual employed as a seaman on a vessel other than an American vessel;

    15. Until December 31, 2025, any farm intern providing his or her services to a small farm which has a special certificate issued under RCW 49.12.471;

    16. An individual who is at least sixteen years old but under twenty-one years old, in his or her capacity as a player for a junior ice hockey team that is a member of a regional, national, or international league and that contracts with an arena owned, operated, or managed by a public facilities district created under chapter 36.100 RCW;

  4. "Employer" includes any individual, partnership, association, corporation, business trust, or any person or group of persons acting directly or indirectly in the interest of an employer in relation to an employee;

  5. "Occupation" means any occupation, service, trade, business, industry, or branch or group of industries or employment or class of employment in which employees are gainfully employed;

  6. "Retail or service establishment" means an establishment seventy-five percent of whose annual dollar volume of sales of goods or services, or both, is not for resale and is recognized as retail sales or services in the particular industry;

  7. "Wage" means compensation due to an employee by reason of employment, payable in legal tender of the United States or checks on banks convertible into cash on demand at full face value, subject to such deductions, charges, or allowances as may be permitted by rules of the director.

[ 2020 c 212 § 3; 2015 c 299 § 3; prior: (2014 c 131 § 2; 2013 c 141 § 1; prior: 2011 1st sp.s. c 43 § 462; 2011 1st sp.s. c 43 § 461; prior: (2010 c 160 § 2; 2010 c 8 § 12040; 2002 c 354 § 231; 1997 c 203 § 3; 1993 c 281 § 56; 1989 c 1 § 1 (Initiative Measure No. 518, approved November 8, 1988); 1984 c 7 § 364; 1977 ex.s. c 69 § 1; 1975 1st ex.s. c 289 § 1; 1974 ex.s. c 107 § 1; 1961 ex.s. c 18 § 2; 1959 c 294 § 1; ]

49.46.020 - Minimum hourly wage—Paid sick leave.

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    1. Beginning January 1, 2017, and until January 1, 2018, every employer shall pay to each of his or her employees who has reached the age of eighteen years wages at a rate of not less than eleven dollars per hour.

    2. Beginning January 1, 2018, and until January 1, 2019, every employer shall pay to each of his or her employees who has reached the age of eighteen years wages at a rate of not less than eleven dollars and fifty cents per hour.

    3. Beginning January 1, 2019, and until January 1, 2020, every employer shall pay to each of his or her employees who has reached the age of eighteen years wages at a rate of not less than twelve dollars per hour.

    4. Beginning January 1, 2020, and until January 1, 2021, every employer shall pay to each of his or her employees who has reached the age of eighteen years wages at a rate of not less than thirteen dollars and fifty cents per hour.

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    1. Beginning on January 1, 2021, and each following January 1st as set forth under (b) of this subsection, every employer shall pay to each of his or her employees who has reached the age of eighteen years wages at a rate of not less than the amount established under (b) of this subsection.

    2. On September 30, 2020, and on each following September 30th, the department of labor and industries shall calculate an adjusted minimum wage rate to maintain employee purchasing power by increasing the current year's minimum wage rate by the rate of inflation. The adjusted minimum wage rate shall be calculated to the nearest cent using the consumer price index for urban wage earners and clerical workers, CPI-W, or a successor index, for the twelve months prior to each September 1st as calculated by the United States department of labor. Each adjusted minimum wage rate calculated under this subsection (2)(b) takes effect on the following January 1st.

  3. An employer must pay to its employees: (a) All tips and gratuities; and (b) all service charges as defined under RCW 49.46.160 except those that, pursuant to RCW 49.46.160, are itemized as not being payable to the employee or employees servicing the customer. Tips and service charges paid to an employee are in addition to, and may not count towards, the employee's hourly minimum wage.

  4. Beginning January 1, 2018, except as provided in RCW 49.46.180, every employer must provide to each of its employees paid sick leave as provided in RCW 49.46.200 and 49.46.210.

  5. The director shall by regulation establish the minimum wage for employees under the age of eighteen years.

[ 2019 c 236 § 2; 2017 c 2 § 3 (Initiative Measure No. 1433, approved November 8, 2016); 1999 c 1 § 1 (Initiative Measure No. 688, approved November 3, 1998); 1993 c 309 § 1; 1989 c 1 § 2 (Initiative Measure No. 518, approved November 8, 1988); 1975 1st ex.s. c 289 § 2; 1973 2nd ex.s. c 9 § 1; 1967 ex.s. c 80 § 1; 1961 ex.s. c 18 § 3; 1959 c 294 § 2; ]

49.46.040 - Investigation—Services of federal agencies—Employer's records—Industrial homework.

  1. The director or his or her designated representatives may investigate and gather data regarding the wages, hours, and other conditions and practices of employment in any industry subject to this chapter, and may enter and inspect such places and such records (and make such transcriptions thereof), question such employees, and investigate such facts, conditions, practices, or matters as he or she may deem necessary or appropriate to determine whether any person has violated any provision of this chapter, or which may aid in the enforcement of the provisions of this chapter.

  2. With the consent and cooperation of federal agencies charged with the administration of federal labor laws, the director may, for the purpose of carrying out his or her functions and duties under this chapter, utilize the services of federal agencies and their employees and, notwithstanding any other provision of law, may reimburse such federal agencies and their employees for services rendered for such purposes.

  3. Every employer subject to any provision of this chapter or of any order issued under this chapter shall make, keep, and preserve such records of the persons employed by him or her and of the wages, hours, and other conditions and practices of employment maintained by him or her, and shall preserve such records for such periods of time, and shall make reports therefrom to the director as he or she shall prescribe by regulation as necessary or appropriate for the enforcement of the provisions of this chapter or the regulations thereunder.

  4. The director is authorized to make such regulations regulating, restricting, or prohibiting industrial homework as are necessary or appropriate to prevent the circumvention or evasion of and to safeguard the minimum wage rate prescribed in this chapter, and all existing regulations of the director relating to industrial homework are hereby continued in full force and effect.

[ 2010 c 8 § 12041; 1959 c 294 § 4; ]

49.46.060 - Exceptions for learners, apprentices, messengers, persons with disabilities.

Subject to RCW 49.46.170, the director, to the extent necessary in order to prevent curtailment of opportunities for employment, shall by regulations provide for (1) the employment of learners, of apprentices, and of messengers employed primarily in delivering letters and messages, under special certificates issued pursuant to regulations of the director, at such wages lower than the minimum wage applicable under RCW 49.46.020 and subject to such limitations as to time, number, proportion, and length of service as the director shall prescribe, and (2) the employment of individuals whose earning capacity is impaired by a disability, under special certificates issued by the director, at such wages lower than the minimum wage applicable under RCW 49.46.020 and for such period as shall be fixed in such certificates.

