2025 Washington Labor & Employment Year End Review

Washington state saw many significant developments on the labor and employment law front in 2025. Below is a summary of all these key changes.

Amendments to Equal Pay and Opportunities Act (EPOA)

On January 1, 2023, RCW 49.58.110 (“EPOA”) went into effect. This law requires 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 the benefits and other compensation being offered to the applicant. RCW 49.58.110(1). Until recently, the statute provided a $5,000 penalty per violation, along with legal fees. (It has since been amended, as discussed below.) Given the stiff fine and award of fees, hundreds of class action lawsuits have been brought under this statute, which has resulted in significant challenges for businesses operating in Washington.

One problem with the class actions is that they are brought by plaintiffs who are trawling the internet for ads that lack wage or salary information who then apply for the jobs to trigger the statute, not because they are genuinely interested in employment. In fact, many of the class-action lawsuits are brought by the same five or six people, who use the same law firm to prosecute the claim. Employers have challenged this practice and, recently, the Washington Supreme Court considered it in the case of Branson v. Washington Fine Wine & Spirits, LLC, 5 Wn.3d 289, 574 P.3d 1031 (2025). At issue there was the meaning of the term “job applicant” under the statutory provision that grants a “job applicant” the right to sue an employer for a violation of the statute. The employer-defendant – along with a number of business groups who appeared as amici curiae – argued that “job applicant” means a “bona fide applicant” or someone who applied for the job in “good faith” – as determined by the Washington State Department of Labor and Industries - and such a definition is needed to stop the flood of class-action lawsuits by “bounty hunters.”

Unfortunately, the Washington Supreme Court rejected this common-sense interpretation of the term “job applicant.” Instead, it held that “job applicant” meant anyone who could click a mouse a few times and drop a resume into a portal. The definition did not “rely on the subjective intent of an individual to determine whether a person is an applicant. They simply require that an individual submits a formal application or request for a job. … The plain meaning of the term ‘job applicant' means a person who applies to a job posting, regardless of their subjective intent in doing so.” 5 Wn.3d at 296. In addition, according to the Court, if the legislature intended to limit “job applicant” to bona fide applicants or to those who applied in good faith, it should have explicitly said so in the statute (even though, as the appellant-employer and amici curiae pointed out, not everything needed to be said explicitly to be implicit, just as the statute didn't have to use the term “human” when stating “job applicant” to establish that bots and deceased persons were not included in the class of plaintiffs who could file suit). Finally, the Court rejected the interpretation of “job applicant” adopted by the Department of Labor and Industries because the statute was not ambiguous (thus, agency interpretation was not required) and, according to the court, the agency adopted its definition for the self-serving purpose of limiting the number of complaints it had to investigate due to its limited resources.

This decision was a setback for businesses that employ people in the state. Fortunately for business interests, the legislature heard the complaints about the statute and responded. It held public hearings and, on May 20, 2025, the Governor signed Substitute Senate Bill 5408 (SSB 5408), enacting important amendments to the EPOA. These amendments went into effect on July 27, 2025 and clarified and revised four key parts of the EPOA:

• Opportunity to Cure: Previously, a job applicant was not required to notify an employer that a job posting omitted pay or benefits information. This is no longer the case, and under the new law, an employer must be afforded the opportunity to correct a violation before a job applicant may seek remedies. If an employer receives notice that its posting does not comply, the employer must make the correction within five business days of receiving the written notice. Where a third-party job posting is at issue, the employer may satisfy its burden by demanding a correction of the posting. If the employer makes the correction or demands a correction, the employee or job applicant may not assess or award penalties or damages. This does not apply after July 27, 2027.
   
• Remedies: Previously job applicants or employees were entitled to the remedies in RCW 49.58.060 and 49.58.70 for violations of this law. This has been removed and now there is a sliding scale for damages that range between $100 and $5,000 per violation, plus reasonable attorneys' fees and costs. The amount of damages may be evaluated based on several factors including, "[w]hether the violation was committed willfully or the violation is a repeat violation; the size of the employer; the amount necessary to deter future noncompliance; the purposes of this chapter; and any other factor deemed appropriate by the court."
   
