Update Applicable to:
All Washington State employers who are classified with NAICS Code 23.
What happened?
Washington State Legislature passed a bill Engrossed Substitute Senate Bill 5111 (ESSB 5111) requiring employers to pay accrued but unused sick leave to construction workers upon separation before their 90th calendar day of employment. Effective from January 1, 2024.
The Washington Department of Labor & Industries (L&I) will hold public hearings on November 7 and 8, 2023, to implement new proposed rules that clarify and enforce requirements and address existing statutory requirements.
What do employers need to do?
Employers should review the resources provided and it is recommended that they consult their trusted labor attorney to comply with the new requirement for construction workers, as well as participate in the rulemaking, review the proposition, and provide their input to the L&I.
What are the details?
The requirement broadly applies to employers who have workers covered under the North American Industry Classification System (NAICS) Code 23 construction.
Employees who work for an employer that performs construction-related work but are not engaged in the construction work itself are also covered by the rule, including nonexempt administrative staff. However, they are exempt if engaged solely in residential building construction (under NAICS 236100).
The proposed rules provide that accrued and unused sick leave may be paid to construction workers under a valid collective bargaining agreement, provided the collective bargaining agreement establishes equivalent sick leave provisions required by law. In addition to the changes relating to construction workers, L&I’s proposed rules also clarify that employers are not allowed to force employees to use their accrued, unused paid sick leave when a qualifying purpose occurs.
For more information, please see the links below:
Engrossed Substitute Senate Bill 5111 (ESSB 5111)
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