SENATE BILL REPORT

EHB 2788

BYRepresentatives Jones, Smith, Vekich, Wolfe, Cole, Walker, R. King, Prentice and O'Brien; by request of Department of Labor and Industries

Authorizing civil penalties for violations of state wage payment laws.

House Committe on Commerce & Labor

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 14, 1990

Senate Staff:Jonathan Seib (786-7427)

AS OF FEBRUARY 12, 1990

BACKGROUND:

Under RCW 49.46, an employer who pays less than the state minimum wage, or otherwise violates the state minimum wage law, is guilty of a gross misdemeanor.  Under RCW 49.48, an employer who withholds or diverts wages due an employee or violates wage bond requirements is guilty of a misdemeanor.  Neither of these laws provides for civil penalties.

SUMMARY:

Upon finding that an employer has violated either RCW 49.46 or RCW 49.48, and in lieu of criminal penalties, the Department of Labor and Industries may impose civil penalties of not less than $1,000 or an amount equal to 20 percent of the wage violation, whichever is greater, plus interest of up to 1 1/2 percent per month for wages owed.  Notice and appeal procedures are provided.

Criminal penalties are to be pursued only if an employer willfully and knowingly withholds wages, or withholds wages of more than $10,000 from one employee or $25,000 from five or more employees.

Appropriation:    none

Revenue:    none

Fiscal Note:      available