[ 2021 c 97 § 2; 1959 c 294 § 6; ]

49.46.065 - Individual volunteering labor to state or local governmental agency—Amount reimbursed for expenses or received as nominal compensation not deemed salary for rendering services or affecting public retirement rights.

When an individual volunteers his or her labor to a state or local governmental body or agency and receives pursuant to a statute or policy or an ordinance or resolution adopted by or applicable to the state or local governmental body or agency reimbursement in lieu of compensation at a nominal rate for normally incurred expenses or receives a nominal amount of compensation per unit of voluntary service rendered such reimbursement or compensation shall not be deemed a salary for the rendering of services or for purposes of granting, affecting or adding to any qualification, entitlement or benefit rights under any state, local government or publicly supported retirement system other than that provided under chapter 41.24 RCW.

[ 1977 ex.s. c 69 § 2; ]

49.46.070 - Records of employer—Contents—Inspection—Sworn statement.

Every employer subject to any provision of this chapter or of any regulation issued under this chapter shall make, and keep in or about the premises wherein any employee is employed, a record of the name, address, and occupation of each of his or her employees, the rate of pay, and the amount paid each pay period to each such employee, the hours worked each day and each workweek by such employee, and such other information as the director shall prescribe by regulation as necessary or appropriate for the enforcement of the provisions of this chapter or of the regulations thereunder. Such records shall be open for inspection or transcription by the director or his or her authorized representative at any reasonable time. Every such employer shall furnish to the director or to his or her authorized representative on demand a sworn statement of such records and information upon forms prescribed or approved by the director.

[ 2010 c 8 § 12042; 1959 c 294 § 7; ]

49.46.080 - New or modified regulations—Judicial review—Stay.

  1. As new regulations or changes or modification of previously established regulations are proposed, the director shall call a public hearing for the purpose of the consideration and establishment of such regulations following the procedures used in the promulgation of standards of safety under chapter 49.17 RCW.

  2. Any interested party may obtain a review of the director's findings and order in the superior court of county of petitioners' residence by filing in such court within sixty days after the date of publication of such regulation a written petition praying that the regulation be modified or set aside. A copy of such petition shall be served upon the director. The finding of facts, if supported by evidence, shall be conclusive upon the court. The court shall determine whether the regulation is in accordance with law. If the court determines that such regulation is not in accordance with law, it shall remand the case to the director with directions to modify or revoke such regulation. If application is made to the court for leave to adduce additional evidence by any aggrieved party, such party shall show to the satisfaction of the court that such additional evidence is material, and that there were reasonable grounds for the failure to adduce such evidence before the director. If the court finds that such evidence is material and that reasonable grounds exist for failure of the aggrieved party to adduce such evidence in prior proceedings, the court may remand the case to the director with directions that such additional evidence be taken before the director. The director may modify the findings and conclusions, in whole or in part, by reason of such additional evidence.

  3. The judgment and decree of the court shall be final except that it shall be subject to review by the supreme court or the court of appeals as in other civil cases.

  4. The proceedings under this section shall not, unless specifically ordered by the court, operate as a stay of an administrative regulation issued under the provisions of this chapter. The court shall not grant any stay of an administrative regulation unless the person complaining of such regulation shall file in the court an undertaking with a surety or sureties satisfactory to the court for the payment to the employees affected by the regulation, in the event such regulation is affirmed, of the amount by which the compensation such employees are entitled to receive under the regulation exceeds the compensation they actually receive while such stay is in effect.

[ 1983 c 3 § 157; 1971 c 81 § 117; 1959 c 294 § 8; ]

49.46.090 - Payment of amounts less than chapter requirements—Employer's liability—Assignment of claim.

  1. Any employer who pays any employee less than the amounts to which such employee is entitled under or by virtue of this chapter, shall be liable to such employee affected for the full amount due to such employee under this chapter, less any amount actually paid to such employee by the employer, and for costs and such reasonable attorney's fees as may be allowed by the court. Any agreement between such employee and the employer allowing the employee to receive less than what is due under this chapter shall be no defense to such action.

  2. At the written request of any employee paid less than the amounts to which he or she is entitled under or by virtue of this chapter, the director may take an assignment under this chapter or as provided in RCW 49.48.040 of such claim in trust for the assigning employee and may bring any legal action necessary to collect such claim, and the employer shall be required to pay the costs and such reasonable attorney's fees as may be allowed by the court.

[ 2017 c 2 § 7 (Initiative Measure No. 1433, approved November 8, 2016); 2010 c 8 § 12043; 1959 c 294 § 9; ]

49.46.100 - Prohibited acts of employer—Penalty.

  1. Any employer who hinders or delays the director or his or her authorized representatives in the performance of his or her duties in the enforcement of this chapter, or refuses to admit the director or his or her authorized representatives to any place of employment, or fails to make, keep, and preserve any records as required under the provisions of this chapter, or falsifies any such record, or refuses to make any record accessible to the director or his or her authorized representatives upon demand, or refuses to furnish a sworn statement of such record or any other information required for the proper enforcement of this chapter to the director or his or her authorized representatives upon demand, or pays or agrees to pay an employee less than the employee is entitled to under this chapter, or otherwise violates any provision of this chapter or of any regulation issued under this chapter shall be deemed in violation of this chapter and shall, upon conviction therefor, be guilty of a gross misdemeanor.

  2. Any employer who discharges or in any other manner discriminates against any employee because such employee has made any complaint to his or her employer, to the director, or his or her authorized representatives that he or she has not been paid wages in accordance with the provisions of this chapter, or that the employer has violated any provision of this chapter, or because such employee has caused to be instituted or is about to cause to be instituted any proceeding under or related to this chapter, or because such employee has testified or is about to testify in any such proceeding shall be deemed in violation of this chapter and shall, upon conviction therefor, be guilty of a gross misdemeanor.

[ 2017 c 2 § 8 (Initiative Measure No. 1433, approved November 8, 2016); 2010 c 8 § 12044; 1959 c 294 § 10; ]

49.46.110 - Collective bargaining not impaired.

Nothing in this chapter shall be deemed to interfere with, impede, or in any way diminish the right of employees to bargain collectively with their employers through representatives of their own choosing in order to establish wages or other conditions of work in excess of the applicable minimum under the provisions of this chapter.

