What are my rights as a salaried employee in Washington?

October 28th 2024

Gaining an understanding of your entitlements as a salaried employee in Washington is a self-empowerment tool to help you navigate your professional journey with confidence.

The consistent pay you receive for putting in your hours every working day shapes your position within the workplace. However, the specifics of employment agreements can vary across different states within the United States.

This article aims to provide guidance by answering the queries that have sparked your interest. We’ll explore your rights, guiding you towards a more knowledgeable and empowered professional journey that aligns with the specific regulations of Washington. 

This Article Covers

Defining a Salaried Employee in Washington
Common Questions About Salaried Employee Rights in Washington
Understanding Exempt vs. Non-Exempt Status in Washington
Wage and Hour Regulations in Washington
Deductions, Benefits, and Protections in Washington
Taking Action Against Violations in Washington
Case Studies and Real-Life Scenarios of Salaried Employee Rights Violations in Washington

Defining a Salaried Employee in Washington

What is Salaried Employment in Washington?

The Washington State Department of Labor & Industries defines a salary as a method of compensation in which an employee receives a fixed and predetermined compensation for every pay period. Therefore, a salaried employee in the state is any employee whose basis of compensation is a regular fixed amount paid at the end of every pay period. Salaries in the state are not subject to reduction due to variations in the quality or quantity of work done.

Salaried employees in Washington can be paid weekly, bi-weekly, semi-monthly, or monthly through direct deposits, checks, cash, or prepaid debit cards. Employers must ensure that their preferred method of payment does not require employees to pay to access their wages. 

Salaried employment in Washington falls under two categories based on the applicability of minimum wage laws to employees in every category. The first category of salaried employees is exempt employees, who are not bound by the state’s minimum wage regulations, including overtime and paid sick leave, while the second category comprises non-exempt employees, who are subject to the state’s minimum wage laws.

What are the Key Differences Between Salaried and Hourly Employees in Washington?

Aspect Salaried Employees Hourly Employees
Basis of Compensation Receive a fixed, predetermined salary regardless of the number of hours worked, quality of work, and quantity of work done. Paid on an hourly basis. 
Overtime Eligibility Typically not subject to the state’s overtime laws and not eligible for overtime pay. Eligible for overtime pay for all time worked beyond 40 hours in a workweek. 
Minimum Wage Not subject to the state’s minimum wage regulations. Subject to the state’s minimum wage laws and entitled to a minimum compensation of $16.28 per hour
Paid Time Off (PTO) May be exempted from the state’s paid sick leave benefits.  Entitled to paid sick leave as per the state’s laws. 
Benefits May receive more comprehensive benefits, including federal job-protected medical and family leave of up to 12 weeks in a year.  Typically have fewer benefits, which may vary based on employer policies. 
Work Hours Typically work a standard full-time schedule, often 40-hour workweeks. Work hours and schedules may vary based on seasonal fluctuations in labor demand. 
Job Security Have potentially greater job security due to federal protections.  Job security may vary based on industry and job duties. 

Common Questions About Salaried Employee Rights in Washington

What are the Basic Rights of Salaried Employees in Washington?

Salaried employees in Washington are entitled to certain rights and protections, which include:

  1. Minimum Wage: Non-exempt salaried employees in the state are entitled to compensation of at least the state’s minimum wage of $16.28 per hour. Please note that minors aged 14 and 15, apprentices and employees receiving on-the-job training, certified student employees, and certificated workers with disabilities do not qualify for minimum wage. 
  2. Overtime Pay: Eligible salaried employees are entitled to overtime pay for all time worked beyond 40 hours in a workweek as per Washington overtime laws.
  3. Meal and Rest Breaks: All state employees are entitled to rest breaks of ten or more minutes for every four hours of work and 30-minute meal breaks if they work more than five hours. 
  4. Paid Sick Leave: Non-exempt salaried employees in Washington are entitled to paid sick leave, which is accrued based on the number of hours worked. 
  5. Family and Medical Leave: Exempt employees are entitled to job-protected leave in accordance with the provisions of the Family and Medical Leave Act (FMLA).
  6. Equal Pay for Equal Work: The state’s Equal Pay & Opportunities Act guarantees employees in the state the right to discuss their wages and access wage and salary information. Further, the act prohibits employers from basing pay differentials on gender. Rather, pay differences for similar jobs can only be based on merit, seniority, regional differences in compensation, and the quality or quantity of work done.

 

Is Overtime Pay Applicable to Salaried Employees in Washington?