• Fixed Pay Rate: The EPOA required employers to disclose either a “wage scale or salary range” on job postings and did not have a carve out for jobs that offer a fixed pay rate. This has been updated and employers offering a fixed wage amount need only disclose the fixed wage amount.
   
• Third-party Postings: Many of the class action EPOA cases stemmed from non-compliant third-party postings that employers did not even know existed. Fortunately, SSB 5408 clarifies that the definition of "posting" does not include a "solicitation for recruiting job applicants that is digitally replicated and published without an employer's consent."
  While this law still poses risks for employers, these amendments have addressed some of the primary concerns for employers and clarified some key aspects of the law.

Personnel Files

On July 27, 2025, a new law governing the right of employees to inspect their personnel file went into effect. The law amends RCW 49.12.240 and RCW 49.12.250 and added a new section to Chapter 49.12 prescribing penalties for failure to comply.

RCW 49.12.240 was amended to permit employees to inspect their own personnel file(s) within 21 calendar days as prescribed by RCW 49.12.250. The update also changed the language in RCW 49.12.250 to require employers to provide a copy of personnel files within 21 calendar days after the employee requests the file at no cost to the employee, former employee, or their designee. The law also added the requirement that within 21 calendar days of receiving a written request from a former employee the employer must provide a signed written statement stating the effective date of discharge, whether the employer had a reason for the discharge, and if so, the reasons. The law did not change anything regarding an employee's right to inspect their personnel file.

In addition, the updated RCW 49.12.250 added a definition of former employee, which means a person who separated from the employer within three years of the date of the person's request.

Notably, there is now a private right of action if the employer fails to comply with the requirements of RCW 49.12.250(1), which entitles the employee to equitable relief, statutory damages, and reasonable attorneys' fees and costs. Prior to moving forward with enforcement, the employee or former employee must give a notice of intent to sue the employer that references that the employee or former employee has the right to bring a legal action. No cause of action arising under the failure to provide a complete personnel file may be commenced until five calendar days have elapsed after the notice of intent to sue is provided to the employer. Statutory damages are provided on a sliding scale and range from $250, $500, and $1,000 if the complete personnel file or the statement is not provided within 21, 28, or 35 days respectively. All other violations shall be $500.

Based on these changes, Washington employers should ensure their policies and procedures are compliant with these changes. It is imperative that any requests for employee personnel files and statements regarding the reason for termination are handled expeditiously and there is a streamlined process for handling them in order to avoid potential penalties.

Securing Timely Notification and Benefits for Laid off Employees Act

Washington's Securing Timely Notification and Benefits for Laid off Employees Act went into effect July 27, 2025. This law is similar to but also differs from the federal Worker Adjustment and Retraining Notification Act (WARN Act) in certain key ways, and increases employer responsibilities for laid off employees. Going forward, Washington employers with 50 or more employees should ensure that any contemplated layoffs or plant closures are in compliance with both the federal and state WARN laws.

The key provisions are:

• Smaller Businesses Covered: Employers with only 50 or more full-time employees in Washington State are subject to this statute's requirement.
   
• What Qualifies as a Mass Layoff: A qualifying mass layoff is one that impacts 50 full-time employees regardless of how many employees the employer has or where the employers are located.
   
• When You Must Give Notice: The law's provisions are triggered only if at least 50 employees are laid off within any 30-day period.
   
• Content of Notice: Washington employers must provide additional details in the written notices to employees and the applicable agencies including the addresses of the impacted employee, the anticipated duration of a temporary layoff, and whether the employer is relocating or contracting out its business.
   
• Employees on Paid Medical/Family Leave: Employees who are out on Washington's paid family or medical leave (under Title 50A RCW) cannot be included in a mass layoff unless exceptions like faltering company, unforeseeable business circumstances, or natural disaster apply. This rule does not affect business closings or employees on other types of leave.

The new law provides for private causes of actions for violations. The damages available include backpay up to 60 days, the value of the cost of any lost benefits, and reasonable attorneys' fees and costs. Washington's Employment Security Department can also issue civil penalties of up to $500 per day for failure to notify the state of a mass layoff.

Minimum Wage Updates

Default minimum wage: The minimum wage for Washington state applies to all employers, regardless of size. The state minimum wage for adults (18 years of age and older) is adjusted annually for inflation. As of January 1, 2026, the inflation-adjusted minimum wage rate, as calculated by the Department, is $17.13 per hour for non-exempt hourly employees. Exempt, salaried employees must be paid at least $1,541.70 a week ($80,168.40 a year).

However, certain governments have set higher minimum wages for the employees working in those regions, or for specific employees. If your employees fall into one of the following geographic or subject matter areas, you should ensure that you are paying them at least the higher of the two minimum wage levels:

• Seattle employees: Individuals working in Seattle must be paid a minimum of $21.30 per hour starting in 2026.
   
• SeaTac employees: Individuals working in SeaTac must be paid a minimum of $20.74 per hour starting in 2026.
   
• Tukwila employees: Individuals working in Tukwila must be paid a minimum of $21.65 per hour starting in 2026.
   
• Bellingham employees: Individuals working in Bellingham must be paid a minimum of $19.13 per hour starting in 2026.
   
• Burien employees: Individuals working in Burien must be paid a minimum of $19.13 per hour starting in 2026.
   
• Everett employees: Everett employees must be paid variable minimum wages based on the size of the employer and time of the year. For large employers (over 500 employees, including franchises under common control) the minimum wage is $20.77. For all employers with at least 15 employees and less than 500 employees, the minimum wage is $18.77 for January 1 through June 30, 2026, after which it will become $19.77.
   
• King County (unincorporated area) employees: King County, for those employees working in the unincorporated areas, also employs a variable minimum wage based on the size of the employer. For most employers the minimum wage is $20.82 per hour with the following exceptions. For employers with 15 or fewer employees and an annual gross revenue of less than $2 million, the minimum wage is only $18.32 per hour. For employers with EITHER 15 or fewer employees and an annual gross revenue of $2 million or more OR with more than 15 employees but fewer than 500 employees and a gross revenue of any amount, the minimum wage is $19.32 per hour.
   
• Renton employees: Renton employees must be paid variable minimum wages based on the size of the employer and time of the year. For large employers (over 500 employees worldwide and certain franchises) the minimum wage is $21.57. For all employers with at least 15 employees and either fewer than 500 employees or over $2 million of annual gross revenue in Renton, the minimum wage is $20.57 for January 1 through June 30, 2026, after which it will become $21.57.
   
• Rideshare drivers: For trips within Seattle in 2026, drivers will earn a minimum of 70 cents per passenger platform minute and $1.63 per passenger platform mile, or $6.12, whichever is greater. For trips outside of Seattle in 2026, drivers will earn a minimum of 40 cents per passenger platform minute and $1.38 per passenger platform mile, or $3.55, whichever is greater.
   
• Computer professionals: Certain computer professionals (that is, those who would otherwise be exempt as highly skilled professional) may be paid hourly in Washington as long as they are paid a minimum of $59.96 per hour.

Non-Compete Clauses

Starting in 2026, for a non-compete clause to be enforceable against an employee, the employee must earning at least $126,858.83 a year. For independent contractors, the 2026 threshold is be $317,147.09.

Paid Family and Medical Leave Protections

Amendments to Washington's Paid Family and Medical Leave Act (PFML) significantly alter key areas of the law, including changing how employees can stack different forms of job protected leave (under the federal Family and Medical Leave Act and PFML), expanding an employee's right to job restoration at the end of leave, altering an employee's right to continuation of health or other benefits while on leave, changing the minimum amount of leave that can be taken, changing employer notice requirements, use of sick leave for immigration proceedings and more.

Job Restoration Rights

Generally, most Washington employees can use paid family medical leave if they have worked at least 820 hours during the qualifying period for any Washington employer (even if not at their current employer). However, not all employees who use PFML benefits have job restoration rights at the end of their leave – that is, not all employees are guaranteed to be able to come back to their same job or another similar job. Previously, to have job restoration rights, an employee must have worked for a Washington employer with 50 or more employees and have worked at least 12 months for the employer and have worked at least 1,250 hours within the 12 months prior to the start of leave. However, recent changes eliminate the hours of work requirement to qualify for job restoration rights and also reduces the length of service requirement from 12 months to 180 calendar days. This expansion of job restoration rights will impact smaller employers in a phased approach, starting with employers who have 25 or more employees in 2026 with phasing occurring through 2028 as follows:

January 1, 2026 – December 31, 2026: Employers with 25+ employees

January 1, 2027 – December 31, 2027: Employers with 15+ employees

January 1, 2028 – Onward: Employers with 8+ employees

Stacking of Job Protected Leave:

Other changes address how employees can use their leave under the PMFL in conjunction with any leave they may have available under the federal Family and Medical Leave Act (FMLA). Although employers still cannot require employees to apply for PFML benefits, employers will now be able to count FMLA leave toward the total amount of leave entitled to job protection under the PFML if they provide written notice within five business days of the employee's initial request for use of FMLA leave and then monthly thereafter during the leave year. Previously, employers did not have the ability to count FMLA leave toward the total amount of leave an employee was entitled to under the PFML if the employee was not taking PFML concurrently with FMLA. The recent changes allow an employer to count leave taken under the FMLA against an employee's PFML job restoration period if they provide written notice to the employee within five business days of the employee's initial request for or use of FMLA leave and then monthly thereafter during the leave year. This is true even if the employee has not applied for and is not receiving PFML benefits.

Benefits Continuation Rights:

Employees' benefit continuation rights under PFML also changed. While benefits continuation rights were previously tied to at least one day of overlap between PFML and FMLA, the tie to FMLA is eliminated, and, instead, benefits continuation rights are tied to job restoration rights. As a result, health benefits must be continued for any period of PFML during which the employee is entitled to job protection.

Minimum Leave Duration:

The minimum duration of leave an employee can take also changed; as a result, employees may now take leave in smaller increments of use. Previously, PFML had to be taken in a minimum of eight consecutive hours. Now, PFML can be taken in a minimum of four consecutive hours increments.

Use for Immigration Proceedings:

Recent changes provide additional provisions related to employees and transportation network company drivers engaging in immigration-related hearings for themselves and/or family members. The law will allow the use of paid sick leave to prepare for, or participate in, any legal proceeding involving the employee, driver, or their family member. The person may be required to verify the reasons for using the sick leave, including a sign-off by appropriate professionals, but such documentation must not disclose any personally identifiable information about the person's immigration status or underlying immigration protection.

Employer Notice Requirements:

The recent changes also include contain several new employer notice provisions. This includes a requirement that the commissioner develop an employee rights notice to be distributed to employees who are absent due to family or medical leave.

Layoff Considerations:

As noted above, under Washington's Securing Timely Notification for Laid-Off Employees Act, employers may not include employees on PFML in layoffs, subject to certain narrow exceptions, including for unforeseen business circumstances and natural disasters. This rule does not affect business closings or employees on other types of leave.

Immigration Worker Status Protections:

Washington's Minimum Wage Act has been amended to protect employees from exploitation based on a worker's immigration status. Employers can be subject to civil penalties ranging from $1,000 to $20,000. Employers are prohibited from coercing an employee based on their immigration status in furtherance of the employer violating wage payment, conditions of labor, or agricultural labor requirements. Employees can file a complaint with Labor & Industries within 180 days of the alleged coercive action, and this time period may be extended under certain circumstances.