[ 1959 c 294 § 11; ]

49.46.120 - Chapter establishes minimum standards and is supplementary to other laws—More favorable standards unaffected.

This chapter establishes minimum standards for wages, paid sick leave, and working conditions of all employees in this state, unless exempted herefrom, and is in addition to and supplementary to any other federal, state, or local law or ordinance, or any rule or regulation issued thereunder. Any standards relating to wages, hours, paid sick leave, or other working conditions established by any applicable federal, state, or local law or ordinance, or any rule or regulation issued thereunder, which are more favorable to employees than the minimum standards applicable under this chapter, or any rule or regulation issued hereunder, shall not be affected by this chapter and such other laws, or rules or regulations, shall be in full force and effect and may be enforced as provided by law.

[ 2017 c 2 § 9 (Initiative Measure No. 1433, approved November 8, 2016); 1961 ex.s. c 18 § 4; 1959 c 294 § 12; ]

49.46.130 - Minimum rate of compensation for employment in excess of forty hour workweek—Exceptions.

  1. Except as otherwise provided in this section, no employer shall employ any of his or her employees for a workweek longer than forty hours unless such employee receives compensation for his or her employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he or she is employed.

  2. This section does not apply to:

    1. Any person exempted pursuant to RCW 49.46.010(3). The payment of compensation or provision of compensatory time off in addition to a salary shall not be a factor in determining whether a person is exempted under RCW 49.46.010(3)(c);

    2. Employees who request compensating time off in lieu of overtime pay;

    3. Any individual employed as a seaman whether or not the seaman is employed on a vessel other than an American vessel;

    4. Seasonal employees who are employed at concessions and recreational establishments at agricultural fairs, including those seasonal employees employed by agricultural fairs, within the state provided that the period of employment for any seasonal employee at any or all agricultural fairs does not exceed fourteen working days a year;

    5. Any individual employed as a motion picture projectionist if that employee is covered by a contract or collective bargaining agreement which regulates hours of work and overtime pay;

    6. An individual employed as a truck or bus driver who is subject to the provisions of the Federal Motor Carrier Act (49 U.S.C. Sec. 3101 et seq. and 49 U.S.C. Sec. 10101 et seq.), if the compensation system under which the truck or bus driver is paid includes overtime pay, reasonably equivalent to that required by this subsection, for working longer than forty hours per week;

    7. Any individual employed as an agricultural employee. This exemption from subsection (1) of this section applies only until December 31, 2021;

    8. Any industry in which federal law provides for an overtime payment based on a workweek other than forty hours. However, the provisions of the federal law regarding overtime payment based on a workweek other than forty hours shall nevertheless apply to employees covered by this section without regard to the existence of actual federal jurisdiction over the industrial activity of the particular employer within this state. For the purposes of this subsection, "industry" means a trade, business, industry, or other activity, or branch, or group thereof, in which individuals are gainfully employed (section 3(h) of the Fair Labor Standards Act of 1938, as amended (Public Law 93-259));

    9. Any hours worked by an employee of a carrier by air subject to the provisions of subchapter II of the Railway Labor Act (45 U.S.C. Sec. 181 et seq.), when such hours are voluntarily worked by the employee pursuant to a shift-trading practice under which the employee has the opportunity in the same or in other workweeks to reduce hours worked by voluntarily offering a shift for trade or reassignment; and

    10. Any individual licensed under chapter 18.85 RCW unless the individual is providing real estate brokerage services under a written contract with a real estate firm which provides that the individual is an employee. For purposes of this subsection (2)(j), "real estate brokerage services" and "real estate firm" mean the same as defined in RCW 18.85.011.

  3. No employer shall be deemed to have violated subsection (1) of this section by employing any employee of a retail or service establishment for a workweek in excess of the applicable workweek specified in subsection (1) of this section if:

    1. The regular rate of pay of the employee is in excess of one and one-half times the minimum hourly rate required under RCW 49.46.020; and

    2. More than half of the employee's compensation for a representative period, of not less than one month, represents commissions on goods or services.

In determining the proportion of compensation representing commissions, all earnings resulting from the application of a bona fide commission rate is to be deemed commissions on goods or services without regard to whether the computed commissions exceed the draw or guarantee.

  1. No employer of commissioned salespeople primarily engaged in the business of selling automobiles, trucks, recreational vessels, recreational vessel trailers, recreational vehicle trailers, recreational campers, manufactured housing, or farm implements to ultimate purchasers shall violate subsection (1) of this section with respect to such commissioned salespeople if the commissioned salespeople are paid the greater of:

    1. Compensation at the hourly rate, which may not be less than the rate required under RCW 49.46.020, for each hour worked up to forty hours per week, and compensation of one and one-half times that hourly rate for all hours worked over forty hours in one week; or

    2. A straight commission, a salary plus commission, or a salary plus bonus applied to gross salary.

  2. No public agency shall be deemed to have violated subsection (1) of this section with respect to the employment of any employee in fire protection activities or any employee in law enforcement activities (including security personnel in correctional institutions) if: (a) In a work period of twenty-eight consecutive days the employee receives for tours of duty which in the aggregate exceed two hundred forty hours; or (b) in the case of such an employee to whom a work period of at least seven but less than twenty-eight days applies, in his or her work period the employee receives for tours of duty which in the aggregate exceed a number of hours which bears the same ratio to the number of consecutive days in his or her work period as two hundred forty hours bears to twenty-eight days; compensation at a rate not less than one and one-half times the regular rate at which he or she is employed.

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    1. Beginning January 1, 2022, any agricultural employee shall not be employed for more than 55 hours in any one workweek unless the agricultural employee receives one and one-half times that agricultural employee's regular rate of pay for all hours worked over 55 in any one workweek.

    2. Beginning January 1, 2023, any agricultural employee shall not be employed for more than 48 hours in any one workweek unless the agricultural employee receives one and one-half times that agricultural employee's regular rate of pay for all hours worked over 48 in any one workweek.

    3. Beginning January 1, 2024, any agricultural employee shall not be employed for more than 40 hours in any one workweek unless the agricultural employee receives one and one-half times that agricultural employee's regular rate of pay for all hours worked over 40 in any one workweek.

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    1. No damages, statutory or civil penalties, attorneys' fees and costs, or other type of relief may be granted against an employer to an agricultural or dairy employee seeking unpaid overtime due to the employee's historical exclusion from overtime under subsection (2)(g) of this section, as it existed on November 4, 2020.

    2. This subsection applies to all claims, causes of actions, and proceedings commenced on or after November 5, 2020, regardless of when the claim or cause of action arose. To this extent, this subsection applies retroactively, but in all other respects it applies prospectively.