Yes, while compensation by salary basis is part of the criteria for exemption from overtime, it does not preclude all salaried employees from earning overtime pay. In Washington, non-exempt salaried employees, with the exception of certain agricultural employees, are entitled to overtime pay of 1.5 times their regular rate for all time worked in excess of 40 hours in a 7-day workweek. It’s important to note that employees in the state are not allowed to waive their right to overtime pay. Further, collective bargaining agreements cannot lower the rate of overtime pay below time-and-a-half.

Can Employers Deduct Wages from Salaried Employees?

Yes, Washington labor laws identify four categories of allowable paycheck deductions. These include:

  • Deductions that are authorized by federal or state laws.
  • Wage garnishments ordered by courts of law.
  • Deductions for loans extended to employees and food, lodging, and other benefits provided to employees.
  • Deductions for medical expenses paid for by the employer for non-work related illnesses and injuries. 

Other deductions are allowed from an employee’s final paycheck. These include:

  • Cash Shortages: These deductions are only allowed if the employee is the only person with access to the till.
  • Damaged Equipment: Employers can recover the cost of damaged equipment only if the damage resulted from dishonest and deliberate acts by employees.
  • Dishonored Checks and Credit Card Payments: Employers can recoup losses from dishonored checks issued by clients only if they have policies for check and credit card acceptance. 
  • Theft: Employees can recover the cost of items stolen by employees only if they file a police report and the employee’s actions are found to be deliberate and dishonest.

Are Salaried Employees Eligible for Breaks and Leaves in Washington?

Yes. All employees in the state are entitled to paid rest breaks of at least 10 minutes for every four hours of work. The employees must be relieved of all their duties for the entire duration of the break but may be asked to remain on the premises. 

In addition to rest breaks, employees are entitled to meal breaks of at least 30 minutes if their shifts last five hours or longer. The meal breaks can be scheduled any time from the second hour of work and must be considered compensable time if an employee is required to remain on call. Rest breaks and meal breaks are separate. Please note that an employee who has their meal while working is still entitled to a 30-minute uninterrupted meal break. 

In addition to rest breaks, non-exempt salaried employees in the state are entitled to paid sick leave, which accrues at a rate of one hour of sick leave for every 40 hours worked. All worked hours, including overtime, count in the accrual of paid sick leave. 

Employers in the state are not required to offer holiday, vacation, or bereavement leave. However, specific groups of employees are entitled to leave in different situations. Victims of domestic violence, sexual assault, and stalking are entitled to reasonable leave to seek medical help, relocate, plan for their safety, seek the assistance of law enforcement officers, or attend court proceedings. Similarly, spouses of military personnel are entitled to leave of up to 15 days of job-protected leave when their spouses receive impending calls to active duty. Pregnant employees and new parents are also entitled to job-protected leave for pregnancy-related complications and for the care of their newborns after birth.

Can Salaried Employees Request Flexible Work Arrangements in Washington?

Yes, Washington state encourages employers to establish different work schedules for their employees. The state defines flexible work arrangements as any work schedules that identify the core hours an employee is expected to work and provide alternative variations that the employee can work. State agencies are required to offer employees alternatives to the traditional 8-5 schedule unless doing so would affect their services.

Understanding Exempt vs. Non-Exempt Status in Washington

What is the Definition of Exempt Status in Washington?

Exempt status in Washington refers to exemption from the benefits provided by the state’s minimum wage laws, including eligibility for overtime and paid sick leave. Therefore, salaried exempt employees in the state are employees who are exempt from the state’s minimum wage laws. They must meet federal criteria for exemption.

What are the Implications of Exempt Status in Washington?

Exempt employee status in Washington comes with specific implications for employees and employers. The key implications of exempt status for employees in the state include: 

  • Salary-Based Pay: Exempt employees are compensated on a salary basis. They earn a fixed salary at the end of every pay period regardless of the number of hours worked, quality of work, and quantity of output. 
  • Exemption from Minimum Wage Laws: Exempt employees are not subject to the state’s minimum wage laws. Therefore, they are not entitled to the benefits provided under minimum wage laws, including paid sick leave. 
  • Overtime Pay: Exempt employees are not entitled to overtime pay regardless of the number of hours worked in a workweek. Therefore, they do not receive extra compensation for working beyond 40 hours in a workweek.
  • Job Flexibility: Exempt employees are allowed to request flexible work arrangements, which could improve their work-life balance. 

Exempt employee status has several implications for employers. These include:

  • Eligibility Criteria: Exempt employees must meet a compensation basis, work duties, and salary level criteria. Employers must ensure that all employees who meet this criteria are classified accurately as exempt.  
  • Fixed Compensation: Exempt employees earn a fixed salary and are not eligible for overtime pay, which eases budgeting and the administrative work involved in computing different rates of pay for regular and overtime hours.
  • Job Flexibility: Exempt employees may have greater flexibility in their work schedules, requiring employers to make accommodations for alternative work schedules.
  • Compliance: Employers must classify employees as exempt carefully based on specific criteria outlined by the Fair Labor Standards Act (FLSA) to avoid the consequences of misclassifying employees.

