2025 Washington State Employment Law Changes

With the arrival of 2025, Washington State employers and employees should prepare for significant updates to the state’s employment laws. These changes aim to enhance workplace equity, worker protections, and employer compliance. Here’s an overview of what to expect:

1. Minimum Wage Increase

Effective January 1, 2025, Washington’s minimum wage will increase to $16.66 per hour, reflecting the state’s commitment to ensuring fair compensation in line with inflation and cost-of-living adjustments. This increase applies to all workers aged 16 and older. For employers with tipped employees, it’s important to remember that Washington does not allow tip credit; all employees must receive at least the full minimum wage.

3. Overtime exempt employees

Along with calculating the new minimum wage, L&I uses that information to update the minimum salary thresholds for overtime exempt employees. This change impacts how much executive, administrative, and professional workers plus computer professionals and outside salespeople must earn in salary to be exempt from the requirement to pay them overtime.

For 2025, small employers with up 50 employees must pay overtime exempt workers at least 2 times the minimum wage. That means an exempt employee will have to earn at least $1,332.80 a week ($69,305.60 a year). For large employers, with 51 or more employees, overtime exempt workers must make at least 2.25 times the minimum wage. That means an exempt employee for one of these larger employers must earn at least $1,499.40 a week ($77,968.80 a year).

2. Expanded Paid Family and Medical Leave (PFML)

The Paid Family and Medical Leave program will see expanded benefits starting in 2025. Eligible employees will now be able to take up to 20 weeks of paid leave (an increase from 16 weeks) for qualifying events such as:

• Caring for a new child through birth, adoption, or foster placement.

• Personal or family medical emergencies.

• Situations arising from a family member’s active-duty military service.

Additionally, the cap on weekly benefits will increase to $1,500, ensuring greater financial support during leave periods.

3. New Workplace Accommodation Requirements

Washington State is strengthening workplace protections for employees with disabilities and those requiring reasonable accommodations. Under the updated rules:

• Employers with 15 or more employees must provide accommodations for mental health conditions.

• Enhanced clarity on the interactive process for determining reasonable accommodations will be outlined, emphasizing employer and employee collaboration.

• Training requirements for HR personnel on handling accommodation requests will be mandated.

4. Pay Transparency Enhancements

Building on existing pay transparency laws, Washington will require all job postings to include:

• A salary or hourly wage range.

• A general description of benefits and other compensation.

This measure aims to foster pay equity by providing candidates with clear expectations upfront, reducing disparities and promoting fairness in hiring practices.

5. Remote Work Regulations

With remote work becoming increasingly common, Washington is introducing new regulations to ensure fair treatment of remote employees. Highlights include:

• Reimbursement for necessary expenses incurred while working remotely, such as internet and office supplies.

• Clarifications on wage and hour laws for remote workers, including meal and rest break compliance.

• Employer obligations to maintain a safe home office environment.

6. Anti-Discrimination Updates

The Washington Law Against Discrimination (WLAD) will expand its protections to include gig and contract workers. This extension ensures that all workers, regardless of employment classification, are protected against discrimination based on race, gender, disability, sexual orientation, and other protected characteristics.

Preparing for Compliance

To navigate these changes successfully, employers should:

• Review and update employee handbooks and policies to align with the new laws.

• Provide training for management and HR teams on updated requirements.

• Consult with legal counsel or labor law experts to ensure compliance.

Final Thoughts

These updates to Washington’s employment laws underscore the state’s dedication to fostering equitable, safe, and supportive workplaces. Both employers and employees should stay informed and proactive in understanding these changes to benefit from a fairer work environment in 2025 and beyond.

This Article does not constitute legal, accounting, or tax advice and

does not address state or local law.