    3. This subsection does not apply to dairy employees entitled to backpay or other relief as a result of being a member in the class of plaintiffs in Martinez-Cuevas v. DeRuyter Bros. Dairy, 196 Wn.2d 506 (2020).

  5. For the purposes of this section, "agricultural employee" means any individual employed: (a) On a farm, in the employ of any person, in connection with the cultivation of the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and furbearing animals and wildlife, or in the employ of the owner or tenant or other operator of a farm in connection with the operation, management, conservation, improvement, or maintenance of such farm and its tools and equipment; (b) in packing, packaging, grading, storing or delivering to storage, or to market or to a carrier for transportation to market, any agricultural or horticultural commodity; or (c) [in] commercial canning, commercial freezing, or any other commercial processing, or with respect to services performed in connection with the cultivation, raising, harvesting, and processing of oysters or in connection with any agricultural or horticultural commodity after its delivery to a terminal market for distribution for consumption. An agricultural employee does not include a dairy employee.

  6. For the purposes of this section, "dairy employee" includes any employee engaged in dairy cattle and milk production activities described in code 112120 of the North American industry classification system.

[ 2021 c 249 § 2; 2013 c 207 § 1; 2010 c 8 § 12045; 1998 c 239 § 2; 1997 c 311 § 1; 1997 c 203 § 2; 1995 c 5 § 1; 1993 c 191 § 1; 1992 c 94 § 1; 1989 c 104 § 1; prior: 1977 ex.s. c 4 § 1; 1977 ex.s. c 74 § 1; 1975 1st ex.s. c 289 § 3; ]

49.46.140 - Notification of employers.

The director of the department of labor and industries and the commissioner of employment security shall each notify employers of the requirements of chapter 289, Laws of 1975 1st ex. sess. through their regular quarterly notices to employers.

[ 1975 1st ex.s. c 289 § 4; ]

49.46.160 - Automatic service charges.

  1. An employer that imposes an automatic service charge related to food, beverages, entertainment, or porterage provided to a customer must disclose in an itemized receipt and in any menu provided to the customer the percentage of the automatic service charge that is paid or is payable directly to the employee or employees serving the customer.

  2. For purposes of this section:

    1. "Employee" means nonmanagerial, nonsupervisory workers, including but not limited to servers, busers, banquet attendant, banquet captains, bartenders, barbacks, and porters.

    2. "Employer" means employers as defined in RCW 49.46.010 that provide food, beverages, entertainment, or porterage, including but not limited to restaurants, catering houses, convention centers, and overnight accommodations.

    3. "Service charge" means a separately designated amount collected by employers from customers that is for services provided by employees, or is described in such a way that customers might reasonably believe that the amounts are for such services. Service charges include but are not limited to charges designated on receipts as a "service charge," "gratuity," "delivery charge," or "porterage charge." Service charges are in addition to hourly wages paid or payable to the employee or employees serving the customer.

[ 2010 c 8 § 12046; 2007 c 390 § 1; ]

49.46.170 - Employment of individuals with disabilities at less than the minimum wage—State agencies prohibited.

  1. Beginning July 1, 2020, no state agency may employ an individual to work under a special certificate issued under RCW 49.12.110 and 49.46.060 for the employment of individuals with disabilities at less than the minimum wage. Any special certificate issued by the director to a state agency for the employment of an individual with a disability at less than minimum wage must expire by June 30, 2020. For the purposes of this section, "state agency" means any office, department, commission, or other unit of state government.

  2. After July 31, 2023, the director may not issue any new special certificates under RCW 49.12.110 and 49.46.060 for the employment, at less than the minimum wage, of individuals with disabilities.

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    1. Special certificates that have not expired as of July 31, 2023, remain valid until the certificate expires.

    2. The director may extend, no more than once and for no longer than one year, the duration of a special certificate that was valid as of July 25, 2021, only under the following circumstances:

      1. The individual employed under the special certificate is an "eligible person" as defined under RCW 71A.10.020; and

      2. The employer requests the extension of the special certificate.

  4. Ninety days before the expiration of the special certificates under this section, the director shall provide written notice to the employer, the employee, and the employee's legal guardian, legal representative as defined under RCW 71A.10.020, or other individual authorized to receive information on behalf of the employee, of the following:

    1. The expiration date of the special certificate;

    2. The employer's option to extend the special certificate if the conditions under subsection (3) of this section are met; and

    3. Upon request, the contact information for the department of social and health services and a statement that provides the supportive services available to the individual with disabilities.

  5. For the purposes of allowing the department of social and health services to prioritize services and existing individualized technical assistance to individuals advancing to at least minimum wage employment, the department of labor and industries may share information, such as individuals' contact information and expiration dates of special certificates[,] with the department of social and health services.

[ 2021 c 97 § 3; 2019 c 374 § 1; ]

49.46.180 - Paid sick leave—Construction workers covered by a collective bargaining agreement excluded.

  1. The sick leave provisions of RCW 49.46.200 through 49.46.830 shall not apply to construction workers covered by a collective bargaining agreement, provided:

    1. The union signatory to the collective bargaining agreement is an approved referral union program authorized under RCW 50.20.010 and in compliance with WAC 192-210-110; and

    2. The collective bargaining agreement establishes equivalent sick leave provisions, as provided in subsection (2) of this section; and

    3. The requirements of RCW 49.46.200 through 49.46.830 are expressly waived in the collective bargaining agreement in clear and unambiguous terms or in an addendum to an existing agreement including an agreement that is open for negotiation provided the sick leave portions were previously ratified by the membership.

  2. Equivalent sick leave provisions provided by a collective bargaining agreement must meet the requirements of RCW 49.46.200 through 49.46.830 and the rules adopted by the department of labor and industries, except the payment of leave at the normal hourly compensation may occur before usage.

[ 2019 c 236 § 4; ]

49.46.200 - Paid sick leave.

The demands of the workplace and of families need to be balanced to promote public health, family stability, and economic security. It is in the public interest to provide reasonable paid sick leave for employees to care for the health of themselves and their families. Such paid sick leave shall be provided at the greater of the newly increased minimum wage or the employee's regular and normal wage.

[ 2017 c 2 § 4 (Initiative Measure No. 1433, approved November 8, 2016); ]

49.46.210 - Paid sick leave—Authorized purposes—Limitations—"Family member" defined.

  1. Beginning January 1, 2018, except as provided in RCW 49.46.180, every employer shall provide each of its employees paid sick leave as follows:

    1. An employee shall accrue at least one hour of paid sick leave for every forty hours worked as an employee. An employer may provide paid sick leave in advance of accrual provided that such front-loading meets or exceeds the requirements of this section for accrual, use, and carryover of paid sick leave.

