HOUSE BILL REPORT
ESSB 5023
As Reported by House Committee On:
Labor & Workplace Standards
Appropriations
Title: An act relating to providing labor market protections for domestic workers.
Brief Description: Providing labor market protections for domestic workers.
Sponsors: Senate Committee on Labor & Commerce (originally sponsored by Senators Saldaña, Trudeau, Conway, Frame, Nobles, Salomon, Stanford, Valdez, Wellman and Wilson, C.).
Brief History:
Committee Activity:
Labor & Workplace Standards: 3/18/25, 3/28/25 [DP];
Appropriations: 4/5/25, 4/7/25 [DPA].
Brief Summary of Engrossed Substitute Bill
(As Amended by Committee)
  • Establishes employment and labor protections for domestic workers, including employees and independent contractors working as nannies, house cleaners, home care workers, cooks, gardeners, and household managers.
  • Allows a domestic worker to seek remedies for violations by filing an administrative complaint with the Department of Labor and Industries (L&I) and/or a private cause of action.
  • Requires L&I to study models for domestic workers to access workers' compensation coverage.
HOUSE COMMITTEE ON LABOR & WORKPLACE STANDARDS
Majority Report: Do pass.Signed by 6 members:Representatives Berry, Chair; Fosse, Vice Chair; Scott, Vice Chair; Bronoske, Obras and Ortiz-Self.
Minority Report: Do not pass.Signed by 3 members:Representatives Schmidt, Ranking Minority Member; Ybarra, Assistant Ranking Minority Member; McEntire.
Staff: Kelly Leonard (786-7147).
Background:

Employment and Labor Standards.

State law contains various labor and employment requirements and protections for employees, some of which have general application while others apply to specific industries.  Some labor and employment standards contain specific exemptions for domestic workers or laborers working in and about private residences, depending on the circumstances.

 

Minimum Wage Act.  The Minimum Wage Act (MWA) establishes a statewide minimum hourly wage, requires overtime pay for employees, provides for paid sick leave, and provides for other employment standards, and the Wage Payment Act (WPA) provides for administrative or court action to collect wages under the MWA and other wage laws.  The current statewide hourly minimum wage is $16.66, which is adjusted annually for inflation by the Department of Labor and Industries (L&I).  Overtime pay must be at least 1.5 times the employee's regular hourly rate, and employees cannot waive their right to overtime pay.  It is unlawful to make certain deductions from wages and to fail to pay wages.  Employers must provide employees with at least one hour of paid sick leave for every 40 hours worked.  L&I may inspect places of business, investigate, and gather data regarding wages, hours, and other conditions and practices.  It is a gross misdemeanor for an employer to discriminate against an employee because the employee complained to the employer or L&I that the MWA has been violated, or because the employee was involved in a proceeding related to the MWA.

 

Certain workers are exempt from the MWA, including, among others:

  • persons whose duties required they sleep or reside at their place of employment or persons who otherwise spend a substantial portion of their work time subject to call and not engaged in the performance of active duties; and
  • persons employed in casual labor in or about private homes, unless the work is performed in the course of the employer's trade, business, or profession.  

 

Hours of Labor.  State law makes it a gross misdemeanor for an employer to employ a household or domestic employee for longer than 60 hours in any week, which includes any time when the employee has to remain subject to the call of the employer and when the employee is not free to follow his or her inclinations. 

 

Industrial Welfare Act.  The Industrial Welfare Act (IWA) directs L&I to adopt rules governing meal and rest periods.  Employers must provide all employees with meal and rest periods, as follows:

  • a 30-minute meal period between the second and fifth hour of work for an employee working more than five hours;
  • a second 30-minute meal period within five hours of the end of the first meal period, and for each five hours worked thereafter;
  • a meal period before or during the overtime portion of a shift for an employee working at least three hours longer than a normal workday; and
  • a 10-minute paid rest period for each four hours of working time. 

 

An employer is not required to pay an employee for a meal period if the employee is completely relieved from duty and receives at least 30 minutes of uninterrupted break time.  Rest breaks are considered compensable hours worked at the employee's agreed wage rate.  An employer may never deduct from an employee's hours worked for time spent on lawful rest breaks.

 

The IWA does not apply to domestic or causal labor in or about private residences.

