AN ACT Relating to employee wage deductions; and amending RCW 49.48.010 and 49.52.060.

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

Sec. 1. Section 1, chapter 128, Laws of 1888 as last amended by section 1, chapter 55, Laws of 1971 ex. sess. and RCW 49.48.010 are each amended to read as follows:

When any employee shall cease to work for an employer, whether by discharge or by voluntary withdrawal, the wages due him on account of his employment shall be paid to him at the end of the established pay period: PROVIDED, HOWEVER, That this paragraph shall not apply when workers are engaged in an employment that normally involves working for several employers in the same industry interchangeably, and the several employers or some of them cooperate to establish a plan for the weekly payment of wages at a central place or places and in accordance with a unified schedule of paydays providing for at least one payday each week; but this subsection shall not apply to any such plan until ten days after notice of their intention to set up such a plan shall have been given to the director of labor and industries by the employers who cooperate to establish the plan; and having once been established, no such plan can be abandoned except after notice of their intention to abandon such plan has been given to the director of labor and industries by the employers intending to abandon the plan: PROVIDED FURTHER, That the duty to pay an employee forthwith shall not apply if the labor-management agreement under which the employee has been employed provides otherwise.

It shall be unlawful for any employer to withhold or divert any portion of an employee's wages unless the withholding, deduction, or diversion is:

(1) ((~~Required by state or federal law; or~~

~~(2) Specifically agreed upon orally or in writing by the employee and employer; or~~

(3) For medical, surgical or hospital care or service, pursuant to any rule or regulation: PROVIDED, HOWEVER, That the deduction is openly, clearly and in due course recorded in the employer's books and records.)) Openly, clearly, and in due course recorded in the employer's books; and

(2) Made for one of the following purposes:

(a) To comply with, or when authorized by, state or federal law or regulation; or

(b) To implement an employee's express written authorization, provided the authorized deduction or diversion is made for a lawful purpose; or

(c) To pay for health insurance coverage, or pursuant to a medical, dental, surgical, hospital, or other health care plan, provided the employee is notified of the financial obligation before incurring any such expense; or

(d) To correct an undisputed overpayment of wages caused by incorrectly reported time, miscalculation, or other error, provided that any such deduction shall be subject to the exemptions provided for in RCW 6.27.150(1).

((~~Paragraph three of~~)) This section shall not be construed to affect the right of any employer or former employer to sue upon or collect any debt owed to said employer or former employer by his employees or former employees.

Sec. 2. Section 2, chapter 195, Laws of 1939 and RCW 49.52.060 are each amended to read as follows:

The provisions of RCW 49.52.050 shall not make it unlawful for an employer to withhold, deduct, or divert any portion of an employee's wages ((when required or empowered so to do by state or federal law or when a deduction has been expressly authorized in writing in advance by the employee for a lawful purpose accruing to the benefit of such employee nor shall the provisions of RCW 49.52.050 make it unlawful for an employer to withhold deductions for medical, surgical, or hospital care or service, pursuant to any rule or regulation: PROVIDED, That the employer derives no financial benefit from such deduction and the same is openly, clearly and in due course recorded in the employer's books)), provided the withholding, deduction, or diversion is:

(1) Openly, clearly, and in due course recorded in the employer's books; and

(2) Made for one of the following purposes:

(a) To comply with, or when authorized by, state or federal law or regulation; or

(b) To implement an employee's express written authorization, provided the authorized withholding, deduction, or diversion is made for a lawful purpose; or

(c) To pay for health insurance coverage, or medical, dental, surgical, hospital, or other health care service, provided the employee is notified of the financial obligation before incurring any such expense; or

This section shall not be construed to affect the right of any employer or former employer to collect or sue upon any debt owed to said employer or former employer by its employee or former employee.