L&I proposes changes to overtime pay eligibility rules

Jun 5, 2019
Written by wpengine

Labor & Industries today proposed new employment rules that would govern eligibility for minimum wage, overtime pay and paid sick leave.

The department also scheduled six public hearings across the state in July and August to take feedback from affected businesses. In short, the new rules would make more employees eligible for overtime pay and therefore increase expenses for retailers.

For many employers, the first increase would take effect on July 1, 2020. The initial increase would affect some 77,000 employees statewide but up to 252,000 by the year 2026, L&I reported.

WR has raised objections to the state proposal and urged it to mirror a similar federal change of rules to provide consistency for retailers operating in multiple states. It has noted that most retailers are small businesses of less than 50 employees. As such, they are least able to absorb the additional costs the new rules will require. Finally, retailers are concerned the new rules will limit employers’ opportunities to offer on-the-job training for management positions.

Click here for background, to review the proposed rules and see the public hearing schedule.