Summary of Bill:

Paid vacation leave requirements are established.

Employers covered are all private and public employers with ten or more employees. School districts, community and technical colleges, and institutions of higher education are exempt.

Coverage. Most employees of covered employers are covered, including part-time employees. Temporary employees who work for an employer for less than six months do not accrue leave. However, if an employee is rehired by the employer within seven months, time worked previously counts for purposes of leave accrual and unused leave must be reinstated. Persons who work in Washington on an occasional basis are covered if they work 240 hours a year or more in the state. Employees are not covered if the requirements are expressly waived in a collective bargaining agreement in clear and unambiguous terms.

Accrual. Employees accrue two hours leave for every 40 hours worked, after working for an employer for six months. Leave accrues on a pro rata basis at each pay period and for employees who work less than 40 hours per week.

Use of Leave. An employer must grant the leave requested if the employee follows the employer's written policy or, if the employer does not have a written policy, upon the employee's request, unless the employer demonstrates business necessity. An employer may require up to 12 months employment before an employee may request leave.

Compensation. Compensation for vacation lave must be at the same pay and with the same benefits as the employee would have earned during the time leave is taken. No cash-out is required.

Enforcement. Upon complaint, the Director of the Department of Labor and Industries (Department) may investigate and issue a notice of infraction if a violation occurred. The Director may order an employer to comply with the law and may also impose a civil penalty of $500 for a first violation and $1,000 for a subsequent violation, as well as require compensation to the Department. Retaliation for filing a complaint and for other actions is prohibited. The Department has rule-making authority.

Recordkeeping/Notice. Employers must provide current information to each employee on accrued and available leave. Any system may be used, including an online system. Employers must also give notice to employees about paid vacation leave by displaying a poster or giving notice to each employee. The notice must be in English and any language spoken by at least 5 percent of the employer's workforce. The Department's next reprinting of employment posters must include paid vacation leave.

Other Laws/Policies. The leave requirement is a minimum and is not intended to discourage or prohibit more generous policies or to diminish an employer’s obligation to comply with any more generous leave. The provisions do not preempt any requirements, including local ordinances, that provide for greater leave or other employee protections.

Study. The Washington State Institute for Public Policy (WSIPP) must evaluate the impact of the requirements on the state’s economy and the health and well-being of employees. The study must include a survey of employers and employees. The Department must cooperate with the WSIPP. In addition, the WSIPP must study the feasibility of the Department or another agency offering a commercial, nonproprietary, online system for tracking vacation leave. The WSIPP must submit a report to the Legislature by December 1, 2018 on its evaluation of the requirements and recommendations on an online system.