Wage Payment Law Summaries
Washington, Wage Payment Law Summaries
Washington's wage payment law is located in the Annotated Revised Code of Washington at Title 49, Chapter 49.48. The full text of this law is available beginning at Wages-Hours ¶50-46,001 .
There are also provisions in the Washington Administrative Code relating to deducting pay or leave from exempt, salaried employees and relating to public employees (WAC 296–128–500; 296–128–532 and 296–128–533).
DEFINITIONS
“Commission” means compensation paid a sales representative by a principal in an amount based on a percentage of the dollar amount of certain orders for or sales of the principal's product (Sec. 49.48.150).
“Principal” means a person, whether or not the person has a permanent or fixed place of business in Washington, who (Sec. 49.48.150):
manufactures, produces, imports, or distributes a product for sale to customers who purchase the product for resale;
uses a sales representative to solicit orders for the product; and
compensates the sales representative in whole or in part by commission.
“Sales representative” means a person who solicits, on behalf of a principal, orders for the purchase at wholesale of the principal's product, but does not include a person who places orders for his or her own account for resale, or purchases for his or her own account for resale, or sells or takes orders for the direct sale of products to the ultimate consumer (Sec. 49.48.150).
COVERAGE
Washington's wage payment law generally does not apply to the payment of wages or compensation of employees directly employed by any county, incorporated city or town, or other municipal corporation, nor to employees, directly employed by the state, any department, bureau, office, board, commission or institution of the state (Sec. 49.48.080), but the provisions relating to payment of wages upon the death of an employee do apply to public employees (Sec. 49.48.115).
EXCEPTIONS
Washington's wage payment law generally does not apply to the payment of wages or compensation of employees directly employed by any county, incorporated city or town, or other municipal corporation, nor to employees, directly employed by the state, any department, bureau, office, board, commission or institution of the state (Sec. 49.48.080), but the provisions relating to payment of wages upon the death of an employee do apply to public employees (Sec. 49.48.115).
Enforcement; bond.- If upon investigation by the director, after taking assignments of any wage claim, it appears to the director that the employer is representing to its employees that it is able to pay wages for their services and that the employees are not being paid for their services, the director may require the employer to give a bond in the sum as the director deems reasonable and adequate in the circumstances, with sufficient surety, conditioned that the employer will for a definite future period not exceeding six months conduct its business and pay its employees in accordance with Washington law (Sec. 49.48.060).
If within 10 days after demand for bond, the employer fails to provide the same, the director may commence a suit against the employer in the superior court of appropriate jurisdiction to compel it to furnish bond or cease doing business until it has done so (Sec. 49.48.060).
If the court finds that there is just cause for requiring bond and that the same is reasonable, necessary or appropriate to secure the prompt payment of the wages of the employees of the employer and its compliance with Washington's wage payment law, the court will enjoin the employer from doing business in Washington until the requirement is met, or will make other, and may make further, orders appropriate to compel compliance with the requirement (Sec. 49.48.060).
WHAT THE EMPLOYER MUST DO
Form of payment.- Wages must be paid in legal U.S. tender or with checks on banks convertible into cash on demand at full face value (Sec. 49.46.010).
Manner of payment; commissions.- Where a sales representative solicits wholesale orders within Washington pursuant to a contract, the contract must set forth the method by which the sales representative's commission is to be computed and paid (Sec. 49.48.160).
A principal must pay wages and commissions at the usual place of payment unless the sales representative requests that the wages and commissions be sent through registered mail (Sec. 49.48.170).
Termination of contract; commissions.- Upon termination of a contract between a principal and sales representative, all earned commissions due to the sales representative must be paid within 30 days after receipt of payment by the principal for products or goods sold on behalf of the principal by the sales representative, including earned commissions not due when the contract is terminated (Sec. 49.48.160).
Frequency of payment; commissions.- Employers must pay wages due at least monthly on established regular paydays. To facilitate bookkeeping, employers may implement regular payroll systems in which wages from up to seven days before payday are withheld and included in the next pay period (Wash AdminCode, Secs. 296-128-035 and 296-126-023). During the course of a contract between a principal and sales representative, a sales representative must be paid the earned commission and all other moneys earned or payable in accordance with the agreed terms of the contract, but no later than 30 days after receipt of payment by the principal for products or goods sold on behalf of the principal by the sales representative (Sec. 49.48.160).
