2024 Washington Labor & Employment Year End Review

Current Status of EPOA Cases in Washington

Seattle, Wash. (March 6, 2025) - On January 1, 2023, Washington’s Equal Pay and Opportunity Act (“EPOA”), RCW 49.58.110, went into effect, requiring employers with 15 or more employees to disclose, in each posting for each job opening, the wage scale or salary ranges and a general description of all of the benefits and other compensation being offered to the applicant. RCW 49.58.110(1).

Since this law went into effect, hundreds of class actions lawsuits have been filed against companies in nearly every industry. The lawsuits are targeting small businesses as well as some of Washington’s largest employers and are having a profound effect on business in the state. There are several repeat or serial plaintiffs, and the bulk of the lawsuits have been filed by the same few firms.

Washington employers have sought to comply with the law; however, ambiguities in the law have presented challenges with compliance as businesses await definitive interpretations from the courts. Businesses and their attorneys are fighting back against the wave of class action filings with significant litigation occurring. A case brought against Washington Fine Wine & Spirits, LLC, d/b/a Total Wine & More (“Total Wine & More”) is at the forefront, pending before the Washington Supreme Court on a Certified Question by Judge Chun of the U.S. District Court for the Western District of Washington. On February 13, 2025, the Justices heard oral argument on the following question before them:

What must a plaintiff prove to be deemed a "job applicant" within the meaning of RCW 49.58.110(4)? For example, must they prove that they are a "bona fide" applicant?

Several amicus briefs were filed by organizations addressing the lack of clarity in the EPOA and the concerning and negative impact it is having on Washington businesses directly and the economy as a whole. The Association of Washington Business, Washington Hospitality Association, and the U.S. Chamber of Commerce were among those that filed briefs.

A decision is not expected for a few months, but the impact will be substantial irrespective of how the Justices rule.

Non-Compete Agreements – 2025 Update

On January 23, 2025, the Washington Supreme Court issued a decision in David v. Freedom Vans LLC et. al. that significantly impacts non-compete agreements. In Washington, non-compete agreements include every written or oral covenant, agreement, or contract by which an employee or independent contractor is prohibited or restrained from engaging in a lawful profession, trade, or business of any kind. RCW 49.62.010(4). A “noncompetition covenant” also includes an agreement that directly or indirectly prohibits the acceptance or transaction of business with a customer. RCW 49.62.010(4).

RCW 49.62.070 provides that “an employer may not restrict, restrain, or prohibit an employee earning less than twice the applicable state minimum hourly wages from having an additional job, supplementing their income by working for another employer, working as an independent contractor, or being self-employed.” RCW 49.62.070(1).

Because of RCW 49.62.070, in Washington, employers must be careful and narrowly tailor any non-compete agreements or non-compete provisions in an employment contract. The Court in in David v. Freedom Vans LLC et. al. held the following:

Employers who pay employees less than twice the minimum wage cannot prohibit them from working a second job including with a competitor, except for in a few, limited exceptions.
Employers may impose prohibitions on second jobs consistent with the duty of loyalty only when reasonable in light of the facts and specific provisions within the agreement, which is decided on a case-by-case basis.
The duty of loyalty should be narrowly construed as an exception to the general rule that non-compete agreements are presumptively invalid for low wage earners.

Although there are select exceptions, due to the narrow interpretation of the duty of loyalty in Washington’s recent case law, employers of low-wage workers should consider removing any restatement of the duty of loyalty from agreements, contracts, and even policies and practices to minimize the risk of litigation in Washington’s employee-friendly climate. Although restatements of the duty of loyalty are not per se violations of Washington’s law regarding non-compete agreements, employers can minimize their risk of litigation on this issue by removing such references altogether.

Additionally, non-compete agreements are generally unenforceable for any employee making less than the thresholds outlined below:

Employee Type	2024 Threshold	2025 Threshold
Employee	$120,559.99 per year	$123,394.17 per year
Independent Contractor	$301,399.98 per year	$308,485.43 per year

The Employee Free Choice Act

On June 5, 2024, Washington State enacted the Employee Free Choice Act. The Act prohibits employers from requiring employees to attend meetings addressing the employers’ views on religion and politics.

Under the new law, it is illegal for employers to require employees to attend or participate in a meeting held by the employer if the primary purpose of the meeting is to share the employer’s views on religious or political matters. The employer is also barred from requiring employees to view electronic or other communications if the primary purpose is to share the employer’s views on religious or political matters.

The law defines both “religious matters” and “political matters.” “Religious matters” is self-explanatory, but “political matters” is defined expansively to include not only traditionally political issues, but any discussion to join or support any civic, community, fraternal, or labor association or organization. In short, the law prohibits employers from requiring that its employees attend anti-union meetings.