Domestic Violence Leave Act (Hate Crime Victims):

Employees who are victims of hate crimes are now protected by the Domestic Violence Leave Act. The Act has been amended to include protections for employees who are victims of hate crimes or whose family members are victims of hate crimes. Hate crime is defined as assault, damage, destruction of property, or the threat of violence because of a person's perception of another person's specific characteristics, including race, gender, or religion. This includes online conduct.

Similar to domestic violence leave, the leave is available for legal or law enforcement assistance and court proceedings, medical and psychological help, assistance from social services, safety planning, and relocation. Examples of safety procedure accommodations include a job transfer or reassignment, changing work telephone or email, or the implementation of safety procedures.

Healthy Starts Act (Pregnancy Accommodations):

Starting January 1, 2027, pregnancy-related accommodations for Washington employees will be expanded under the Healthy Starts Act. The recent amendments expand the definition of "employer" to include any employer that employs one or more persons and any religious or sectarian organization not organized for private profit (whereas previously, only employers with 15 or more employees were covered). In addition, the law also mandates that employers pay employees for break time and travel time to express milk as a reasonable accommodation (which is required two years after the birth of a child). Employers cannot require employees to use PTO during this time. Moreover, any break time to express milk must be provided in addition to meal and rest periods required by law.

Fair Chance Act (Consideration of Criminal Records):

Amendments to the Fair Chance Act prohibit employers from inquiring about criminal history and/or conducting a background check until after extending a job offer conditional on passing such a check; and even then, there are limits on how employers can now use the results of such a check. As of July 1, 2026 for most employers (or January 1, 2027, for employers with fewer than 15 employees) employers may not:

• Advertise or implement policies that exclude individuals with criminal records;
   
• Automatically exclude an individual from a position because they have a criminal record;
   
• Ask about an applicant's criminal background until the employer has (1) determined that the applicant is otherwise qualified and (2) made an offer of employment that is contingent on passing a background check;
   
• Reject an individual for not disclosing their criminal record before the conditional offer;
   
• Take adverse action based on a juvenile conviction or an arrest record that is found in a background check; or
   
• Take adverse action based on an adult conviction record found in a background check unless there is a "legitimate business reason" (this term is defined very narrowly) and without providing the individual notice and opportunity to respond.

If an employer wishes to take adverse action (such as withdrawing the job offer) based on the adult conviction record based on a legitimate business need, the employer must notify the individual of the intended adverse action, identify the information relied upon, and provide at least two business days for the individual to respond or provide mitigation information. If adverse action is taken, the employer must provide a written explanation detailing the reasoning and assessment of the relevant statutory factors and the employer's consideration of the applicant's rehabilitation, good conduct, work experience, education and training.
Statutory penalties under this law include up to $1,500 for a first violation, $3,000 for a second violation, and $15,000 for subsequent violation, per aggrieved party.

Driver's License Requirements and Job Postings

As of July 2025, unless driving is an essential function of the position an employer is hiring for or tied to a legitimate business purpose for a position, Washington employers are now prohibited from requiring a valid driver's license as a condition of employment or including a statement in a job posting that an applicant must have a valid driver's license.

Unemployment Benefits (Striking Workers)

Employees who are unemployed due to a strike or an employer-initiated lockout may now receive up to six weeks of unemployment insurance benefits.

Meal and Rest Breaks (Hospital Employees)

Certain hospital employees may voluntarily and mutually agree to waive a meal period if the shift is less than eight hours (or may waive the second and/or third meal period if a shift is eight hours or more) as long as the employee receives one meal period during their shift. Certain hospital employees may also waive the requirement that meal periods occur between hours two and five of a shift, as long as the employee takes a meal period between the third hour worked and no later than the second-to-last hour scheduled.

Unclaimed Property and Reimbursements

The abandonment period for employee reimbursements has been increased from one to three years. The reporting threshold is reduced to $5 and the due diligence notification requirement to $50.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.