What are the Differences Between Exempt and Non-Exempt Salaried Employees in Washington?

Aspect Exempt Employees Non-Exempt Employees
Overtime Eligibility Not eligible for overtime pay.  Eligible for overtime pay at a rate of 1.5 times their regular rate for all time worked beyond 40 hours in a workweek.
Minimum Salary Generally entitled to a minimum salary of $1,302.4 weekly or $67,724.80 annually. Non-exempt employees must be paid at least the state’s minimum wage of $16.28 per hour for employees aged 16 and above and $13.38 per hour for employees aged 14 and 15.
Job Duties Typically perform specific exempt duties, including select executive, professional, administrative, and sales duties.  Typically perform routine, non-managerial, and manual duties and do not have the same level of responsibility as exempt employees.
Timekeeping Exempt employees are not required to track hours worked, but they may track time worked to enjoy the benefits of tracking salaried employees’ hours in the U.S. Non-exempt employees are required to track and record hours worked accurately. 
Basis of Compensation Paid on a salary basis. May be paid on an hourly or salary basis. 

How to Determine if You’re Exempt or Non-Exempt in Washington?

To determine whether an employee is exempt from minimum wage and overtime requirements in Washington, you can follow the following set of tests and guidelines established by the FLSA. 

  • Salary Basis Test: Exempt employees must be paid on a salary basis. They receive a fixed salary at the end of every pay period regardless of the number of hours worked, the quantity of work done, and the quality of their work. 
  • Salary Level Test: Washington state establishes a minimum salary threshold of $1,302.4 weekly or $67,724.80 annually for an exempt employee.  
  • Duties Test: The state recognizes five categories of exempt duties. Employees who pass the salary basis and salary level tests are considered exempt if their duties fall under any of the following exempt categories:
    • Executive Exemption: An employee qualifies for the executive exemption if their main duties involve managing an enterprise or one of its divisions, directing the work of two or more employees, and weighing in on material personnel decisions. 
    • Administrative Exemption: An employee qualifies for the administrative exemption if they perform office or non-manual work involving the management of their employer’s business as part of their main duties and exercise discretion and independent judgment in their work. 
    • Professional Exemption: An employee qualifies for the professional exemption if their work requires advanced knowledge in a field of science or learning that is customarily acquired through extended periods of specialized education and the employee uses their independent judgment and discretion in their execution of their duties. Art and work that requires creativity , imagination, originality, or talent fall under the professional exemption. 
    • Computer Employee Exemption: Computer employees such as systems analysts, programmers, or employees with other specialized computer skills are considered exempt if they meet the salary level and basis criteria.
    • Outside Sales Exemption: Sales employees whose primary duties are generating sales away from the employer’s place of business are considered exempt if they meet the salary basis and level criteria.

Wage and Hour Regulations in Washington

What are the Minimum Wage Requirements for Salaried Employees in Washington?

Exempt employees in Washington are entitled to a minimum salary of 1302.4 weekly (or $67,724.80 annually). Salaried non-exempt employees, on the other hand, are entitled to compensation of at least $16.28 per hour.

How is Overtime Compensated for Salaried Employees in Washington?

Eligible salaried employees in the state are entitled to overtime pay for all time worked in excess of 40 hours in a workweek as per Washington salaried employees laws. Overtime is compensated at a rate of 1.5 times their regular pay. Public salaried employees in the state are eligible for compensatory time in lieu of monetary compensation. They can choose between receiving monetary compensation or compensatory time at a rate of 1.5 hours for every hour of overtime. It’s important to note that an employer cannot dictate the form of overtime compensation taken by an employee. Employees have the liberty to choose between comp time and monetary compensation for overtime.

 

Deductions, Benefits, and Protections in Washington

What are the Permissible Deductions from Salaried Employee Pay in Washington?

The following paycheck deductions are permissible in the state:

  • Deductions that employers are allowed or authorized to make by federal or state laws. These include income taxes, workers’ compensation, and Medicare.
  • Court-ordered wage garnishments such as child support.
  • Deductions for the recovery of benefits extended to employees, which include loans extended to employees, food, and lodging facilities used by employees.
  • Deductions to recover medical expenses that are not covered by an employee’s health plan but were paid for by the employer for non-work related illnesses and injuries. 

Washington state laws identify some deductions that an employer can only make from an employee’s final paycheck. These include deductions to recover cash shortages, the cost of damaged equipment, losses from dishonored checks and declined credit card payments, and losses from theft by an employee.

What are the Provided Employee Benefits and Protections Under Washington State Law?

