Washington State Regulatory Updates for 2025

February 12, 2025

Please take note of various regulatory changes that are due to take effect in Washington this year:

Wage Changes | Effective Jan. 1, 2025

Minimum Wage
- State minimum wage is $16.66 per hour.
- Check local ordinances for any regional minimum wages (as noted in recent Employer Alert).
Overtime-Exempt Minimum Salary Threshold
- To be eligible for overtime exemption, employees must meet certain duties tests and be paid a minimum of the following salaries, depending on the employer size:
  - $69,305.60 a year ($1,332.80/week) for small employers (1-50 employees)
- $77,968.80 a year ($1,499.40/week) for large employers (51 or more employees)
Non-compete Agreements
- Non-compete agreements, which prevent employees and independent contractors from working for a competitor or starting a similar business, are enforceable in Washington only if the worker earns above an annual threshold amount. If the applicable salary threshold is satisfied, the agreement is then only enforceable if it is reasonable in scope and duration.
- The annual earning threshold for employees is $123,394.17.
- The annual earning threshold for independent contractors is $308,485.43.
Outside Employment
- Employers can’t restrict an employee’s outside employment or self-employment unless the employee is paid at least twice the minimum wage: $33.32 per hour, or $69,305.60 per year.
- Exceptions may apply if the outside employment creates safety issues, scheduling issues, or clear conflicts of interest.

Expansion of Paid Sick Leave Usage | Effective Jan. 1, 2025

The definition of “family member” is expanded to include any individual who regularly resides in the employee’s home or where the relationship creates an expectation of care, and the individual is dependent on the employee for care.
The authorized use of paid sick leave is expanded to include the use of benefits when an employee’s place of business or the employee’s child’s school or care facility closes due to a government-declared emergency.

Expansion of Equal Pay and Opportunities Act | Effective July 1, 2025

Amends the current Equal Pay and Opportunities Act, which previously focused only on gender equity, to include pay and opportunity protections for employees based on a broad range of protected classes. Protected class means a person’s age, sex, marital status, sexual orientation, race, creed, color, national origin, citizenship or immigration status, honorably discharged veteran or military status, or the presence of any sensory, mental or physical disability or the use of a trained guide dog or service animal by a person with a disability.

Time-loss Benefits | Effective July 1, 2025

An injured worker who is unable to work due to injury can now receive wage replacement income from L&I sooner. Instead of 14 days, the temporary total disability now only needs to last for seven days to access the time-loss benefits for the first three days after their injury.

Please also mark your calendars for Associated Industries’ ongoing Paid Leave Webinar Series for a more detailed discussion of common leave issues: