As the New Year approaches, it’s an ideal time for employers to update their employee handbooks and workplace policies. Staying current with recent legislative changes and court and agency interpretations of the law is essential for maintaining compliance, providing clear expectations, and communicating workplace culture. With that in mind, here are ten reasons why Washington employers should prioritize updating their policies for the New Year:
1. Compliance with New Minimum Wage and Overtime Rules
Washington’s 2024 amendments to WAC 296-128 increase the minimum wage and redefine overtime exemption thresholds for salaried employees. Updating handbooks to reflect these changes ensures that employees are not misclassified as exempt from the state overtime requirements.
2. Expanded Paid Family and Medical Leave (PFML) Coverage
The state’s broadened PFML eligibility now includes caregiving for any individual who regularly resides in the employee's home or where the relationship creates an expectation that the employee will care for the person, except for individuals who simply reside in the same home with no expectation that the employee care for the individual (e.g., a rent-paying roommate would not be covered). Policies should be updated to reflect the broadening of eligibility.
3. Increase in PFML Premiums and Maximum Weekly Benefits
PFML premium rates and maximum weekly benefits increase in 2025, and employers need to communicate these changes and increase their premium deductions accordingly. Any policies that include the premium rates or maximum benefit should be updated.
4. Accommodations for Pregnant and Nursing Employees
The federal PUMP Act, which became effective in 2023, and Washington State law require workplace accommodations for pregnant and nursing employees, including private nursing spaces and additional breaks. Any policies on accommodation should be updated accordingly.
5. Limitations on Nondisclosure and Nondisparagement Agreements
As of June 9, 2022, Washington law prohibits certain nondisclosure and nondisparagement provisions relating to conduct that an employee reasonably believed to be illegal discrimination, illegal harassment, illegal retaliation, a wage and hour violation, or sexual assault occurring in the workplace or at work-related events. Any policies that are inconsistent with state law should be updated.
6. Limitations on Nonsolicitation Policies and Agreements
In 2023, the National Labor Relations Board (NLRB) adopted a new legal standard for evaluating work rules, and in 2024, the NLRB ruled that overly broad noncompete and nonsolicitation provisions violated the National Labor Relations Act (NLRA), which was followed by an NLRB General Counsel memo limiting “stay-or-pay” provisions. Employers who are covered by the NLRA should consider revising their policies and employment agreements accordingly.
7. Limitations on Noncompetition Covenants
Washington’s noncompetition laws were updated in 2024 to increase workforce mobility, which means that noncompetition covenants and policies that predate the 2024 changes to the laws may be too restrictive under current law and should be updated.
8. Changes to State-Mandated Paid Sick Leave
Employers who use a PTO program to fulfill the Washington State requirements for paid sick leave need to follow detailed notice and compliance regulations that go into effect on January 18, 2025. Any employer policies that are contrary to these regulations should be updated.
9. Clear Guidelines for Remote and Hybrid Work
A remote and hybrid work policy should take into account what positions qualify for remote or hybrid work; business and employee taxes; unemployment insurance; worker’s compensation; state and City requirements for paid leave, minimum wage, and scheduling of employee work hours; registering as an employer in other states; non-discrimination, non-solicitation, noncompete, and pay transparency laws; medical and dental insurance coverage; technology and data privacy; and travel time. Employers should consider updating their policies accordingly.
10. Wage Transparency Requirements
Effective January 1, 2023, employers with 15 or more employees are required to disclose qualifications, wage scales or salary ranges, benefits, and other compensation in job postings, and to provide this information upon request to an employee who is offered an internal transfer or promotion. This builds on the requirements that went into effect in 2018, which prohibit employers from disciplining employees for inquiring about, disclosing, comparing, or discussing their wages or the wages of other employees (other than employees who have access to compensation information as part of their jobs who would not otherwise have access to such information). Any policies that are contrary to these laws should be updated.
If you would like to discuss updating your employee handbook, please reach out to one of the members of the Ogden Murphy Wallace, P.L.L.C. Employment Law team, https://www.omwlaw.com/people?practice=employment-law.
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Intern McKenna Hardy worked with Karen Sutherland to draft this article. This article is a brief overview of a complex topic and is not legal advice, nor does it cover all the reasons why a particular employee handbook should be updated.
