As 2025 approaches, employers in Washington must prepare for several significant updates to employment laws. Staying ahead of these changes is crucial for compliance and ensuring smooth operations. Below are the key areas to focus on, along with space to link official resources for detailed information:
Minimum Wage Updates
Starting January 1, 2025, Washington’s state minimum wage will increase to $16.66 per hour. This change applies to all non-exempt employees statewide, but employers in Seattle and SeaTac should be mindful of potentially higher local minimum wage ordinances. Adjust payroll systems and budget projections accordingly to reflect the increase.
Non-Compete Clause Thresholds
The enforceability of non-compete agreements will be updated in 2025. The annual earnings thresholds will rise to:
$124,000 for employees.
$310,000 for independent contractors.
Employers should evaluate existing non-compete agreements to ensure compliance with these new limits. Agreements that do not meet the updated thresholds may be deemed unenforceable under state law.
Paid Family and Medical Leave (PFML) Premiums
Washington’s Paid Family and Medical Leave program will see an increase in premium. The updated split between employer and employee contributions is:
71.52% paid by employees.
28.48% paid by employers (for businesses with 50+ employees).
Employers must update payroll systems to reflect the new rates and communicate changes to employees. Small businesses with fewer than 50 employees are exempt from the employer portion but should still deduct the correct employee share.
Learn more at paidleave.wa.gov.
Scheduling Requirements for Minors
New restrictions on scheduling minor employees will take effect in 2025. These changes aim to balance work with education and limit excessive work hours during school weeks. Employers should:
Review schedules for compliance.
Train managers on updated requirements.
Implement tracking systems to monitor minor employees’ hours.
For the all the details click the final policy.
Increased Reimbursement Limits for Stay at Work and Preferred Worker Programs
Starting January 1, 2025, the Stay at Work Program and Preferred Worker Program will nearly double their reimbursement limits for employers, thanks to House Bill 2127. These programs incentivize employers to help injured workers return to approved work within their restrictions, offering financial assistance for accommodations.
Key highlights:
Stay at Work Program: Increased maximum reimbursement for costs related to transitional work.
Preferred Worker Program: Higher reimbursement limits for employers hiring workers with permanent medical restrictions.
Effective Date: Changes apply to claims with a date of injury on or after January 1, 2025. Claims with earlier injury dates will follow the current reimbursement limits.
Employers should prepare to adjust their return-to-work strategies and take advantage of the increased financial support.
For webinars to learn more about the 2025 changes, visit the webinar calendar at Lni.wa.gov/Training.
Expanded Essential Health Benefits for 2026
Washington state is expanding its Essential Health Benefits (EHB) plan, with changes announced by Insurance Commissioner Mike Kreidler. These updates will take effect for health plans starting on or after January 1, 2026, and include:
Expanded Coverage for Human Donor Milk: Health plans must cover donor milk for medically necessary situations, supporting families and infants with critical health needs.
Hearing Aid Coverage: Insurance plans will now include coverage for hearing aids, enhancing access to essential auditory support.
Artificial Insemination: Expanded reproductive health benefits will now include artificial insemination services, broadening family-building options.
Revisions for Non-Discrimination: Updates were made to ensure health plans do not discriminate based on disabilities or health conditions, promoting equitable access to care.
Employers should review their benefits offerings for 2026 to ensure they align with these expanded requirements.
To learn more about this click: essential health benefits plan.
Steps to Stay Compliant
Update Employee Handbooks: Incorporate all changes, including new wage rates, scheduling rules, and reimbursement policies.
Audit Non-Compete Agreements: Ensure existing contracts align with the updated thresholds.
Train Managers and HR Staff: Provide targeted training on implementing and enforcing these new laws.
Communicate with Employees: Proactively share updates to build trust and ensure compliance.
Monitor Ongoing Changes: Regularly check for updates to employment laws or regulations.
Stay ahead of these updates by bookmarking the official resources and reaching out to HR professionals for guidance. Compliance doesn’t have to be overwhelming—our team is here to help!
Contact OmniaHR today at www.Service@OmniaHR.com or visit our website at www.OmniaHR.com.
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