Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Labor Committee

HB 1356

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.

Brief Description: Establishing minimum standards for sick and safe leave from employment.

Sponsors: Representatives Jinkins, Riccelli, S. Hunt, Farrell, Stanford, McBride, Cody, Tharinger, Goodman, Ortiz-Self, Sullivan, Bergquist, Pettigrew, Dunshee, Fitzgibbon, Peterson, Moscoso, Ryu, Appleton, Sells, Pollet, Robinson, Reykdal, Walkinshaw, Senn, Wylie, Ormsby, Lytton, Moeller, Kagi, Hansen, Hudgins, Tarleton, Sawyer, Fey, Gregerson, Gregory, Van De Wege, Kilduff, Blake, Kirby, Orwall and Clibborn.

Brief Summary of Bill

  • ŸRequires employers with more than four full-time equivalent employees to provide paid leave to employees for: (1) specified medical reasons relating to the employee's or a family member's health; (2) reasons permitted under existing law requiring unpaid leave for purposes related to domestic violence, sexual assault, and stalking; or (3) closure of the employee's place of business or child's school or place of care due to specified public health emergencies.

Hearing Date: 1/26/15

Staff: Joan Elgee (786-7106).

Background:

State and federal laws address leave from employment. These laws include the:Ÿ

The City of Seattle adopted an ordinance, effective October 1, 2012, requiring employers to provide paid sick and safe leave.

Summary of Bill:

Intent.

The Legislature finds that paid sick and safe leave is critical to the economic well-being of the state and workers and to public health and safety. A finding is also made that paid sick and safe leave helps workers maintain their own health and the health of others and helps victims of domestic violence, sexual assault, and stalking. Paid leave is important to helping women and achieving racial and gender equality. Further, paid sick and safe leave helps employers retain trained workers and operate competitively as well as ensures economic security for workers and their families.

Coverage.

Employees performing services in the state are covered, including temporary and part-time employees. However, an employee working in the state on an occasional basis is covered only if he or she works more than 240 hours in the state in a calendar year. Employees accrue and are entitled to use leave based on employer size. Employers with four or fewer full-time equivalent (FTE) employees are exempt.

The tier for a year is determined by the average number of FTEs paid per calendar week during the preceding year for weeks during which at least one employee worked for compensation. If an employer did not have employees during the previous year, the tier is determined by the average number of FTEs paid per calendar week during the first 90 days of the year the employer was in business. All compensated hours are counted, including part-time and temporary employment, and employment through a staffing agency or similar entity. Separate entities that form an integrated enterprise are a single employer for purposes of determining the tier.

Paid sick and safe leave requirements do not apply to any employees covered by a bona fide collective bargaining agreement to the extent the requirements are expressly waived in clear and unambiguous terms.

Accrual of Leave.

Employees accrue leave beginning January 1 following enactment. Minimum leave accrual, use and carry over are based on employer size.

Employer Tier

Hours worked to accrue hour of leave

Hour use per year

Carry-over

Tier 1

40

40

40

Tier 2

40

56

56

Tier 3

30

72

72

However, for a Tier 3 employer, the use per year and carry-over must be no less than 108 hours if the employer has a paid time off policy. An employer may front load leave, as long as the front loading meets or exceeds the requirements for accrual, use, and carry over of leave.

Employees exempt from overtime payment are not entitled to accrue leave for hours worked in excess of 40 in a work week.

For seasonal employees who are rehired by the same employer within seven months of separation, the employer must reinstate accrued and unused sick and safe leave.

Use of Leave.

Sick leave may be used:Ÿ

Safe leave may be used:

A 180-day waiting period after hire applies before an employee may use leave. For seasonal employees who separate and are rehired by the same employer within seven months, the previous period of employment counts for purposes of the 180-day requirement.

An employer must compensate an employee who uses sick and safe leave at the same hourly rate and with the same benefits as the employee would have earned during the time leave is taken. No compensation is required for lost tips or commissions and compensation is only required for hours that the employee was scheduled to work.