County pay periods.- In addition to the pay periods permitted under Sec. 36.17.040, counties may pay county officers and employees using the following methods (Sec. 36.17.042, as amended by H. 1461, L. 2009):
The legislative authority of any county may establish a weekly or biweekly pay period where county officers and employees receive their compensation not later than seven days following the end of each pay period for services rendered during that pay period, except as authorized under item (3) below.
In a county that has assumed the rights, powers, functions, and obligations of a metropolitan municipal corporation under chapter 36.56 RCW, the county legislative authority may establish a weekly or biweekly pay period where the county officers and employees receive their compensation not later than 13 days following the end of each pay period for services rendered during that pay period.
The legislative authority of any county that currently uses a semimonthly pay period under RCW 36.17.040 may adopt a biweekly pay period. In such counties, county officers and employees shall receive their compensation not later than 13 days following the end of each pay period for services rendered during that pay period.
Payment upon discharge.- When any employee ceases to work for an employer by discharge, the wages due the employee on account of employment must be paid to the employee at the end of the established pay period, but this does not apply to workers 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. The duty to pay an employee as described in this section also does not apply if the labor-management agreement under which the employee has been employed provides otherwise (Sec. 49.48.010).
Payment when employee quits.- When any employee ceases to work for an employer by voluntary withdrawal, the wages due the employee on account of employment must be paid to the employee at the end of the established pay period, but this does not apply to workers 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. The duty to pay an employee as described in this section also does not apply if the labor-management agreement under which the employee has been employed provides otherwise (Sec. 49.48.010).
Payment upon death of employee.- If at the time of the death of any person, the employer is indebted to him or her for work, labor, and services performed, and no executor or administrator of the employee's estate has been appointed, the employer must upon the request of the surviving spouse pay the indebtedness in an amount as may be due not exceeding the sum of $2,500, to the surviving spouse, or if the decedent leaves no surviving spouse, then to the decedent's child or children, or if no children, then to the decedent's father or mother (Sec. 49.48.120, as amended by H. 1726, L. 2003).
In the event the decedent's employer is the state of Washington, then the amount of the indebtedness that can be paid as described just above shall not exceed $10,000. At the beginning of each biennium, the director of financial management may by administrative policy adjust the amount of indebtedness that can be paid under this subsection to levels not to exceed the percentage increase in the CPI for all urban consumers, CPI-U, for Seattle, or a successor index, for the previous biennium as calculated by the U.S. DOL. Adjusted dollar amounts of indebtedness shall be rounded to the nearest $500 increment (Sec. 49.48.120(2), as amended by H. 1726, L. 2003).
Community property.- If the decedent and the surviving spouse have entered into a community property agreement that meets the requirement of RCW 26.16.120, and the right to the indebtedness became the sole property of the surviving spouse upon the death of the decedent, the employer must pay to the surviving spouse the total of the indebtedness, or that portion that is governed by the community property agreement, upon presentation of the agreement accompanied by an affidavit or declaration of the surviving spouse stating that the agreement was executed in good faith between the parties and had not been rescinded by the parties before the decedent's death (Sec. 49.48.120(3), as amended by H. 1726, L. 2003).
In all cases, the employer must require proof of the claimant's relationship to decedent by affidavit or declaration, and must require the claimant to acknowledge receipt of payment in writing (Sec. 49.48.120(4), as amended by H. 1726, L. 2003).
Any payments made by an employer pursuant to RCW 49.48.115 and 49.48.120 shall operate as a full and complete discharge of the employer's indebtedness to the extent of the payment, and no employer shall thereafter be liable to the decedent's estate, or the decedent's executor or administrator thereafter appointed (Sec. 49.48.120(5), as amended by H. 1726, L. 2003).
The employer may also pay the indebtedness upon presentation of an affidavit as provided in Sec. 11.62.010 (Sec. 49.48.120(6), as amended by H. 1726, L. 2003).