Employees in the state are entitled to various benefits and protections to ensure their well-being and rights in the workplace. These include:

  • Minimum Wage and Overtime Pay: Both exempt and non-exempt salaried employees in the state are entitled to minimum compensation that is higher than the federal minimum salary threshold and federal minimum wage. 
  • Workers’ Compensation: Employees in Washington who sustain work-related illnesses and injuries are entitled to paid medical care, wage compensation, and other benefits to aid in their recovery and help them get back to work. It’s important to note that the state adopts a no-fault policy on workers’ compensation. Therefore, employees who sustain work-related injuries or illnesses are entitled to these benefits regardless of who is at fault.
  • Protection for Minor Employees: Minor employees in the state are protected from exceeding 20 hours of work in a workweek when school is in session and 48 hours in a workweek when school is out of session. Further, they are prohibited from engaging in hazardous duties such as slaughtering animals, demolitions, roofing, and operating heavy and dangerous machinery. 
  • Protection from Discrimination: All employees in the state are protected from discriminatory employment practices on the basis of the following protected characteristics:
    • Opposition to a discriminatory practice
    • Sensory, mental, or physical disability
    • The use of a trained dog guide or service animal
    • HIV/AIDS and Hepatitis C Status
    • Race
    • Color
    • Creed
    • National Origin
    • Sex
    • Pregnancy
    • Marital Status
    • Age 
    • Sexual Orientation and Gender Identity
    • Veteran or Military Status

Taking Action Against Violations in Washington

How to Report Violations to Authorities or Labor Departments in Washington?

The Washington State Department of Labor & Industries handles worker rights complaints related to minimum wage, overtime, leave, final paychecks, paycheck deductions, retaliation, and termination, child labor, and breaks. You can report any of these violations to the department by filing a Worker Rights Complaint online.

 

Case Studies and Real-Life Scenarios of Salaried Employee Rights Violations in Washington

Workplace Discrimination: Clark County Ordered to Pay Former Employees $600,000 to Settle Hostile Workplace Environment Suit

In June 2023, a federal jury awarded three former Clark County employees $600,000 for racial discrimination in the case: Elias Pena, Isaiah Hutson, and Ray Alanis v. Clark County.

Elias, Isaiah, and Ray, who are Latino, were employees of the county’s public works department. In their lawsuit, the three claimed that they were subjected to years of discrimination on the basis of their race and ethnicity. They were subjected to derogatory comments and racist remarks. When they reported the hostility to the human resource department, the experiences they highlighted as instances of racial discrimination were not deemed labor law violations.

The jury found that no state or federal laws had been violated in the handling of their complaints by the county’s human resource department. However, the three employees had experienced hostility and bias in the workplace. Therefore, the jury awarded them $200,000 each.

Lessons learned from the case:

  • The case is a reminder to employees that they are entitled to a healthy workplace environment and protected from hostile work environments and discrimination on the basis of any of the protected characteristics recognized by the state’s anti-discrimination laws. 
  • The jury’s verdict is a call to action for employers to have comprehensive anti-discrimination policies that define different types of discrimination and establish thorough investigative processes for all reported cases of workplace discrimination. 

Wage Theft: Willows Inn Agrees to Pay $600,000 to Settle Class Action Suit for Failing to Compensate Staff for All Hours Worked

In 2021, Willows Inn agreed to a preliminary settlement of $600,000 in the case: Kleeburg et al v. Westshore Hospitality LLC et al

Some restaurant employees had gone to court, alleging that their employer had implemented a pay scheme that denied them overtime for time worked in excess of 40 hours in a workweek. In addition to denying them overtime pay, the company withheld tips, paid some employees less than the minimum wage, and denied them rest and meal breaks. The employees alleged that the management was aware of all these labor violations but did not take any action to address them or prevent their recurrence.

Willows Inn agreed to a settlement under which the employees involved in the class suit would recover an estimated 75% of their unpaid wages. 

Lessons learned from the case: 

  • The case highlights the importance of tracking time and attendance to ensure that employees are compensated for all the time they spend on work. Here are some of the 6 best free free time & attendance software to consider. 
  • The settlement is a reminder to employers to provide rest breaks of at least 10 minutes for every 4 hours of work and meal breaks of at least 30 minutes as per state laws to avoid fines and other legal consequences. 

Final Thoughts

Salaried employees in Washington must understand their legal rights and protections. This knowledge will empower them to protect themselves from potential violations of their rights and help them assert their well-being in the workplace. 

Remaining updated on changes in labor law is crucial for the maintenance of a positive work environment. Given the intricate nature of employment regulations, seeking advice from professionals by consulting with an employment lawyer or contacting the Washington State Department of Labor & Industries can offer invaluable guidance and insights.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.