With the employer's consent, an employee may work additional hours or swap shifts instead of using leave.

Leave Requests and Documentation.

Requests.

An employer may require an employee to comply with the employer's usual and customary notice and procedural requirements for requesting leave, so long as they do not interfere with the purposes for which leave is requested. If the leave is foreseeable, the employee must make a reasonable effort to schedule the leave so as not to unduly disrupt the employer's operations, must make the request in writing, and must make the request at least 10 days before the leave, or as early as possible, unless the employer's usual and customary policy provides for shorter notice. For unforeseeable leave, the employee must give notice as soon as practicable and must comply with the usual and customary notice and procedural requirements so long as they do not interfere with the purposes for which leave is needed.

Documentation and Verification.

An employer may require reasonable documentation for use of more than three consecutive days of sick time. Documentation signed by a health care provider is reasonable. The employer and employee split the cost of any out-of-pocket expense of obtaining the documentation. An employer also may require reasonable verification for use of more than three consecutive days of safe time, and methods of satisfying the verification requirement are specified.

Records.

When an employer pays an employee, the employer must provide information in writing stating an updated amount of sick and safe leave available. Employers may choose a reasonable system, including listing time on each pay stub or providing an on-line system. Employers must maintain records regarding leave for three years. If an employer does not have adequate records, or does not allow reasonable access, it is presumed that the employer violated the requirements. With some exceptions, an employer must maintain the confidentiality of information provided by the employee or others in support of a request for leave.

Notice.

Tier 1, 2, and 3 employers must notify employees about the requirements of the law. Employers may comply by providing the information in English and in any language that is the first language spoken by at least 5 percent of the employer's workforce either on a notice to each of the employees or on a poster displayed in a conspicuous and accessible place. The Department of Labor and Industries (Department) must create and make available posters.

Retaliation.

An employer may not discharge, demote, take other listed actions, or otherwise discriminate against an employee because the employee exercised rights, used sick and safe leave, filed a complaint or communicated an intent to file a complaint, or participated or assisted in another employee's attempt to exercise the employee's rights under the sick and safe leave law.

Enforcement.

Administrative and judicial remedies are provided. The Director of the Department (Director) must investigate complaints and may investigate if the Director obtains information that a violation may have occurred. If the Director finds a violation, the Director must try to settle. If an agreement cannot be reached, the Director must issue a notice of infraction and may order appropriate relief, including damages (including back pay), payment of any sick or safe leave unlawfully withheld, and liquidated damages of three times the dollar amount of the leave withheld or $250, whichever is greater. If the violation resulted in other harm to the employee or other person, or otherwise violated the rights of employees or other persons, such as a failure to provide notice or retaliation, the Director may order liquidated damages of $50 per day to each employee or person whose rights were violated. The Director may also order no more than $50 for each day and for each person or employee whose rights were violated to compensate the Department attorney's fees and costs, and equitable relief, including reinstatement. For a willful violation of the notice requirements, the Director may impose a civil penalty not to exceed $125 for the first violation and $250 for subsequent violations.

The Department and any person aggrieved, any entity a member of which is aggrieved, or any other person or entity acting on behalf of the public health and welfare may bring a civil action against any person violating the sick and safe leave requirements. The court may order appropriate relief, including the relief the Director may order, except that any person or entity acting on behalf of the public health and welfare is not entitled to liquidated damages. The court must award reasonable attorneys' fees and costs to the party bringing the civil action if the party prevails.

Other.

The Department has rule-making authority. The sick and safe leave requirements do not preempt any other laws or standards that provide for greater accrual or use by employees of sick or safe leave. The requirements are not intended to discourage employers from adopting or retaining more generous policies or to diminish the obligation of any employer to comply with any agreement providing more generous sick and safe leave.

Definitions are provided, including for "full-time equivalent," "health care provider," and the various family members.

Appropriation: None.

Fiscal Note: Requested on January 20, 2015.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.