Executive Summary
Overview: The City of Seattle recently amended four labor standards ordinances: Paid Sick and Safe Time, Fair Chance Employment, Minimum Wage, and Wage Theft. The Labor Standard Ordinances are enforced by the Seattle Office of Labor Standards (OLS). OLS summarizes these ordinances as follows:
- Paid Sick and Safe Time – requires employers to provide Seattle workers with paid sick and paid safe time for use when an employee needs to take time off from work for the employee’s or family member’s illness or a critical safety issue, including domestic violence, sexual assault, or stalking (details below).
- Fair Chance Employment – restricts how employers can use conviction and arrest records during the hiring process and employment.
- Minimum Wage Ordinance – sets the minimum wage for employees working within Seattle. The minimum wage will increase every year on January 1 and eventually rise to $15.00/hour.
- Wage Theft – allows OLS to investigate workers’ complaints of nonpayment of wages and tips. It also requires employers to provide written notice to employees of their wages, tips, how they get paid, and other information (details below).
OLS has published an overview of these standards which can be accessed by clicking here.
Effective Date: Currently in effect.
Coverage: All employers with employees working in Seattle.
Action Required: Distribute the required Wage Theft Notice of Employment Information to all employees and post the required Minimum Wage and Wage Theft poster. The city has published the required Workplace Poster and sample Notice of Employment Information. These resources can be accessed by clicking the link below and then click “Wage Theft Ordinance” under “Publications. http://www.seattle.gov/laborstandards/publications. We have also updated our sick leave toolkit based on changes to the Paid Sick and Safe Time ordinance. The toolkit is available on FormSource in the leave and return to work section.
The Details
Employment Information Must Be Provided to All Employees
Under the Wage Theft Ordinance, a notice of employment information must be given to all employees. The required information includes pay itemization, including gross wages, earned tips, pay basis (hour, shift, day, commission), and other information listed below.
Languages
This information must be provided in English and in the primary language of the employee(s) receiving the written information.
Timing
Employers must give this written notice at time of hire and before any change to such employment information, or as soon as practicable for retroactive changes to such employment information, pursuant to rules issued by OLS. While these requirements existed prior to the amendment, the amendment requires employers to distribute the notice to all currently employed employees and to all future hires.
Required Information
The following information must be provided.
- Name of employer and any trade (“doing business as”) names used by the employer;
- Physical address of the employer’s main office or principal place of business and, if different, a mailing address;
- Telephone number and, if applicable, e-mail address of the employer;
- Employee’s rate or rates of pay, and, if applicable, eligibility to earn an overtime rate or rates of pay;
- Employer’s tip policy, with an explanation of any tip sharing, pooling, or allocation policies;
- Pay basis (e.g., hour, shift, day, week, commission);
- Employee’s established pay day for earned compensation due by reason of employment; and
- Pursuant to rules issued by OLS, other information that is material and necessary to effectuate the terms of the Wage Theft Ordinance.
The city has published a Notice of Employment Information in English and several other dual language notices. The sample notices can be accessed by clicking the following link and then click “Wage Theft Ordinance” under “Publications.
http://www.seattle.gov/laborstandards/publications
Recurring Notice Requirement
Each time compensation is paid, employers must give written notice that contains the following information:
- All hours worked, with regular and overtime hours shown separately;
- All rates or rate of pay, whether paid on hourly, salary, commission, piece rate, or combination thereof, or other basis during the pay period. Workers paid on rates other than hourly or salary are entitled to a detailed printed accounting of commissions, piece rate, or other methods of payment earned during the pay period;
- Tip compensation;
- Pay basis (e.g., hour, shift, day, week, commission);
- Gross wages;
- All deductions for that pay period; and
- Pursuant to rules issued by OLS, other information that is material and necessary to effectuate the terms of the Wage Theft Ordinance.
Employers may choose a reasonable method for providing this information to employees, including, but not limited to a letter, paystub or an employee-accessible online system.
Additional Information Provided by OLS
- The intention of the language “written statement” was for employers to provide this information on a pay statement or any similar electronic means as long as the employee has access to the electronic format.
- Seattle has not provided specific guidance on how the information should be displayed on the pay statement. It is left up to the employer as long as all key information is present.
- For commission and piece rates, detailed information about how a person earned the wages can be displayed similar to the following:
Net sales x Commission rate = Commission
Pieces x Rate = Amount
Employers Must Post a Poster
Employers must post a workplace poster for all employees in a conspicuous and accessible place at the worksite. The poster must be in English and in the primary language(s) spoken by employees. The city has published a “Minimum Wage and Wage Theft“ poster in English and several other languages. The poster can be accessed by clicking the following link and then click “Wage Theft Ordinance” under “Publications.
http://www.seattle.gov/laborstandards/publications.
Employers Must Give Written Notice of Its Paid Sick and Safe Time Policy
Employers must give employees written notice of the employer’s policy and procedure for meeting the requirements of Seattle’s Paid Sick and Safe Time Ordinance, including, but not limited to, the employer’s choice of benefit year; tier size; rate of accrual, use, and carry-over of paid sick and paid safe time hours; manner of providing employees with an updated amount of available paid sick and safe time hours each time wages are paid; and notification requirements for absences and requesting leave. We have updated our sick leave toolkit FAQs and model policy to reflect the new notice requirements. The toolkit is available on FormSource in the leave and return to work section.
As always, please contact your Human Resources Business partner if you have any questions.
This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal advice.