 

Washington Law Against Discrimination.  The Washington Law Against Discrimination (WLAD) prohibits discrimination in employment based on the person's protected status, such as race, creed, color, national origin, sex, disability, and other protected categories.  The WLAD applies to employers who employ eight or more persons and does not include any nonprofit religious or sectarian organization.  An aggrieved person may file a complaint with the Human Rights Commission (HRC) or may file a private cause of action in court.

 

Workers' Compensation.  Workers who are injured or disabled in the course of employment are entitled to certain benefits through the workers' compensation program, administered by L&I.  Benefits may include medical costs, temporary time-loss, vocational rehabilitation benefits, and permanent disabilities benefits.  Any person employed as a domestic servant in a private home by an employer who has less than two employees regularly employed 40 or more hours a week or employed to do gardening, maintenance, or repair, in or about the private home is excluded from workers' compensation.

 

Employment Relationships.

 

State employment and labor laws generally apply to employers and employees.

 

Independent Contractors.  Under certain circumstances, a person or entity may pay another person or entity for services without forming an employment relationship.  For example, a bona fide independent contractor is exempt from the MWA.  Certain factors determine whether a worker is an employee or independent contractor under the MWA, including:  the degree of control that the person or business has over the worker; the worker's opportunity for profit or loss is dependent on the worker's managerial skill; the worker's investment in equipment or material; the degree of skill required for the job; and the degree to which the services rendered by the worker are an integral part of the other person's business.

 

Joint Employment.  Under the concept of joint employment, more than one entity may share in the legal responsibility for employees.  Depending on the applicable employment or labor law, a common law test may apply to determine if joint employment exists.  These tests generally include a fact-specific analysis to address the extent to which an entity exercises control over a workplace and the employees.  For example, when assessing liability under the MWA, the court applies the joint employer doctrine for evaluating a particular entity's liability with respect to a worker.  The court evaluates a list of nonexclusive factors, which includes, for example:  the nature and degree of control over the workers; the degree of supervision, direct or indirect, of the work; the power to determine the pay rates or the methods of payment of the workers; the right, directly or indirectly, to hire, fire, or modify the employment conditions of the workers; preparation of payroll and the payment of wages; whether responsibility under the contracts between a labor contractor and an employer pass from one labor contractor to another without material changes; whether the employees had a business organization that shifted as a unit from one worksite to another; and whether there was permanence in the working relationship.

Summary of Bill:

Domestic Worker Protections

The Legislature declares that health, safety, wage protections, and general welfare are guaranteed for domestic workers, and then establishes separate protections for domestic workers.  Applicable federal, state, and local laws that are more favorable to domestic workers than those in the bill are not affected and still apply to domestic workers.

 

A "domestic worker" includes hourly and salaried employees and includes any worker who: works for one or more hiring entities; and works in residences as a nanny, house cleaner, home care worker, cook, gardener, or household manager, or for other domestic service purposes, which includes services related to the care of persons in private homes or the maintenance of private homes or their premises.

 

A "domestic worker" does not include:  persons who provide babysitting on a casual labor basis; persons who perform house sitting, pet sitting, and dog walking duties that do not involve domestic service; any individual in a family relationship with the hiring entity; certain providers of long-term care who contract with the Department of Social and Health Services; casual laborers who perform irregular, uncertain, and incidental work in or about a private home that is different from the laborer's customary work, unless employed by a hiring entity for work performed in the course of the hiring entity's trade, business, or profession.

 

A "hiring entity" includes:

  • any employer who employs a domestic worker;
  • any individual, partnership, association, corporation, or business trust that pays a wage or pays wages for the services of a domestic worker; 
  • any individual, partnership, association, corporation, business trust, or group of persons that provides compensation directly or indirectly to a domestic worker; and
  • any individual, partnership, association, corporation, business trust, or group of persons acting directly or indirectly in the interest of the hiring entity in relation to the domestic worker. 

 

A home care agency is not a hiring entity if it receives certain public funds.

 

Where more than one hiring entity has an employment relationship with a domestic worker in connection with work at the same location, the hiring entities are subject to liability as well as concurrent fines and penalties for violations under the bill.  Any state agency that does not contract with or employ domestic workers in the ordinary course of business is not subject to liability, unless that state agency directly interferes with the rights established for domestic workers.