Deductions from wages.- It is unlawful for any employer to withhold or divert any portion of an employee's wages unless the deduction is (Sec. 49.48.010):
required by state or federal law; or
specifically agreed upon orally or in writing by the employee and employer; or
for medical, surgical or hospital care or service, pursuant to any rule or regulation.
Wage statements.- At the time of wage payment, employers must furnish employees with itemized statements showing the pay basis (hours or days worked), rates of pay, gross wages and all deductions for that pay period (Wash AdminCode, Sec. 296-126-040).
DEADLINES
Payment upon discharge.- When any employee ceases to work for an employer by discharge, the wages due the employee on account of employment must be paid to the employee at the end of the established pay period, but this does not apply to workers 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. The duty to pay an employee as described in this section also does not apply if the labor-management agreement under which the employee has been employed provides otherwise (Sec. 49.48.010).
Payment when employee quits.- When any employee ceases to work for an employer by voluntary withdrawal, the wages due the employee on account of employment must be paid to the employee at the end of the established pay period, but this does not apply to workers 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. The duty to pay an employee as described in this section also does not apply if the labor-management agreement under which the employee has been employed provides otherwise (Sec. 49.48.010).
Commissions.- Upon termination of a contract between a principal and sales representative, all earned commissions due to the sales representative must be paid within 30 days after receipt of payment by the principal for products or goods sold on behalf of the principal by the sales representative (Sec. 49.48.160).
ENFORCEMENT
The Director of Labor and Industries enforces Washington's wage payment law (Sec. 49.48.070).
The Department of Labor and Industries may (Sec. 49.48.040):
upon obtaining information indicating an employer may be committing a violation of Washington's wage payment law, conduct investigations to ensure compliance with the law;
order the payment of all wages owed the workers and institute actions necessary for the collection of the sums determined owed; and
take assignments of wage claims and prosecute actions for the collection of wages of persons who are financially unable to employ counsel when, in the judgment of the director of the department, the claims are valid and enforceable in the courts.
Bond.- If upon investigation by the director, after taking assignments of any wage claim, it appears to the director that the employer is representing to its employees that it is able to pay wages for their services and that the employees are not being paid for their services, the director may require the employer to give a bond in such sum as the director deems reasonable and adequate in the circumstances, with sufficient surety, conditioned that the employer will for a definite future period not exceeding six months conduct its business and pay its employees in accordance with Washington law (Sec. 49.48.060).
If within 10 days after demand for bond, the employer fails to provide the same, the director may commence a suit against the employer in the superior court of appropriate jurisdiction to compel it to furnish bond or cease doing business until it has done so (Sec. 49.48.060).
If the court finds that there is just cause for requiring the bond and that the same is reasonable, necessary or appropriate to secure the prompt payment of the wages of the employees of the employer and its compliance with Washington's wage payment law, the court will enjoin the employer from doing business in Washington until the requirement is met, or will make other, and may make further, orders appropriate to compel compliance with the requirement (Sec. 49.48.060).
Court actions.- The prosecuting attorney of any county may prosecute actions, both civil and criminal, for violations of Washington's wage payment law as may come to his or her knowledge, and may enforce the provisions of the law independently and without specific direction of the Director of Labor and Industries (Sec. 49.48.050).
Citations and notices of assessment; civil penalties.- If an employee files a wage complaint with the Department of Labor and Industries, the department shall investigate the wage complaint. Unless otherwise resolved, the department shall issue either a citation and notice of assessment or a determination of compliance: (a) no later than 60 days after the date on which the department received the wage complaint, unless the department extends this time period for good cause; and (b) no later than three years after the date on which the cause of action accrued, unless a longer period of time applies under law. Such cause of action for wage claims accrues from the date when the wages are due. The department shall send the citation and notice of assessment or the determination of compliance to both the employer and the employee by service of process or certified mail to their last known addresses (Sec. 2, H. 3185, L. 2005, enacted March 17, 2006).
If the department determines that an employer has violated a wage payment requirement and issues to the employer a citation and notice of assessment, the department may order the employer to pay employees all wages owed, including interest of one percent per month on all wages owed, to the employee (Sec. 2, H. 3185, L. 2005, enacted March 17, 2006).
