AN ACT Relating to penalties for violations of minimum wage laws; amending RCW 49.46.100 and 49.48.020; creating a new section; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The Washington state minimum wage law and wage claim laws do not authorize imposition of civil penalties against violators. In order to improve compliance, the department of labor and industries should be allowed to assess fines against employers who fail to comply with chapters 49.46 and 49.48 RCW.

Sec. 2. Section 10, chapter 294, Laws of 1959 and RCW 49.46.100 are each amended to read as follows:

(1) Any employer who hinders or delays the director or ((~~his~~)) the director's authorized representatives in the performance of ((~~his~~)) the director's duties in the enforcement of this chapter, or refuses to admit the director or ((~~his~~)) the director's authorized representatives to any place of employment, or fails to make, keep, and preserve any records as required under the provisions of this chapter, or falsifies any such record, or refuses to make any record accessible to the director or ((~~his~~)) the director's authorized representatives upon demand, or refuses to furnish a sworn statement of such record or any other information required for the proper enforcement of this chapter to the director or ((~~his~~)) the director's authorized representatives upon demand, or pays or agrees to pay wages at a rate less than the rate applicable under this chapter, or otherwise violates any provision of this chapter or of any regulation issued under this chapter shall be deemed in violation of this chapter and shall, upon conviction therefor, be guilty of a gross misdemeanor.

(2) Any employer who discharges or in any other manner discriminates against any employee because such employee has made any complaint to his or her employer, to the director, or his or her authorized representatives that he or she has not been paid wages in accordance with the provisions of this chapter, or that the employer has violated any provision of this chapter, or because such employee has caused to be instituted or is about to cause to be instituted any proceeding under or related to this chapter, or because such employee has testified or is about to testify in any such proceeding shall be deemed in violation of this chapter and shall, upon conviction therefor, be guilty of a gross misdemeanor.

(3) (a) In addition to the penalties authorized in subsections (1) and (2) of this section, upon finding that an employer has violated this chapter or any rule or order issued under this chapter, the department may impose civil penalties of up to one thousand dollars a day for each day a violation occurs and interest of up to one and one-half percent per month for wages owed.

(b) To impose the penalties authorized under this subsection, the department shall issue the employer a written notice describing the nature of the violation, the rules, regulation, or order violated, a statement of the penalty imposed by the department, and a statement informing the employer of the right to a hearing conducted under chapter 34.05 RCW.

(c) Any person, firm, or corporation feeling aggrieved of any action taken or decision made by an officer or employee of the department in the enforcement of the minimum wage act may appeal such action or decision to the director by filing notice of such appeal with the director within thirty days of such action or decision.

Upon receipt of appeals, hearings shall be held in accordance with chapter 34.05 RCW. The director shall issue all final orders after the hearings. The final orders are subject to appeal in accordance with chapter 34.05 RCW. Orders not appealed within the specified time period are final and binding.

Sec. 3. Section 2, chapter 128, Laws of 1888 as last amended by section 2, chapter 55, Laws of 1971 ex. sess. and RCW 49.48.020 are each amended to read as follows:

(1) Any person, firm, or corporation which violates any of the provisions of RCW 49.48.010 through 49.48.030 and 49.48.060 shall be guilty of a misdemeanor.

(2) (a) In addition to the penalties authorized in subsection (1) of this section, upon finding that an employer has violated any of the provisions of RCW 49.48.010 through 49.48.030 and 49.48.060 or any rule or order issued under these sections, the department may impose civil penalties of up to one thousand dollars a day for each day a violation occurs and interest of up to one and one-half percent per month for wages owed.

(b) To impose the penalties authorized by this subsection, the department shall issue the employer a written notice describing the nature of the violation, the rules, regulation, or order violated, a statement of the penalty imposed by the department, and a statement informing the employer of the right to a hearing conducted under chapter 34.05 RCW.

(c) Any person, firm, or corporation feeling aggrieved of any action taken or decision made by an officer or employee of the department in the enforcement of chapter 49.48 RCW may appeal such action or decision to the director by filing notice of such appeal with the director within thirty days of such notice or decision.