 

A hiring entity employing a domestic worker must:

  • pay domestic workers at least the minimum hourly wage, as defined under the MWA, and overtime wages for hours worked in excess of 40 hours per work week, both of which may be enforced through the WPA;
  • allow for 30-minute uninterrupted meal periods if the domestic worker works five or more hours, which must be on the hiring entity's time if the worker is required to remain on duty;
  • allow for 10-minute uninterrupted rest periods if the domestic worker works more than three hours, which must be on the hiring entity's time;
  • permit the domestic worker to cook and consume the domestic worker's own food, with reasonable restrictions allowed, for domestic workers living in the home of their hiring entity;
  • allow the worker to retain personal effects, including legal documents, forms of identification, passports, and other immigration documents; and
  • keep and maintain records documenting hours worked, pay rate, and if applicable, the leave time earned and used.

 

A hiring entity may not:

  • request that a domestic worker allow the hiring entity to take possession of the worker's personal effects, including any legal documents such as passports or other forms of identification;
  • subject a domestic worker to conduct that creates an intimidating, hostile, or offensive work environment;
  • monitor or record the domestic worker using the bathroom or changing clothes;
  • monitor or record, or interfere with, private communications;
  • communicate an intent to inform a government entity about the citizenship or immigration status of a domestic worker or the worker's family member, in response to the domestic worker exercising any of the worker's rights; or
  • take any adverse action against a domestic worker for exercising his or her rights, including the right to organize, participate in political speech, disclose immigration status, or institute any proceeding under the law.

 

Written Agreements and Terminations.  The terms and expectations of employment must be in a written agreement with details such as:  the location where the work will be done, rate of pay, work schedule, and, if applicable, information about sick days, vacation days, severance, health insurance costs, and other expectations.  The written agreement must be provided in a language understood by the worker, and the hiring entity, and must be signed and dated by both parties.  A written agreement may not contain provisions waiving a domestic worker's rights under federal, state, or local laws.  The agreement may not contain a mandatory predispute arbitration clause for employee claims, or any nondisclosure, noncomplete, or nondisparagement clause.  L&I  must develop model disclosure statements, which describes a hiring entity's duties and a domestic worker's rights, and a model written agreement.

 

The hiring entity must provide written notice at least two weeks before terminating employment.  For live-in domestic workers, at least four weeks' notice is required.  A domestic worker is entitled to severance pay if a hiring entity fails to comply with notification requirements.  A notice is not required if the termination:

  • is in connection with termination of work performed on a casual labor basis;
  • occurs during an agreed-upon probationary period;
  • is based on a good faith belief that the domestic worker engaged in misconduct or if circumstances outside of the hiring entity's control apply; or
  • is because the domestic worker is unable to meet the requirements of the agreement.

 

Agency Enforcement.  A domestic worker may file a complaint alleging a violation of the bill in accordance with certain deadlines.  L&I may order the hiring entity to pay a civil penalty of $1,000 for each willful violation.  If the hiring entity is a repeat violator, L&I may impose a civil penalty of not less than $2,000, and no more than $20,000, for each willful violation.  L&I may waive or reduce the civil penalties and may not order any penalty if the hiring entity reasonably relied on a written order, ruling, opinion, advice, determination, agency interpretation, or other agency policy.  

 

Retaliation Claims.  It is unlawful for a hiring entity to use a domestic worker's exercise of rights as a negative factor in any employment action, such as disciplining the domestic worker, denying or delaying payment of wages, terminating or demoting the worker, or reducing the number of work hours the worker is scheduled to work.  There is a rebuttable presumption of retaliation if the hiring entity takes adverse action against a domestic worker within 90 days of the domestic worker exercising their rights.  The hiring entity may rebut the presumption with clear and convincing evidence that the adverse action was taken for a permissible purpose.

 

A domestic worker may file a claim with L&I alleging retaliation in accordance with certain deadlines.  If the complaint is not resolved, L&I may, among other things, order the hiring entity to:  pay lost earnings due to the retaliatory action, restore the domestic worker to employment, and pay civil penalties.  Civil penalties for a retaliatory action may not be less than $1,000, or an amount equal to 10 percent of the total amount of unpaid earnings attributable to the retaliatory action, whichever is greater.  The maximum civil penalty is $20,000 for the first violation and $40,000 for each repeat violation.  L&I may waive or reduce civil penalties if the hiring entity took corrective action.  