If the department determines that the violation of the wage payment requirement was a willful violation, the department also may order the employer to pay the department a civil penalty as specified just below (Sec. 2, H. 3185, L. 2005, enacted March 17, 2006).
A civil penalty for a willful violation of a wage payment requirement shall be not less than $500 or an amount equal to 10 percent of the total amount of unpaid wages, whichever is greater. The maximum civil penalty for a willful violation of a wage payment requirement shall be $20,000 (Sec. 2, H. 3185, L. 2005, enacted March 17, 2006).
The department may not assess a civil penalty if the employer reasonably relied on: (i) a rule related to any wage payment requirement; (ii) a written order, ruling, approval, opinion, advice, determination, or interpretation of the director; or (iii) an interpretive or administrative policy issued by the department and filed with the office of the code reviser. In accordance with the department's retention schedule obligations under Ch. 40.14 RCW, the department shall maintain a complete and accurate record of all written orders, rulings, approvals, opinions, advice, determinations, and interpretations for purposes of determining whether an employer is immune from civil penalties as described under item (ii) just above (Sec. 2, H. 3185, L. 2005, enacted March 17, 2006).
The department shall waive any civil penalty assessed against an employer under this section if the director determines that the employer has provided payment to the employee of all wages that the department determined that the employer owed to the employee, including interest, within 10 business days of the employer's receipt of the citation and notice of assessment from the department (Sec. 2, H. 3185, L. 2005, enacted March 17, 2006).
The department may waive at any time a civil penalty assessed under this section, in whole or in part, if the director determines that the employer paid all wages owed to an employee (Sec. 2, H. 3185, L. 2005, enacted March 17, 2006).
Upon payment by an employer, and acceptance by an employee, of all wages and interest assessed by the department in a citation and notice of assessment issued to the employer, the fact of such payment by the employer, and of such acceptance by the employee, shall: (a) constitute a full and complete satisfaction by the employer of all specific wage payment requirements addressed in the citation and notice of assessment; and (b) bar the employee from initiating or pursuing any court action or other judicial or administrative proceeding based on the specific wage payment requirements addressed in the citation and notice of assessment. The citation and notice of assessment shall include a notification and summary of the specific requirements of this subsection (Sec. 2, H. 3185, L. 2005, enacted March 17, 2006).
Administrative appeals.- A person, firm, or corporation aggrieved by a citation and notice of assessment or a determination of compliance issued by the department under Sec. 2, H. 3185, L. 2005 (see just above) may appeal the citation and notice of assessment or the determination of compliance to the director by filing a notice of appeal with the director within 30 days of the department's issuance of the citation and notice of assessment or the determination of compliance. A citation and notice of assessment or a determination of compliance not appealed within 30 days is final and binding, and not subject to further appeal (Sec. 3, H. 3185, L. 2005, enacted March 17, 2006).
A notice of appeal filed with the director under this section shall stay the effectiveness of the citation and notice of assessment or the determination of compliance pending final review of the appeal by the director as provided for in Ch. 34.05 RCW (Sec. 3, H. 3185, L. 2005, enacted March 17, 2006).
Upon receipt of a notice of appeal, the director shall assign the hearing to an administrative law judge of the office of administrative hearings to conduct the hearing and issue an initial order. The hearing and review procedures shall be conducted in accordance with Ch. 34.05 RCW, and the standard of review by the administrative law judge of an appealed citation and notice of assessment or an appealed determination of compliance shall be de novo. Any party who seeks to challenge an initial order shall file a petition for administrative review with the director within 30 days after service of the initial order. The director shall conduct administrative review in accordance with Ch. 34.05 RCW (Sec. 3, H. 3185, L. 2005, enacted March 17, 2006).
The director shall issue all final orders after appeal of the initial order. The final order of the director is subject to judicial review in accordance with Ch. 34.05 RCW (Sec. 3, H. 3185, L. 2005, enacted March 17, 2006).
Orders that are not appealed within the time period specified in this section and Ch. 34.05 RCW are final and binding, and not subject to further appeal (Sec. 3, H. 3185, L. 2005, enacted March 17, 2006).
