SENATE BILL REPORT

HB 2391

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Government Operations & Security, February 22, 2016

Title: An act relating to county payroll draw days.

Brief Description: Concerning county payroll draw days.

Sponsors: Representatives McCabe, Appleton, Griffey, Tharinger, Springer, Peterson, McBride, Manweller, Johnson, Reykdal, Chandler, Fitzgibbon, Dent, Kochmar, Wilcox, Pike and Moscoso.

Brief History: Passed House: 2/11/16, 96-0.

Committee Activity: Government Operations & Security: 2/18/16, 2/22/16 [DP].

SENATE COMMITTEE ON GOVERNMENT OPERATIONS & SECURITY

Majority Report: Do pass.

Signed by Senators Roach, Chair; Pearson, Vice Chair; Habib, McCoy and Takko.

Staff: Alex Kearns (786-7416)

Background: Counties may set weekly, bi-weekly, semi-monthly, or monthly pay period schedules.

If a county chooses a semi-monthly pay period schedule it may choose one of two forms: in the first form, the pay periods are the first to the fifteenth of each month, and the sixteenth to the last day of the month; in the second form, a "draw day" is established during the first pay period at which time the employee may receive no more than 40 percent of that employee's monthly salary. A county that chooses a monthly pay period schedule may also establish a draw day, which must occur no later than the last day of the month. Under current Washington law, payroll deductions are not deducted from draw day paychecks.

Under federal law, when an employer pays an employee for a regular or miscellaneous pay period that employer is required to apply payroll deductions to those wages.

Summary of Bill: The portion of the law allowing draw day payments to be taken without payroll deductions is removed. Additionally, the limit for draw day payments is increased from forty percent of an employee's monthly salary to fifty percent of an employee's monthly salary.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: This bill simply aligns state and federal law.

Persons Testifying: PRO: Representative McCabe, Prime Sponsor; Kevin Bouchey, Yakima County Commissioner.

Persons Signed In To Testify But Not Testifying: No one.