 

Private Cause of Action.  A domestic worker may also bring a civil action for any violation of the worker's rights under the bill, including for any legal action necessary to collect such claim and reasonable attorneys' fees and costs. 

 

Minimum Wage Act

The MWA exemption for persons whose duties required they sleep or reside at their place of employment or persons who otherwise spend a substantial portion of their work time subject to call and not engaged in the performance of active duties is modified.  The exemption specifically excludes domestic workers as defined in the bill, thereby subjecting those workers and their employers to the MWA, unless another exemption applies. 

 

Washington Law Against Discrimination.

The WLAD is modified to apply to hiring entities and other employers of domestic service employees, subject to certain exemptions, regardless of the entity or employer's total number of employees.  An employee in domestic service may bring suit alleging employment discrimination under the WLAD, subject to certain exceptions related to elderly or disabled persons, but may not otherwise file certain administrative complaints with the HRC.

 

Workers' Compensation

L&I must convene a work group of specified stakeholders to investigate models allowing domestic workers to access workers' compensation coverage.  The work group must consider certain models identified in the bill.  The work group must report to the Legislature by October 1, 2026.

Appropriation: None.
Fiscal Note: Available.  New fiscal note requested on March 14, 2025.
Effective Date: The bill contains multiple effective dates. Please see the bill.
Staff Summary of Public Testimony:

(In support) This bill addresses urgent issues for domestic workers across the state.  Domestic workers experience wage intimidation, harassment, unsafe working conditions, and labor violations, while lacking any recourse or remedy to resolve these issues.  While most employers do not intentionally perpetrate these abuses, bad actors drive down working conditions for all workers.  The bill is about providing these workers with comprehensive protections:  minimum wage, meal and rest breaks, sick leave, written contracts, and antiretaliation protection.  Domestic workers are critical to our economy and our society.  They help raise children, take care of the elderly, and keep our homes in order.  Many of us could not serve in our careers without the support of domestic workers.  We should protect their dignity and safety by providing these basic protections.

 

(Opposed) None.

Persons Testifying:

Anarosa Bello Nieto, Fair Work Center; Danielle Alvarado, Fair Work Center-Working Washington; Heather Villanueva; and Jean Hill, Washington State Catholic Conference.

Persons Signed In To Testify But Not Testifying: None.
HOUSE COMMITTEE ON APPROPRIATIONS
Majority Report: Do pass as amended.Signed by 19 members:Representatives Ormsby, Chair; Gregerson, Vice Chair; Macri, Vice Chair; Berg, Bergquist, Callan, Cortes, Doglio, Fitzgibbon, Leavitt, Lekanoff, Peterson, Pollet, Ryu, Springer, Stonier, Street, Thai and Tharinger.
Minority Report: Do not pass.Signed by 9 members:Representatives Couture, Ranking Minority Member; Connors, Assistant Ranking Minority Member; Penner, Assistant Ranking Minority Member; Burnett, Dye, Keaton, Manjarrez, Marshall and Rude.
Minority Report: Without recommendation.Signed by 3 members:Representatives Schmick, Assistant Ranking Minority Member; Caldier and Corry.
Staff: Xianyu Li (786-7094).
Summary of Recommendation of Committee On Appropriations Compared to Recommendation of Committee On Labor & Workplace Standards:

The amended bill defines "domestic worker" as any worker who:  is an hourly employee, salaried employee, or independent contractor; works for one or more hiring entities; and works in one or more residences as a nanny, house cleaner, home care worker, cook, gardener, or household manager (rather than defining it as including hourly and salaried employees and including any worker who:  works for one or more hiring entities; and is an individual who works in residences as a nanny, house cleaner, home care worker, cook, gardener, or household manager, or for any domestic service purpose), but otherwise retains language specifying certain categories of workers are excluded from the definition of "domestic worker."  The amended bill removes the definition of "domestic service."