An employer who fails to allow adequate inspection of records in an investigation by the department under this chapter within a reasonable time period may not use such records in any appeal under this section to challenge the correctness of any determination by the department of wages owed (Sec. 3, H. 3185, L. 2005, enacted March 17, 2006).
Election of remedy.- An employee who has filed a wage complaint with the department may elect to terminate the department's administrative action, thereby preserving any private right of action, by providing written notice to the department within 10 business days after the employee's receipt of the department's citation and notice of assessment (Sec. 4, H. 3185, L. 2005, enacted March 17, 2006).
If the employee elects to terminate the department's administrative action: (a) the department shall immediately discontinue its action against the employer; (b) the department shall vacate a citation and notice of assessment already issued by the department to the employer; and (c) the citation and notice of assessment, and any related findings of fact or conclusions of law by the department, and any payment or offer of payment by the employer of the wages, including interest, assessed by the department in the citation and notice of assessment, shall not be admissible in any court action or other judicial or administrative proceeding (Sec. 4, H. 3185, L. 2005, enacted March 17, 2006).
Nothing in this section shall be construed to limit or affect: (a) the right of any employee to pursue any judicial, administrative, or other action available with respect to an employer; (b) the right of the department to pursue any judicial, administrative, or other action available with respect to an employee that is identified as a result of a wage complaint; or (c) the right of the department to pursue any judicial, administrative, or other action available with respect to an employer in the absence of a wage complaint. For purposes of this subsection, “employee” means an employee other than an employee who has filed a wage complaint with the department and who thereafter has elected to terminate the department's administrative action as provided in this section (Sec. 4, H. 3185, L. 2005, enacted March 17, 2006).
Collection procedures.- After a final order is issued under Sec. 3, H. 3185, L. 2005 (see above), if an employer defaults in the payment of: (a) any wages determined by the department to be owed to an employee, including interest; or (b) any civil penalty ordered by the department under Sec. 2, H. 3185, L. 2005 (see above), the director may file with the clerk of any county within the state a warrant in the amount of the payment plus any filing fees. The clerk of the county in which the warrant is filed shall immediately designate a superior court cause number for the warrant, and the clerk shall cause to be entered in the judgment docket under the superior court cause number assigned to the warrant, the name of the employer mentioned in the warrant, the amount of payment due on it plus any filing fees, and the date when the warrant was filed. The aggregate amount of the warrant as docketed becomes a lien upon the title to, and interest in, all real and personal property of the employer against whom the warrant is issued, the same as a judgment in a civil case docketed in the office of the clerk. The sheriff shall proceed upon the warrant in all respects and with like effect as prescribed by law with respect to execution or other process issued against rights or property upon judgment in a court of competent jurisdiction. The warrant so docketed is sufficient to support the issuance of writs of garnishment in favor of the state in a manner provided by law in case of judgment, wholly or partially unsatisfied. The clerk of the court is entitled to a filing fee which will be added to the amount of the warrant. A copy of the warrant shall be mailed to the employer within three days of filing with the clerk (Sec. 5, H. 3185, L. 2005, enacted March 17, 2006).
The director may issue to any person, firm, corporation, other entity, municipal corporation, political subdivision of the state, a public corporation, or any agency of the state, a notice and order to withhold and deliver property of any kind when he or she has reason to believe that there is in the possession of the person, firm, corporation, other entity, municipal corporation, political subdivision of the state, public corporation, or agency of the state, property that is or will become due, owing, or belonging to an employer upon whom a notice of assessment has been served by the department for payments or civil penalties due to the department. The effect of a notice and order is continuous from the date the notice and order is first made until the liability out of which the notice and order arose is satisfied or becomes unenforceable because of lapse of time. The department shall release the notice and order when the liability out of which the notice and order arose is satisfied or becomes unenforceable by reason of lapse of time and shall notify the person against whom the notice and order was made that the notice and order has been released (Sec. 5, H. 3185, L. 2005, enacted March 17, 2006).