    2. An employee is authorized to use paid sick leave for the following reasons:

      1. An absence resulting from an employee's mental or physical illness, injury, or health condition; to accommodate the employee's need for medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition; or an employee's need for preventive medical care;

      2. To allow the employee to provide care for a family member with a mental or physical illness, injury, or health condition; care of a family member who needs medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition; or care for a family member who needs preventive medical care; and

      3. When the employee's place of business has been closed by order of a public official for any health-related reason, or when an employee's child's school or place of care has been closed for such a reason.

    3. An employee is authorized to use paid sick leave for absences that qualify for leave under the domestic violence leave act, chapter 49.76 RCW.

    4. An employee is entitled to use accrued paid sick leave beginning on the ninetieth calendar day after the commencement of his or her employment.

    5. Employers are not prevented from providing more generous paid sick leave policies or permitting use of paid sick leave for additional purposes.

    6. An employer may require employees to give reasonable notice of an absence from work, so long as such notice does not interfere with an employee's lawful use of paid sick leave.

    7. For absences exceeding three days, an employer may require verification that an employee's use of paid sick leave is for an authorized purpose. If an employer requires verification, verification must be provided to the employer within a reasonable time period during or after the leave. An employer's requirements for verification may not result in an unreasonable burden or expense on the employee and may not exceed privacy or verification requirements otherwise established by law.

    8. An employer may not require, as a condition of an employee taking paid sick leave, that the employee search for or find a replacement worker to cover the hours during which the employee is on paid sick leave.

    9. For each hour of paid sick leave used, an employee shall be paid the greater of the minimum hourly wage rate established in this chapter or his or her normal hourly compensation. The employer is responsible for providing regular notification to employees about the amount of paid sick leave available to the employee.

    10. Unused paid sick leave carries over to the following year, except that an employer is not required to allow an employee to carry over paid sick leave in excess of forty hours.

    11. This section does not require an employer to provide financial or other reimbursement for accrued and unused paid sick leave to any employee upon the employee's termination, resignation, retirement, or other separation from employment. When there is a separation from employment and the employee is rehired within twelve months of separation by the same employer, whether at the same or a different business location of the employer, previously accrued unused paid sick leave shall be reinstated and the previous period of employment shall be counted for purposes of determining the employee's eligibility to use paid sick leave under subsection (1)(d) of this section.

  2. For purposes of this section, "family member" means any of the following:

    1. A child, including a biological, adopted, or foster child, stepchild, or a child to whom the employee stands in loco parentis, is a legal guardian, or is a de facto parent, regardless of age or dependency status;

    2. A biological, adoptive, de facto, or foster parent, stepparent, or legal guardian of an employee or the employee's spouse or registered domestic partner, or a person who stood in loco parentis when the employee was a minor child;

    3. A spouse;

    4. A registered domestic partner;

    5. A grandparent;

    6. A grandchild; or

    7. A sibling.

  3. An employer may not adopt or enforce any policy that counts the use of paid sick leave time as an absence that may lead to or result in discipline against the employee.

  4. An employer may not discriminate or retaliate against an employee for his or her exercise of any rights under this chapter including the use of paid sick leave.

  5. [Empty]

    1. The definitions in this subsection apply to this subsection:

      1. "Average hourly earnings" means a driver's earnings from, or facilitated by, the transportation network company, during the 365 days immediately prior to the day that paid sick time is used, divided by the total hours of passenger platform time worked by the driver on that transportation network company's driver platform during that period.

      2. "Driver," "driver platform," "passenger platform time," and "transportation network company" have the meanings provided in section 1 of this act.

    2. Beginning January 1, 2023, a transportation network company must provide to each driver operating on its driver platform paid sick leave as required by this section and subject to the provisions of this subsection. A driver shall accrue one hour of paid sick leave for every 40 hours of passenger platform time worked.

    3. A driver is entitled to use accrued paid sick leave upon recording 90 hours of passenger platform time completed by the driver on the transportation network company's driver platform.

    4. For each hour of paid sick leave used, a driver shall be paid the driver's average hourly compensation.

    5. A transportation network company shall establish an accessible system for drivers to request and use paid sick leave. The system must be available to drivers via smartphone application and online web portal.

    6. A driver may carry over up to 40 hours of unused paid sick leave to the next calendar year. If a driver carries over unused paid sick leave to the following year, accrual of paid sick leave in the subsequent year must be in addition to the hours accrued in the previous year and carried over.

    7. A driver is entitled to use accrued paid sick leave if the driver has used the transportation network company's platform as a driver within 90 calendar days preceding the driver's request to use paid sick leave.

    8. A driver is entitled to use paid sick leave during a deactivation or other status that prevents the driver from performing network services on the transportation network company's platform, unless the driver's status is due to a verified allegation of sexual assault perpetrated by the driver.

    9. If a driver does not record any passenger platform time in a transportation network company's driver platform for 365 or more consecutive days or the driver's contract with a transportation network company is terminated, any unused earned paid sick leave accrued up to that point with that transportation network company is no longer valid or recognized.

    10. Drivers may use accrued days of paid sick leave in increments of a minimum of four or more hours. Drivers are entitled to request four or more hours of paid sick leave for immediate use, including consecutive days of use. Drivers are not entitled to use more than eight hours of paid sick leave within a single calendar day.

    11. A transportation network company shall compensate a driver for requested hours or days of paid sick leave no later than 14 calendar days or the next regularly scheduled date of compensation following the requested hours or days of paid sick leave.

    12. A transportation network company shall not request or require reasonable verification of a driver's qualifying illness except as permitted under subsection (1)(g) of this section. If a transportation network company requires verification pursuant to subsection (1)(g) of this section, the transportation network company must compensate the driver for the requested hours or days of paid sick leave no later than the driver's next regularly scheduled date of compensation after satisfactory verification is provided.

    13. If a driver accepts an offer of prearranged services for compensation from a transportation network company during the four-hour period or periods for which the driver requested paid sick leave, a transportation network company may determine that the driver did not use paid sick leave for an authorized purpose.

    14. A transportation network company shall provide each driver with: (i) Written notification of the current rate of average hourly compensation while a passenger is in the vehicle during the most recent calendar month for use of paid sick leave; (ii) an updated amount of accrued paid sick leave since the last notification; (iii) reduced paid sick leave since the last notification; (iv) any unused paid sick leave available for use; and (v) any amount that the transportation network company may subtract from the driver's compensation for paid sick leave. The transportation network company shall provide this information to the driver no less than monthly. The transportation network company may choose a reasonable system for providing this notification, including but not limited to: A pay stub; a weekly summary of compensation information; or an online system where drivers can access their own paid sick leave information. A transportation network company is not required to provide this information to a driver if the driver has not worked any days since the last notification.

