Comments Submitted to L&I on Overtime Rules

I testified this week to Labor & Industries about its plan to change rules on which workers qualify for overtime pay. We have asked L&I to slow down and see the results of similar outreach being done by the federal government. In short, contemplated changes would raise the salary threshold for overtime pay that would increase payroll costs for retailers. In other words, more employees would qualify for overtime pay.

Retailers not only are concerned about increased costs. Often, higher costs reduce the ability to hire, train and can threaten layoffs. With 98.6% of retailers being small businesses with less than 50 employees. Job growth, innovation, and local engagement is sparked by these small retailers, particularly in the rural regions of Washington State. This could impact their future hiring plans.

We have asked L&I to wait for results from a federal review of overtime rules so that state criteria do not conflict with federal rules. This could result in confusion and harm compliance with any changes in labor law.

Hearings are expected to occur within the next month, if they decide to continue with rule-making.