The law exempts religious organizations that are exempt from the requirements of Title VII prohibiting speech on religious matters.

The law provides employees with the right to bring a civil action if the employer retaliates against them for refusing to attend a meeting or listening to a communication that violates the Act, but the statute has a relatively short statute of limitations period of 90 days.

Washington State is not the only state to enact such legislation, and a question that has arisen is whether these statutes will be struck down because they are preempted by the National Labor Relations Act, which expressly allows such meetings to occur.

Minimum Wage Updates

1.Updates to Minimum Salary and Hourly Wage Laws

The Washington Minimum Wage Act (WMWA), codified in Chapter 49.46 of the Washington Revised Code, provides for the payment of minimum wages, overtime, and mandatory paid sick leave. However, many local jurisdictions have their own minimum wage requirements

(a) Minimum Hourly Rates

As of January 1, 2025, the inflation-adjusted minimum wage rate, as calculated by the State of Washington, is $16.66 per hour.

For employees who perform work in Seattle, a minimum wage rate applies that is adjusted annually for inflation. Effective January 1, 2025, the Seattle minimum wage is $20.76 per hour.

In the City of SeaTac, a minimum wage rate for nonsupervisory employees in the hospitality and transportation industry applies that is adjusted annually for inflation. Effective January 1, 2025, the SeaTac minimum wage is $20.17 per hour.

In the City of Tukwila for employers with either 15 employees worldwide or an annual gross revenue of over $2 million, the minimum wage standards, effective July 1, 2025, will be $21.10 for large employers (over 500 employees worldwide, and certain franchise), and $20.10 for mid-size employers until July 1, 2025 – thereafter it will be $21.10 for mid-size employers (15 to 500 employees worldwide or annual gross revenue over $2 million in Tukwila). After July 1, 2025, mid-size and large employer minimum wage rates in Tukwila will be same.

In Bellingham, the minimum wage effective January 1 through April 20, 2025 will be $17.66; thereafter, it will raise to $18.66.

In Burien, the minimum wage is $21.16 per hour for employers with more than 500 employees, and $20.16 per hour for employers with 21-499 employees.

In Everett, the minimum wage will change effective July 1, 2025 to $20.24 per hour for employers with more than 500 employees in Washington, and to $18.24 for employers with between 15 and employees in Washington.

In the unincorporated areas of King County, the minimum wage is $20.29 per hour for employers with more than 500 employers, $18.29 per hour for employers with 15-500 employees, and $17.29 for employers with less than 15 employees and less than $2 million in gross revenue.

In the City of Renton, the minimum wage effective January 1, 2025 is $20.90 per hour for employers with 501 or more employees; and for employers with 15-500 employees the minimum rate will be $18.90 until July 1, 2025 whereupon it will become $19.90.

(b) Minimum Salary Rates

Effective January 1, 2025, the minimum salary rate for the salaried exemptions under the Washington State Minimum Wage Act is $1,332.80 a week ($69,305.60 a year) for employers with up to 50 employees, and $1,499.40 a week ($77,968.80 a year) for employers with 51 or more employees.

Certain highly skilled computer workers are specifically included within the definition of exempt professional employees. Effective July 1, 2020, this exemption was amended to generally align the duties test with that currently in effect under the federal FLSA (as amended in 2004).

Effective January 1, 2025 the minimum pay rate for exemption for computer professionals paid on an hourly rate basis is 3.5 times the state minimum wage rate, or $58.31 per hour. This minimum rate adjusts annually for inflation, as the minimum wage rate is adjusted. The exempt hourly rates for computer workers specified in the regulation are summarized in the following table:

Employer Size

July 1, 2020

January 1, 2021

January 1, 2022

Thereafter

1-50 Employees

$27.63 per hour

Minimum Wage x 2.75

Minimum Wage x 3.5

51+ Employees

Minimum Wage x 2.75

Minimum Wage x 3.5

Minimum Wage x 3.

(d) Pay Scales for Transportation Network Companies

Transportation Network Companies (TNCs) must pay minimum compensation and paid sick time to their non-employee drivers. A TNC is defined as a company that uses a digital network to connect passengers to drivers for the purpose of providing prearranged rides.

In 2025, for trips within Seattle, drivers working for a TNC must earn at least 68 cents for each minute a driver is transporting passengers and $1.59 for every mile driven during a trip, or $5.95 per trip, whichever is greater. For trips outside of Seattle, drivers must earn 39 cents per minute and $1.34 for each mile driven during that time, or $3.45 per trip, whichever is greater.

For more information on these developments, contact the authors or editor of this alert. Visit our Labor & Employment Practice page for additional alerts in this area.

Authors:

Benjamin J. Stone, Partner

Kylene Slocum, Associate

Kaytlin Carlson, Associate

Kimberly Hardiman, Associate