49.46.800 - Rights and remedies—Long-term care individual providers covered under this chapter.

  1. Beginning January 1, 2017, all existing rights and remedies available under state or local law for enforcement of the minimum wage shall be applicable to enforce all of the rights established under chapter 2, Laws of 2017.

  2. The state shall pay individual providers, as defined in RCW 74.39A.240, in accordance with the minimum wage, overtime, and paid sick leave requirements of this chapter.

[ 2017 c 2 § 6 (Initiative Measure No. 1433, approved November 8, 2016); ]

49.46.810 - Adoption, implementation of rules.

The state department of labor and industries must adopt and implement rules to carry out and enforce chapter 2, Laws of 2017, including but not limited to procedures for notification to employees and reporting regarding sick leave, and protecting employees from retaliation for the lawful use of sick leave and exercising other rights under this chapter. The department's rules for enforcement of rights under chapter 2, Laws of 2017 shall be at least equal to enforcement of the minimum wage.

[ 2017 c 2 § 10 (Initiative Measure No. 1433, approved November 8, 2016); ]

49.46.820 - Chapter 2, Laws of 2017 to be liberally construed—Local jurisdictions may adopt more favorable labor standards.

The provisions of chapter 2, Laws of 2017 are to be liberally construed to effectuate the intent, policies, and purposes of chapter 2, Laws of 2017. Nothing in chapter 2, Laws of 2017 precludes local jurisdictions from enacting additional local fair labor standards that are more favorable to employees, including but not limited to more generous minimum wage or paid sick leave requirements.

[ 2017 c 2 § 11 (Initiative Measure No. 1433, approved November 8, 2016); ]

49.46.830 - Chapter 2, Laws of 2017 subject to investigation and recordkeeping provisions.

Chapter 2, Laws of 2017 shall be codified in chapter 49.46 RCW and is subject to RCW 49.46.040 (Investigation, etc.) and RCW 49.46.070 (Recordkeeping).

[ 2017 c 2 § 12 (Initiative Measure No. 1433, approved November 8, 2016); ]

49.46.910 - Short title.

This chapter may be known and cited as the "Washington Minimum Wage Act."

[ 1961 ex.s. c 18 § 6; 1959 c 294 § 14; ]

49.46.920 - Effective date—1975 1st ex.s. c 289.

This 1975 amendatory act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect September 1, 1975.

[ 1975 1st ex.s. c 289 § 5; ]

49.46.XXX - TBD

**

  1. The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

    1. "Compensation" means payment owed to a driver by reason of providing network services including, but not limited to, the minimum payment for passenger platform time and mileage, incentives, and tips.

    2. "Dispatch" means the dispatch of a driver to provide transportation to a passenger in a transportation network company endorsed vehicle through the use of a transportation network company's application dispatch system.

    3. "Dispatch location" means the location of the driver at the time the driver accepts a trip request through the driver platform.

    4. "Dispatch platform time" means the time when a driver has accepted one or more dispatches and is en route to a pick-up location and is not already transporting a passenger. Dispatch platform time ends when a passenger cancels a trip, a driver cancels a trip, or the driver begins the trip through the driver platform.

    5. "Driver" has the same meaning as "commercial transportation services provider driver" in RCW 48.177.005. A driver is not an employee or agent of a transportation network company if the following factors are met:

      1. The transportation network company does not unilaterally prescribe specific dates, times of day, or a minimum number of hours during which the driver must be logged into the transportation network company's online-enabled application or platform;

      2. The transportation network company may not terminate the contract of the driver for not accepting a specific transportation service request;

      3. The transportation network company does not prohibit the driver from performing services through other transportation network companies except while performing services through the transportation network company's online-enabled application or platform; and

      4. The transportation network company does not contractually prohibit the driver from working in any other lawful occupation or business.

    6. "Driver platform" means the driver-facing application dispatch system software or any online-enabled application service, website, or system, used by a driver, that enables the prearrangement of passenger trips for compensation.

    7. "Driver resource center" or "center" means a nonprofit organization selected by the governor to provide services to drivers. To be selected by the governor, the nonprofit organization must be registered with the Washington secretary of state, have organizational bylaws giving drivers right to membership in the organization, and have demonstrated experience: (i) Providing dispute resolution and deactivation representation services to gig economy drivers in Washington state, including representing drivers in deactivation appeals proceedings; and (ii) providing culturally competent driver representation services, outreach, and education. The administration and formation of the driver resource center may not be funded, excessively influenced, or controlled by a transportation network company. The governor or governor's designee shall select a qualified nonprofit organization to be the driver resource center within 60 days of the effective date of this section.

    8. "Driver resource center fund" or "fund" means the dedicated fund created in section 2 of this act, the sole purpose of which is to administer funds collected from transportation network companies to provide services, support, and benefits to drivers.

    9. "Network services" means services related to the transportation of passengers through the driver platform that are provided by a driver while logged in to the driver platform, including services provided during available platform time, dispatch platform time, and passenger platform time.

    10. "Passenger" has the same meaning as "commercial transportation services provider passenger" in RCW 48.177.005.

    11. "Passenger drop-off location" means the location of a driver's vehicle when the driver ends the trip in the driver platform.

    12. "Passenger pick-up location" means the location of the driver's vehicle at the time the driver starts the trip in the driver platform.

    13. "Passenger platform miles" means all miles driven during passenger platform time as recorded in a transportation network company's driver platform.

    14. "Passenger platform time" means the period of time when the driver is transporting one or more passengers on a trip. For passenger platform time involving multiple passengers picked up from different passenger pick-up locations, passenger platform time means the period of time commencing when the first passenger enters the driver's vehicle until the time when the last passenger exits the driver's vehicle.

    15. "Personal vehicle" has the same meaning as "personal vehicle" in RCW 48.177.005.

    16. "Tips" means a verifiable sum to be presented by a passenger as a gift or gratuity in recognition of some service performed for the passenger by the driver receiving the tip.

    17. "Transportation network company" has the same meaning as "commercial transportation services provider" in RCW 48.177.005.

