LAW, POLITICS, AND POLICY IN OLYMPIA

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1 LAW, POLITICS, AND POLICY IN OLYMPIA A GLIMPSE AT THE 2014 STATE LEGISLATURE Kris Tefft, General Counsel Association of Washington Business SHRM Law & Legislative Conference March 28, 2014

2 QUICK NOTE ABOUT AWB State s Chamber of Commerce & Manufacturing & Tech Association Over 8,250 business members Members come from all areas of private sector Member services: Governmental affairs & lobbying representation Regulatory representation Legal & HR help and information Workers Compensation, Workplace Safety Programs Small employer health insurance

3 THE POLITICAL CLIMATE IN OLYMPIA

4 MAJOR LEGISLATIVE THEMES, 2014 Supplemental budget year Education funding Transportation funding Job creation, regulatory reform discussions

5 WHAT HAPPENED IN HR?

6 MANDATORY PAID SICK DAYS House Bill 1313 Similar to Seattle ordinance. Requires employers of more than 4 employees to provide an accrual of paid leave for Specified medical reasons Reasons for which leave may be taken under state law for domestic violence, sexual assault, or stalking Number of hours accrued depends upon employer size Tier 1, 4-49 FTEs, 1 hour/40 hours, up to 40 hours/year Tier 2, FTEs, 1 hour/40 hours, up to 56 hours/year Tier 3, 250+ FTEs, 1 hour/30 hours, up to 72 hours/year Accrued leave is carried over from year to year; silent as to cash-out.

7 MANDATORY VACATION DAYS House Bill 2238 Requires accrual of paid vacation leave for employees who work an average of 20 or more hours per week for employers with 25 or more employees. 6 month waiting period, then: 40 hours for subsequent 12-month period 60 hours for subsequent 12-month period 80 hours for each subsequent 12-month period After five years of employment, 120 hours accrue for each 12 months of employment Leave accrues on a pro rata basis each pay period.

8 MINIMUM WAGE INCREASE House Bill 2672 Would increase state s hourly minimum wage from $9.32/ hour to $10.00 hour in 2014; $11.00/hour in 2015; And $12.00/hour in 2016, indexed to inflation annually thereafter.

9 WAGE PAYMENT ISSUES House Bill 2332 Increases from double to triple the amount of damages available to a claimant in a wage payment dispute for willful withholding of wages House Bill 2333 Adds significant employer liability for retaliation to each major state employment statute.

10 INDEPENDENT CONTRACTORS VS. EMPLOYEES House Bill 2334 Enacts Employee Fair Classification Act. Presumes any individual providing a service is an employee unless employer can establish independent contractor relationship utilizing one of two new statutory definitions. House Bill 2477 Cracks down on the use of independent contractors in commercial janitorial services, requiring mandatory safety training and threatening janitorial firms retail sales tax exemption if independent contractors are utilized.

11 PUBLIC POLICY RETALIATION House Bill 2710 Creates and defines a statutory civil cause of action making it unlawful for an employer to take materially adverse action against an employee for conduct the employee reasonably believes promotes a clear mandate of public policy.

12 EMPLOYEE REIMBURSEMENT House Bill 2230 Requires an employer to reimburse an employee for all necessary business expenses incurred by the employee at the request of the employer and in direct consequence of the discharge of the employee s duties.

13 CRIMINAL BACKGROUND CHECKS House Bill 2545 Similar to City of Seattle Ordinance Prohibits an employer from inquiring about non-conviction information on any application for employment; Advertising job openings in a way that excludes people with non-conviction records from applying; or Implementing any policy that categorically excludes individuals with non-conviction records from employment. Excludes care of children or vulnerable adults, employers required to do so under federal law, or law enforcement positions.

14 RELIGION/CREED DISCRIMINATION Senate Bill 6433 Makes clear that the Washington Law Against Discrimination prohibits discrimination on the basis of creed, including failure to accommodate an individual s religion or creed. Conforms reasonable accommodation standard to federal Civil Rights Act, specifying an undue hardship excusing reasonable accommodation can be shown if the accommodation would impose more than a de minimis cost.

15 WAGE & HOUR SAFE HARBOR Senate Bill 5158 An employer in a wage payment dispute has a defense from liability if it can establish good faith reliance on policy, rule, guidance, or formal interpretation of Labor & Industries.

16 LOCAL WAGE/BENEFIT PREEMPTION Senate Bill 6037 Cities and counties cannot adopt or enforce ordinances or contracts requiring higher minimum wages, employee benefits, or labor relations than requirements established at the state level.

17 MINIMUM WAGE EXCEPTIONS FOR TEENS Senate Bill 6471 Would establish a summer employment wage for teens at the federal minimum wage. Senate Bill 6495 Would establish a temporary teen training wage at 85 percent of the state minimum wage.

18 WHERE TO FIND OUT MORE/GET INVOLVED More information: Get involved: Your trade association Your community group Get to know your legislators Build relationships & communicate!

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