 

The amended bill modifies the scope of employers and entities responsible for the requirements in the bill by:

  • modifying the definition of "hiring entity" to mean any employer, person, group of persons, partnership, association, corporation, or business trust, that pays wages or compensation to a domestic worker or pays for the services of a domestic worker (rather than any employer who employs a domestic worker, as well as any individual, partnership, association, corporation, or business trust, which pays a wage or pays wages for the services of a domestic worker);
  • removing a provision specifying that "hiring entity" also includes any entity or person that provides compensation directly or indirectly to a domestic worker for the performance of domestic services; instead, specifying that, when any person, entity, or household contracts with a separate hiring entity for the services of one or more domestic workers, the separate hiring entity is solely responsible for the requirements in the bill and any related violations unless the person, entity, or household interferes with the rights or obligations in the bill;
  • removing a provision specifying that a state agency who does not contract with or employ a domestic worker is liable under the bill if the agency directly interferes with the rights established in the bill; and
  • reorganizing provisions and adding language to clarify that hiring entities are responsible for the meal and rest break requirements with respect to the shifts worked for the respective hiring entity.

 

With respect to written agreements, the amended bill:

  • specifies that a hiring entity responsible for paying compensation to the domestic worker must have a written agreement with the domestic worker, rather than requiring all hiring entities to have written agreements;
  • removes references to work locations, meal and rest periods, and days of rest;
  • removes the requirement that the written agreement must be signed and dated by both parties after a period of review;
  • removes the requirement that the written agreement may not contain certain legal waivers or clauses, like nondisclosure or nondisparagement agreements inhibiting a worker from exercising their rights in the bill; instead, it imposes a general prohibition against requiring or directing such legal agreements as a condition of employment for domestic workers; and
  • requires the hiring entity to provide a copy of the written agreement to the domestic worker.

 

With respect to advance notice of terminations, the amended bill adds a provision allowing a hiring entity to terminate a domestic worker without advance notice or severance if the worker was hired on a one-time or intermittent basis without an expectation of ongoing employment.  It also removes language specifying that a hiring entity must be able to articulate and support certain allegations in order to justify terminations based on a domestic worker's misconduct, which are tied to the requirement to provide advance notice of termination.

 

With respect to records, the amended bill:

  • removes the provision requiring a hiring entity to maintain records on meal and rest periods and the existence of written agreements;
  • requires a hiring entity to make other required records and written agreements accessible to the Department of Labor and Industries (L&I) (rather than just generally requiring certain records to be made accessible); and
  • requires L&I and the court to maintain confidentiality of records in connection with enforcement activities, rather than requiring the "enforcement entity" to maintain such confidentiality.

 

With respect to cooking, the amended bill removes the provision requiring a hiring entity to permit a live-in domestic worker to cook and consume the worker's own food.

 

With respect to enforcement of antiretaliation requirements, the amended bill consolidates provisions governing monetary penalties by removing language specifying that penalties for second or subsequent violations must be doubled, but otherwise retaining language providing that the penalty for each violation must be $1,000 or an amount equal to 10 percent of the total amount of unpaid earnings attributable to the retaliatory action, whichever is greater, and providing that the maximum civil penalty is $20,000 for the first violation, and $40,000 for each repeat violation.

 

With respect to workers’ compensation coverage, the amended bill removes the requirement for L&I to convene a work group to investigate models for allowing domestic workers to access coverage; instead, it requires L&I to conduct a study for this purpose.  L&I is required to consult with certain specified interests when conducting the study, and it must report its findings to the Governor and Legislature by October 1, 2026.

 

The amended bill also makes several other technical changes to conform to drafting standards and improve clarity and readability.

 

Appropriation: None.
Fiscal Note: Available.
Effective Date of Amended Bill: The bill contains multiple effective dates. Please see the bill.
Staff Summary of Public Testimony:

(In support) This bill extends some of the most basic of rights, minimum wage breaks and protection from discrimination, to workers who are currently unfairly excluded from our workplace protections.  It is an urgently needed policy that is going to bring stability and respect to a workforce that so many people rely on on a day-to-day basis.  In addition, the scope of this bill is narrowed to reduce its fiscal impact.

 

(Opposed) None.

Persons Testifying:

Danielle Alvarado, Fair Work Center.

Persons Signed In To Testify But Not Testifying: None.