  2. A driver is covered by this section if the driver provides network services within the state of Washington.

  3. [Empty]

    1. A transportation network company is covered by this section if it operates within the state of Washington.

    2. Separate entities that form an integrated enterprise are considered a single transportation network company under this section. Separate entities will be considered an integrated enterprise and a single transportation network company where a separate entity controls the operation of another entity. Factors to consider include, but are not limited to, the degree of interrelation between the operations of multiple entities; the degree to which the entities share common management; the centralized control of labor relations; the degree of common ownership or financial control over the entities; and the use of a common brand, trade, business, or operating name.

  4. [Empty]

    1. A transportation network company shall ensure that a driver's total compensation is not less than the standard set forth in (b) or (c) of this subsection.

    2. For all time and miles on trips originating in cities with a population of more than 600,000, and for time and miles on trips driven in cities with a population of more than 600,000, the greater of:

      1. $0.59 cents per minute and $1.38 per passenger platform mile; or

      2. A minimum of $5.17 per dispatched trip.

    3. For all other trips, the greater of:

      1. $0.34 cents per minute and $1.17 per passenger platform mile; or

      2. A minimum of $5.00 per dispatched trip.

    4. Beginning September 30, 2022, and on each following September 30th, the department shall calculate adjusted per mile and per minute amounts by increasing the current year's per mile and per minute amounts by the rate of increase of the state minimum wage, calculated to the nearest cent. The adjusted amount calculated under this section takes effect on the following January 1st.

  5. [Empty]

    1. For the purposes of this section, a dispatched trip includes:

      1. A trip in which the driver transports the passenger to the passenger's desired drop-off location;

      2. A trip canceled by a passenger or the transportation network company unless the transportation network company refunds the passenger cancellation fee due to driver conduct;

      3. A trip that is canceled by the driver for good cause consistent with company policy; and

      4. A trip where the passenger does not appear at the passenger pick-up location within five minutes.

    2. A dispatched trip does not include a trip canceled by the driver, unless the trip is canceled for good cause as reasonably allowed under this section.

  6. [Empty]

    1. A transportation network company shall pay to its drivers all tips and gratuities. Tips paid to a driver are in addition to, and may not count towards, the driver's minimum compensation under this section.

    2. Incentives may count towards the minimum compensation requirements only for the particular trip in which the incentives are earned.

    3. Tolls, fees, or surcharges incurred by a driver during a trip must not impact minimum compensation requirements.

    4. A transportation network company may only deduct compensation when the driver expressly authorizes the deduction in writing and does so in advance for a lawful purpose. Any authorization by a driver must be voluntary and knowing. Neither the transportation network company nor any person acting in the interest of the transportation network company may derive any financial profit or benefit from any of the deductions under this section. For the purposes of this section, reasonable interest charged by the transportation network company or any person acting in the interest of a transportation network company, for a loan or credit extended to the driver, is not considered to be of financial benefit to the transportation network company or person acting in the interest of a transportation network company.

  7. A transportation network company may not impose vehicle age limits in any product classes that are more restrictive than limits provided by state or local law.

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    1. A transportation network company shall provide each driver with a written notice of rights established by this section in a form and manner sufficient to inform drivers of their rights under this section. The notice of rights shall provide information on:

      1. The right to the applicable per minute rate and per mile rate guaranteed by this section;

      2. The right to be protected from retaliation for exercising in good faith the rights protected by this section; and

      3. The right to seek legal action or file a complaint with the department for violation of the requirements of this section, including a transportation network company's failure to pay the minimum per minute rate or per mile rate, or a transportation network company's retaliation against a driver or other person for engaging in an activity protected by this section.

    2. A transportation network company shall provide the notice of rights required by this section in an electronic format that is readily accessible to the driver. The notice of rights shall be made available to the driver via smartphone application or online web portal, in English and any language that the transportation network company knows or has reason to know is the primary language of the driver.

  9. Within 24 hours of each trip completion, a transportation network company must transmit an electronic receipt to the driver that contains the following information for each unique trip, or portion of a unique trip, covered by this section:

    1. The total amount of passenger platform time;

    2. The total mileage driven during passenger platform time;

    3. The total mileage driven during passenger pick-up time;

    4. Passenger fare;

    5. Rate or rates of pay, including but not limited to the rate per minute, rate per mile, percentage of passenger fare, and any applicable price multiplier or variable pricing policy in effect for the trip;

    6. Tip compensation;

    7. Gross payment;

    8. Net payment after deductions, fees, tolls, surcharges, lease fees, or other charges;

    9. Itemized deductions or fees, including any toll, surcharge, commission, lease fees, and other charges; and

    10. Pursuant to rules issued by the department, other information that is material and necessary to effectuate the terms of this section.

  10. A transportation network company shall make driver per-trip receipts available in a downloadable format, such as a comma-separated values file, via smartphone application or online web portal for a period of three years from the date the transportation network company provided the receipt to the driver.

  11. On a weekly basis, the transportation network company shall provide written notice to the driver that contains the following information for trips, or a portion of a trip, that is covered by this section and which occurred in the prior week:

    1. The driver's total passenger platform time;

    2. Total mileage driven by the driver during passenger platform time;

    3. Total amount of passenger fares;

    4. The driver's total tip compensation;

    5. The driver's gross compensation, itemized by: (i) Rate per minute; (ii) rate per mile; and (iii) any other method used to calculate pay including, but not limited to, base pay, percentage of passenger fare, or any applicable price multiplier or variable pricing policy in effect for the trip;

    6. The driver's net payment after deductions, fees, tolls, surcharges, lease fees, or other charges;

    7. Itemized deductions or fees, including all tolls, surcharges, commissions, lease fees, and other charges, from the driver's payment; and

    8. Pursuant to rules issued by the department, other information that is material and necessary to effectuate the terms of this section.

  12. Within 24 hours of a trip's completion, a transportation network company must transmit an electronic receipt to the passenger, for on trip time, on behalf of the driver that lists:

    1. The date and time of the trip;

    2. The passenger pick-up and passenger drop-off locations for the trip. In describing the passenger pick-up location and passenger drop-off location, the transportation network company shall describe the location by indicating the specific block (e.g. "the 300 block of Pine Street") in which the passenger pick-up and passenger drop-off occurred. A transportation network company is authorized to indicate the location with greater specificity, such as with a street address or intersection, at its discretion, provided the location is sufficiently anonymized to protect driver and passenger safety and privacy;

    3. The total duration and distance of the trip;

    4. The driver's first name;

    5. The total fare paid, itemizing all charges and fees;

    6. Compensation paid to the driver with passenger-paid tips separately itemized; and

    7. Pursuant to rules issued by the director, other information that is material and necessary to effectuate the terms of this section.

