Dear Business:

• Have you ever been confused by state regulations?
• Are you unsure if you’re fully in compliance and up-to-date?
• Do you know your Paid Family and Medical Leave tax responsibilities?
• Want to avoid paying penalties?

We’re here to help!

Come to a workshop with business-friendly representatives from the Washington State Departments of Revenue, Employment Security, Labor & Industries, and the Governor’s Office of Regulatory Innovation and Assistance. They’ve teamed up to bring important information to businesses.

Learn:

• Regulation updates
• Valuable programs & services
• A one-stop website
• Best practices & tips for success

Bring:

• Questions
• Pain points
• Suggestions

Wednesday, August 21, 2019!

10 a.m. to noon La Quinta Inn by Wyndham 1425 E 27th St, Tacoma, WA 98421

Register now on Eventbrite 

Complimentary registration. Limited seating.

QUESTIONS:

• Rafael Colón, ESD, 360-902-9540
• Cindy Autuchovich, DOR, 360-705-6634
• Andrew Bryan, L&I, 800-987-0145

2019 Washington Small Business Fair

Renton Technical College

One day.  One place. 

Learn what you need to start or grow your business.

Please join us on September 21, 2019 for the 23rd annual Biz Fair at Renton Technical College to learn from the experts how to start or grow a successful business.

Biz Fair is the longest running all government and non-profit-run small business fair in Washington State.  And it's free!  Event highlights include a small business panel, a free resource center, and 20 different workshops available throughout the day.

Download the brochure, preview the schedule, and check out the Biz Fair blog at www.bizfair.org.

Legislative Changes:  Isolated Worker Protections

A new law, SB 5258 – Preventing Sexual Harassment/Assault of Isolated Workers, goes into effect January 1, 2020.

It affects employers in these industries:

• Hotel 
• Motel
• Retail
• Security Guard Services
• Property Services Contractor (including Commercial Janitorial Services)

An isolated worker is an employee who spends a majority of her/his working hours alone, or whose primary work responsibility involves working without another coworker present.

Employers with isolated workers are required to:

1. Adopt a sexual harassment policy
2. Provide mandatory training to managers, supervisors, and employees
3. Provide a list of resources for employees to use (the list should at least include contact information for the Equal Employment Opportunity Commission, WA State Human Rights Commission, and local advocacy groups focused on sexual harassment/assault prevention)
4. Provide a panic button to each employee (does not apply to contracted security guard companies or employers with 50 or fewer employees)

Property services contractors (including commercial janitorial services) must submit to Labor & Industries:

1. Date of adoption of a sexual harassment policy
2. Number of managers, supervisors, and employees trained
3. Physical address of the work location(s) at which janitorial services are provided by workers, and for each location:
   • Total number of workers or contractors who perform janitorial services
   • Total hours worked

Effective Dates:

• January 1, 2020 – Hotels and motels with 60 or more rooms
• January 1, 2021 – Smaller hotels and motels and all other employers listed above

To review the rule in its entirety, please see SB 5258 at:

http://lawfilesext.leg.wa.gov/biennium/2019-20/Pdf/Bills/Senate%20Passed%20Legislature/5258-S.PL.pdf

Legislative Changes:  Salary History Restrictions

A new law, HB 1696 – Prohibiting Employers from Requiring Salary History from Job Candidates, went into effect May 9, 2019.

It affects all employers.

When hiring an employee:

• Employers may not:
  • Ask for wage or salary history from an applicant or from a current or former employer
  • Require that an applicant’s prior wage or salary history meet certain criteria

• Employers may:  
  • Confirm an applicant’s wage or salary history if an applicant voluntarily discloses it, after the employer has negotiated and made an offer of employment with compensation to the applicant

Requirements for employers with 15 or more employees:

• Employers must provide, upon request of an applicant:
  • Minimum wage or salary for the position the applicant is applying for, after the employer has offered the position
  • Wage scale or salary range for an employee’s new position in situations of internal transfers or promotions
  • Minimum wage or salary expectation set by employer prior to posting the position if no wage scale or salary range exists

To review the rule in its entirety, please see HB 1696 at: 

http://lawfilesext.leg.wa.gov/biennium/2019-20/Pdf/Bills/House%20Passed%20Legislature/1696-S.PL.pdf

Policy Spotlight

Tips, Gratuities, and Service Charges

Effective March 6, 2019

L&I recently issued policy guidance on tips, gratuities, and service charges. This is a summary of key parts of the new policy, but if you are in an affected business we recommend you read the full policy.

Tips and gratuities definition:

• Amounts freely given by a customer to an employee

Requirements/Restrictions:

• All tips and gratuities intended for the employee must go to the employee
• Employers may not use any tips and gratuities due to an employee for any purpose other than overseeing a valid tip pool for qualifying employees
• Employers may have a policy prohibiting employees from accepting tips and gratuities, but may not confiscate them if a customer breaks this policy

Tip Pools:

• Employers may establish a tip pool amongst employees
• Tip pools may not include individuals who are exempt from the definition of “employee” under RCW 49.46.010(3)
  • For example, managerial or supervisory workers exempt from the Minimum Wage Act may not be part of a tip pool
  • Employers, managers, or supervisors may accept tips only for services they directly provide
• Employers may administer employee-established tip agreements

Service charge definitions:

• A type of automatic charge added to a customer’s bill for services related to food, beverages, entertainment, or porterage
• A separately-designated amount collected from customers described in such a way that the customer might reasonably believe the charge is for the service provided by an employee

Requirements/Restrictions:

• Employers must disclose the percentage of the service charge that is paid to the employee(s) serving the customer
• Disclosure must appear in an itemized receipt and in any menu provided to the customer.
  • An example disclosure statement: “A service charge of % / $ will be added to your bill. __% of this service charge is paid to the employee or employees who served you today”
• If any portion is not clearly labeled as the employer’s, it must go to the employee(s) serving the customer
• Employees who serve customers, excluding managerial or supervisory workers, must be paid their service charge portion

Recordkeeping requirements:

• All compensation per pay period for each employee must be recorded, including tips, gratuities, and employee portion of service charges

Payment of tips, gratuities, and employee portions of service charges:

• May be retained directly by the employee
• If received by the employer (for example, tips paid by credit card), these payments are due to the employee no later than when wages earned in that same period are paid

Deductions of tips, gratuities, and employee portions of service charges:

• Employers may reduce the amount paid to the employee up to the credit/debit card transactional fee (the prorated percentage of amount charged by third party processor), but may not reduce the amount more than this fee (other than withholding required federal taxes – see IRS guidance)
• Cash register shortages or other business expenses may not be deducted from what is paid to employee

Paid sick leave compensation only covers normal hourly wages and does not include tips, gratuities, or service charges.

Tips, gratuities, and service charges do not count toward the employee’s hourly minimum wage. Employees must receive the full minimum wage.

If differences between any applicable federal, state, or local laws, rules, regulations, or ordinances exist, the standard that is more favorable or more protective to the employee is applied.

To review the policy in its entirety, please see: 

https://www.lni.wa.gov/WorkplaceRights/files/policies/esa12.pdf

Reporting for Paid Family and Medical Leave is Now Open!

The timeline for Q1 and Q2 reporting has been extended to August 31, 2019.

Visit the Employment Security Department's Washington Paid Family & Medical Leave Reporting page for more details.