Washington HB 1184: Creating a narrow exemption from overtime provisions for certain nonprofits and small businesses.

Bill Text

AN  ACT  Relating  to  creating  a  narrow  exemption  from  overtime 1
provisions for certain nonprofits and small businesses; amending RCW 2
49.46.130; and creating a new section.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW  SECTION.   Sec.  1.   (1)  Washington's  nonprofit  organizations 5
improve  the  lives  of  thousands  of  Washingtonians  and  are  a  part  of 6
the state's economy.  Nonprofit organizations serve communities in a 7
variety  of  ways,  such  as  supporting  veterans,  stewarding  the 8
environment, supporting performing arts and education, fostering and 9
supporting families, promoting economic development, and much more.
10
(2) Small businesses also are a significant part of the state's 11
economy and are an important part of communities across the state.12
(3)  The  legislature  recognizes  that  due  to  the  nature  and 13
structure of smaller nonprofits and small businesses, these entities 14
and  their  ability  to  continue  to  meet  their  communities'  needs  are 15
being  jeopardized  by  the  state  overtime  rules  for  exempt  employees. 16
When fully implemented in 2028, the minimum salary to be classified 17
as  a  salaried  exempt  employee  will  be  two  and  a  half  times  the 18
statewide minimum wage for a 40-hour week, which is estimated to be 19
approximately $93,000 a year and the highest salary threshold in the 20
nation.  Therefore,  the  legislature  is  creating  a  narrow  exemption 21
H-0370.1
HOUSE BILL 1184
State of Washington69th Legislature2025 Regular Session
By Representatives  Schmidt,  Couture,  Jacobsen,  Eslick,  Klicker,  and 
McClintock
Prefiled 01/07/25.   Read first time 01/13/25.   Referred to Committee 
on Labor & Workplace Standards.
p. 1HB 1184

from overtime provisions to allow more flexibility to these entities 1
and their salaried employees.2
Sec.  2.   RCW  49.46.130  and  2021  c  249  s  2  are  each  amended  to 3
read as follows:4
(1)  Except  as  otherwise  provided  in  this  section,  no  employer 5
shall employ any of his or her employees for a workweek longer than 6
forty hours unless such employee receives compensation for his or her 7
employment in excess of the hours above specified at a rate not less 8
than one and one-half times the regular rate at which he or she is 9
employed.10
(2) This section does not apply to:11
(a) Any person exempted pursuant to RCW 49.46.010(3). The payment 12
of compensation or provision of compensatory time off in addition to 13
a  salary  shall  not  be  a  factor  in  determining  whether  a  person  is 14
exempted under RCW 
49.46.010(3)(c);15
(b)  Employees  who  request  compensating  time  off  in  lieu  of 16
overtime pay;17
(c) Any individual employed as a seaman whether or not the seaman 18
is employed on a vessel other than an American vessel;19
(d)  Seasonal  employees  who  are  employed  at  concessions  and 20
recreational  establishments  at  agricultural  fairs,  including  those 21
seasonal  employees  employed  by  agricultural  fairs,  within  the  state 22
provided that the period of employment for any seasonal employee at 23
any or all agricultural fairs does not exceed fourteen working days a 24
year;25
(e) Any individual employed as a motion picture projectionist if 26
that  employee  is  covered  by  a  contract  or  collective  bargaining 27
agreement which regulates hours of work and overtime pay;28
(f)  An  individual  employed  as  a  truck  or  bus  driver  who  is 29
subject to the provisions of the Federal Motor Carrier Act (49 U.S.C. 30
Sec.  3101  et  seq.  and  49  U.S.C.  Sec.  10101  et  seq.),  if  the 31
compensation  system  under  which  the  truck  or  bus  driver  is  paid 32
includes overtime pay, reasonably equivalent to that required by this 33
subsection, for working longer than forty hours per week;34
(g)  Any  individual  employed  as  an  agricultural  employee.  This 35
exemption  from  subsection (1)  of  this  section  applies  only  until 36
December 31, 2021;37
(h)  Any  industry  in  which  federal  law  provides  for  an  overtime 38
payment  based  on  a  workweek  other  than  forty  hours.  However,  the 39
p. 2HB 1184

provisions of the federal law regarding overtime payment based on a 1
workweek other than forty hours shall nevertheless apply to employees 2
covered  by  this  section  without  regard  to  the  existence  of  actual 3
federal  jurisdiction  over  the  industrial  activity  of  the  particular 4
employer  within  this  state.  For  the  purposes  of  this  subsection, 5
"industry"  means  a  trade,  business,  industry,  or  other  activity,  or 6
branch, or group thereof, in which individuals are gainfully employed 7
(section  3
(h)  of  the  Fair  Labor  Standards  Act  of  1938,  as  amended 8
(Public Law 93-259));9
(i) Any hours worked by an employee of a carrier by air subject 10
to  the  provisions  of  subchapter  II  of  the  Railway  Labor  Act  (45 11
U.S.C. Sec. 181 et seq.), whe