Last month’s election results included more than determining the next president and allowing recreational marijuana in California; states across the country also passed legislation changing employment laws – specifically minimum wage and sick pay. I thought it would be interesting to take a look at one of these states (one of our neighbors to the north): Washington.

Case Study: Minimum Wage & Paid Sick Leave in Washington State

Washington isn’t new to interesting legislation. Last year they passed a few statutes regarding nexus in the state and a five-point internet sales tax solution. What about the recent election? The state passed a law regarding minimum wage and paid sick leave.

Although Washington State’s minimum wage was already the 8th highest in the country and more than $2.00 above the federal minimum wage, voters passed an initiative that will significantly affect employees’ wages.

Initiative 1433’s goal is to increase minimum wage in the state to $13.50 by 2020 according to this schedule:

• January 1, 2017 $11.00
• January 1, 2018: $11.50
• January 1, 2019: $12.00
• January 1, 2020: $13.50

In addition to raising the minimum wage, the initiative includes a paid sick leave program that begins January 1, 2018. Through this program, employees will accrue an hour of paid sick leave for every 40 hours worked; there is no upper limit or cap on how many hours they can earn in a calendar year.

In addition:

• Up to 40 unused sick leave hours will roll over to the next year
• Employer can require employees provide verification they’re actually sick for leave lasting more than 3 days in a row
• Employer can require “reasonable notification” prior to an employee taking sick leave
• The employer doesn’t need to pay employees for unused sick time when they leave the company
• Paid sick leave can be used to accommodate a physical or mental health condition (including diagnosis, care, treatment, etc.), provide care for a family member’s physical or mental health condition, provide compensation when either the company or a child’s school closes for a health related reason or to address legal needs, treatment or services relating to domestic violence

How does this relate to Miles Consulting Group’s clients? Back in 2015, Washington ranked 11th out of 50 according to the Tax Foundation’s 2015 State Business Tax Climate Index. Will these new minimum wage and paid sick leave laws affect their ranking? Quite possibly.

How does Washington’s new legislation compare to other states’ recent measures? Stay tuned for details in the coming weeks!