The legislature recognizes that the numerous cases in Washington state have addressed the application of the prospective and retroactive effect of the courts' decisions. While the courts have established a general rule favoring retroactivity, the legislature finds that the rule imposes an inequitable result in certain exceptional cases.
The legislature intends to limit the retroactive effect of court decisions concerning overtime wage claims by delineating factors that establish inequitable results.
This section adds a new section to an existing chapter 49.46. Here is the modified chapter for context.
When considering whether to award retroactive pay in a cause of action seeking overtime pay under the provisions of RCW 49.46.130 or other provision of law, the court is prohibited from making such an award when the award would create a substantially inequitable result.
An award of retroactive pay creates a substantially inequitable result in causes of action for overtime pay when:
A court announces a new rule or interpretation of law; and
The previous rule or interpretation of law had been:
Expressed in a statute, ordinance, rule, or court decision; or
Expressed in a reasonable interpretation of such statute, ordinance, rule, or court decision.
Section 2 of this act applies to all causes of action regarding overtime wage claims regardless of when the cause of action may have arisen. To the extent a cause of action has arisen before the effective date of this section, this section applies retroactively, and applies prospectively in all other respects.