| Update Applicable to: | Effective date |
| All Washington State employers who are classified with NAICS Code 23. | Immediately |
What happened?
On March 13, 2024, with immediate effect, Governor Inslee signed legislation that the legislature passed aimed to make a statutory update on Washington Paid Sick Leave (WPSL), intended to reject the overbroad definition of “Construction Workers” that the Department of Labor & Industries (DLI) had adopted at the end of 2023.
What are the details?
As Vensure previously informed, from January 1, 2024, WPSL mandates employers to pay all unused paid sick leave to commercial construction workers upon their departure, regardless of their employment duration.
However, effective March 13, the rule now only applies to those fitting the specific definition of a Construction Worker, rather than all employees of non-residential construction employers in Washington. A comparison chart of the old and new definitions is provided below:
| Previous Definition | Amended Definition |
| (A) “Construction worker” is any nonexempt employee covered under the 2022 North American Industry Classification System (NAICS) industry code 23, except for those employees who perform only work described in NAICS 2361, residential building construction. This includes employees who work for an employer who perform construction-related work as described in NAICS 23, but are not directly engaged in the construction work itself, such as nonexempt administrative staff. | (A) “Construction worker” means a worker who performed service, maintenance, or construction work on a jobsite, in the field, or in a fabrication shop using the tools of the worker’s trade or craft. |
To sum up, under the revised law, only those construction workers who are actively involved in construction tasks, whether it be service, maintenance, or construction work at a job site, in the field, or a fabrication shop using their trade or craft tools, are entitled to receive paid sick and safe leave benefits upon termination of service. Furthermore, the law for paid sick leave in Washington does not extend to commercial construction workers who are actively involved in construction and are part of specific collective bargaining agreements.
Business Considerations
- Update your PSL policies and practices to incorporate the new payout requirements if the employee leaves employment before 90 days, and to make sure that the payout is at the correct amount
- Ensure your records include documentation of the start and end dates of their employment, as well as the amount paid to the employee.
- It is important for you to stay informed about any updates or changes to this law. Vensure will update employers if necessary.
Resources
Source References
- Washington L&I Creates Rules for Paid Sick Leave Payouts to Certain Construction Workers (VensureHR)
- Washington State and Seattle Paid Sick and Safe Leave Updates (Ogletree Deakins)
- Washington Paid Sick Leave Alert: Construction Worker Definition Clarified by Washington Legislature (Miller Nash LLP)
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