WSR 18-07-092

PREPROPOSAL STATEMENT OF INQUIRY

[Filed March 20, 2018, 11:27 a.m.]

Subject of Possible Rule Making: Chapter 296-128 WAC, Minimum wages.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 49.46.005, 49.46.010, 49.46.120, and chapter 49.46 RCW.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Most employees covered by the Washington Minimum Wage Act must be provided a minimum wage, overtime for working above forty hours in a seven-day workweek, and paid sick leave. The Minimum Wage Act exempts some workers from these requirements. RCW 49.46.010 (3)(c) exempts any individual "employed in a bona fide executive, administrative, or professional capacity or in the capacity of outside salesperson as those terms are defined and delimited by rules of the director [of the department of Labor & Industries (L&I)]." The department promulgated rules in 1976 for the executive, administrative, professional, and outside salesperson exemptions, defining salary thresholds and duties tests for an employee to be considered exempt from the Minimum Wage Act under RCW 49.46.010 (3)(c). The department later promulgated an additional professional computer employees exemption, WAC 296-128-535, and other clarifying rules in chapter 296-128 WAC, which could be subject to revisions during this rule making.

These exemption rules have been largely untouched since 1976, and currently exempt more workers than originally intended. Updating the rules would restore appropriate function to the exemption rules.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The United States Department of Labor (U.S. DOL) administers the federal Fair Labor Standards Act and regulates federal minimum wage and overtime requirements, including similar exemptions. Any needed coordination will be done by the department through review of U.S. DOL regulations and guidance.

Process for Developing New Rule: The department will develop the rule language with input from interested parties. For more information on this rule making, visit L&I's web site at www.lni.wa.gov or contact the individual below.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Joshua Grice, P.O. Box 44000, phone 360-902-6711, fax 360-902-5300, TTY 1-800-833-6388, email EAPRules@lni.wa.gov, web site www.lni.wa.gov.

March 20, 2018

Joel Sacks

Director