The notice and order to withhold and deliver must be served by the sheriff of the county or by the sheriff's deputy, by certified mail, return receipt requested, or by the director. A person, firm, corporation, other entity, municipal corporation, political subdivision of the state, public corporation, or agency of the state upon whom service has been made shall answer the notice within 20 days exclusive of the day of service, under oath and in writing, and shall make true answers to the matters inquired of in the notice and order. Upon service of the notice and order, if the party served possesses any property that may be subject to the claim of the department, the party shall promptly deliver the property to the director. The director shall hold the property in trust for application on the employer's indebtedness to the department, or for return without interest, in accordance with a final determination of a petition for review. In the alternative, the party shall furnish a good and sufficient surety bond satisfactory to the director conditioned upon final determination of liability. If a party served and named in the notice fails to answer the notice within the time prescribed in this section, the court may render judgment by default against the party for the full amount claimed by the director in the notice, together with costs. If a notice is served upon an employer and the property subject to it is wages, the employer may assert in the answer all exemptions provided for by Ch. 6.27 RCW to which the wage earner is entitled (Sec. 5, H. 3185, L. 2005, enacted March 17, 2006).
In addition to the procedure for collection of wages owed, including interest, and civil penalties as set forth in this section, the department may recover wages owed, including interest, and civil penalties assessed under Sec. 2, H. 3185, L. 2005 (see above) in a civil action brought in a court of competent jurisdiction of the county where the violation is alleged to have occurred (Sec. 5, H. 3185, L. 2005, enacted March 17, 2006).
This section does not affect other collection remedies that are otherwise provided by law (Sec. 5, H. 3185, L. 2005, enacted March 17, 2006).
WHO TO CONTACT
Contact the Department of Labor and Industries at P.O. Box 44851, Olympia, WA 98504-4851. Telephone: (360) 902-5799. Fax: (360) 902–5792.
RECORDKEEPING
Deductions from employees' wages must be openly, clearly and in due course recorded in the employer's books and records (Sec. 49.48.010).
Inspection of records.- The Director of the Department of Labor and Industries or the director's authorized representative has free access to all places and works of labor, and may request statistics or information pertaining to his or her lawful duties (Sec. 49.48.040).
PENALTIES
See also ENFORCEMENT above.
Failure to pay wages.- Any person, firm, or corporation that violates any of the provisions of Washington's wage payment law relating to payment of wages upon separation from employment, withholding from wages or bonding of employers (Secs. 49.48.010–49.48.030 and 49.48.060) is guilty of a misdemeanor (Sec. 49.48.020). A misdemeanor is punishable by imprisonment in the county jail for a maximum term fixed by the court of not more than 90 days or by a fine in an amount fixed by the court of not more than $1,000, or by both (Title 9, Ch. 9.92, Sec. 9.92.030).
If the employer or former employer fails to pay a wage claim or make satisfactory explanation to the Director of Labor and Industries of its failure to do so within 30 days after notice of the claim is mailed to the employer, the employer or former employer will be liable to a penalty of 10 percent of that portion of the claim found to be justly due. The director will have a cause of action against the employer or former employer for the recovery of the penalty, and the same may be included in any subsequent action by the director on the wage claim, or may be exercised separately after adjustment of the wage claim without court action (Sec. 49.48.060).
In any action in which any person is successful in recovering judgment for wages or salary owed to him or her, reasonable attorney's fees, in an amount to be determined by the court, will be assessed against the employer or former employer. This section does not apply, however, if the amount of recovery is less than or equal to the amount admitted by the employer to be owing for the wages or salary (Sec. 49.48.030).
Recordkeeping.- Any employer or any agent or employee of the employer who refuses the director or authorized representative admission, or who, when requested by the director or authorized representative, willfully neglects or refuses to furnish the director or authorized representative any statistics or information pertaining to his or her lawful duties, which statistics or information may be in his or her possession or under the control of the employer or agent, shall be guilty of a misdemeanor (Sec. 49.48.040). A misdemeanor is punishable by imprisonment in the county jail for a maximum term fixed by the court of not more than 90 days or by a fine in an amount fixed by the court of not more than $1,000, or by both (Title 9, Ch. 9.92, Sec. 9.92.030).
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