  13. [Empty]

    1. Beginning 90 days from the effective date of this section, transportation network companies shall remit $0.15 cents of every passenger fare to the driver resource center fund, created in section 2 of this act, for the driver resource center to support the driver community. The remittance under this subsection is a pass-through of passenger fares and is not considered a transportation network company's funding of the driver resource center. Passenger fares paid include each individual trip portion on shared trips. The remittances to the fund must be made on a quarterly basis.

    2. Beginning September 30, 2022, and on each following September 30th, the department shall calculate an adjusted per trip remittance by adjusting the current amount by the rate of inflation. The adjusted amounts must be calculated to the nearest cent using the consumer price index for urban wage earners and clerical workers, CPI-W, or a successor index, for the 12 months prior to each September 1st as calculated by the United States department of labor. Each adjusted amount calculated under this subsection takes effect on the following January 1st.

  14. Transportation network companies shall provide an opportunity for drivers to make voluntary per-trip earnings deduction contributions to the driver resource center, provided that 100 or more drivers working for transportation network companies covered under this section have authorized such a deduction to the driver resource center, and subject to the following:

    1. A driver must expressly authorize the deduction in writing to the transportation network company. Written authorization must include, at a minimum, sufficient information to identify the driver and the driver's desired per-trip deduction amount. These deductions may reduce the driver's per-trip earnings below the minimums set forth in this section.

    2. The transportation network company may require written authorization to be submitted in electronic format from the driver resource center.

    3. The transportation network company shall make the first deductions within 30 days of receiving a written authorization of the driver, and shall remit deductions to the driver resource center each month, with remittance due not later than 28 days following the end of the month.

    4. A driver's authorization remains in effect until the driver resource center provides an express revocation to the transportation network company.

    5. A transportation network company shall rely on information provided by the driver resource center regarding the authorization and revocation of deductions.

    6. Upon request by a transportation network company, the driver resource center shall reimburse the transportation network company for the costs associated with deduction and remittance. The department shall adopt rules to calculate the reimbursable costs.

  15. [Empty]

    1. If the transportation network company does not collect and remit the surcharges required under subsection (13) of this section of every fare and, when applicable, under subsection (14) of this section, the department shall notify the department of licensing.

    2. Each transportation network company shall submit to the fund, with its remittance, a report detailing the number of trips in the previous month and the total amount of the surcharge charged to customers. The first payment and accounting is due on the 30th day of the quarter following the imposition of the surcharge. Failure to remit payments by the deadlines is deemed a delinquency and the transportation network company is subject to penalties and interest as follows:

      1. The rate of interest applicable to delinquent payment obligations under this section is 12 percent per annum, or the maximum rate permitted under RCW 19.52.020.

      2. Any monetary penalty imposed under this section must be retained by the department and be used to defray the costs of administering this section. A transportation network company that is found, after a hearing held pursuant to chapter 34.12 RCW, to be in default to the fund for assessments owed under this section is liable for the amount of the assessments determined to be due and outstanding, plus interest on the amounts owed and any monetary penalties imposed under this section.

      3. If a transportation network company fails to pay any assessments or penalties awarded under this section within 20 days of issuance of a valid order to pay, the transportation network company is liable for all amounts wrongfully withheld, plus interest as provided for in this subsection, and reasonable attorneys' fees and costs.

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    1. The state expressly intends to displace competition with regulation allowing a transportation network company and its drivers collectively to enter agreements with the driver resource center. The state policy is to promote the rights of drivers and transportation network companies and provide fair processes related to driver account activation. The state intends that any agreement under this section is immune from all federal and state antitrust laws. A transportation network company may, at its own volition, enter into an agreement with the driver resource center regarding the driver account deactivation process. Any agreement must be approved by the department. The department may approve an agreement only if the agreement contains the following:

      1. The agreement must provide due process for drivers who face account deactivation. Due process must include the following protections:

(A) Opportunity for a driver representative to support drivers throughout the deactivation process;

(B) An agreed-upon just cause standard for upholding deactivations;

(C) Within 30 calendar days of a request, furnishing to the driver and driver representative information and evidence the transportation network company relied upon in making the deactivation decision, provided that personal identifying information is redacted to address reasonable privacy concerns;

(D) A good faith, substantive informal resolution process that is committed to efficient resolution of deactivation conflicts within 30 days of the transportation network company being notified of the conflict;

(E) A formal process for adjudication by a panel composed of peer drivers mutually selected by the transportation network company and the driver resource center and administered by a neutral third-party moderator. The panel has the authority to make binding, make-whole monetary awards, including back pay, based on an agreed-upon formula for cases not resolved during the informal process; and

(F) Agreement by the transportation network company to use the formal process set forth in this subsection to resolve disputes over deactivations as an alternative to individual arbitration with regard to such a dispute, should the driver so choose; and

    ii. An ongoing process for drivers to have a voice in working conditions, including policy changes that impact their work.

b. Any agreement under this section must be submitted to the department for approval. The department shall review the agreement to ensure that its content is consistent with this subsection and the public policy goals set forth in this subsection. The department shall consider in its review both qualitative and quantitative effects of the agreement, how the agreement comports with the state policies set forth in this section, and any available business data and economic studies. In conducting a review, the record shall not be limited to the submissions of the parties nor to the terms of the proposed agreement. The department shall have the right to gather and consider any necessary evidence, including by conducting public hearings and requesting additional information from the parties. The department may approve or reject a proposed agreement, and may require the parties to submit a revised proposal on all or particular parts of the proposed agreement. If the department rejects all or part of an agreement, it shall set forth its reasoning in writing and shall suggest ways the parties may remedy the failures. Absent good cause, the department shall issue a written determination regarding its approval, rejection, or any suggestions in the event of rejection of all or part of the agreement, within 30 days of submission of the agreement.
  1. The department may adopt rules to implement this section.

[ 2021 c XXX § 1; ]**

49.46.XXX - TBD

**

  1. The driver resource center fund is created in the custody of the state treasurer.

  2. All moneys received from the remittance in section 1 of this act must be deposited into the fund.

  3. Only the director of the department of labor and industries or the director's designee may authorize expenditures from the fund. The fund is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

  4. The department may make expenditures from the fund for the following purposes:

    1. Services provided by the driver resource center under contract, including services, representation, and other support to drivers. The department must distribute funding received by the account, exclusive of the department's administrative costs deducted under (b) of this subsection, to the center on a quarterly basis; and

    2. The department's costs of administering the fund and its duties under section 1 of this act, not to exceed 10 percent of revenues to the fund.

[ 2021 c XXX § 2; ]**


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