Washington employers are facing increased scrutiny of their wage-and-hour practices. Many of these claims do not arise because an employer intentionally failed to comply with the law. Instead, they often challenge routine practices that employers have followed for years. As a result, employers should consider whether they have the documentation necessary to demonstrate compliance if those practices are questioned later.
Employee Classifications Should Be Reviewed Annually
Many employers carefully evaluate exempt classifications when positions are created. Over time, however, job duties often evolve. Supervisors may spend more time performing front-line work, administrative employees may take on different responsibilities, and job descriptions may become outdated. Moreover, as Washington law annually increases the salary threshold for exempt employees, employers must audit job classifications to ensure continued compliance.
Because exemption decisions are based largely on an employee’s actual duties, employers should annually review classifications and maintain documentation supporting those decisions.
Break Compliance Requires More Than a Written Policy
Meal and rest break claims remain a frequent subject of litigation. In many cases, the issue is not whether the employer had a compliant policy, but whether the employer created a work environment that encouraged and afforded employees the opportunity to take the breaks required by law.
Employers should periodically assess whether staffing levels, workload expectations, and day-to-day operations are consistent with their written policies. If an employee later claims breaks were routinely missed, the ability to demonstrate actual compliance will be more important than the policy.
Meal-Period Waivers Deserve Attention
Many employers utilize meal-period waiver agreements. Those forms should not simply be implemented and forgotten.
Washington’s wage-and-hour requirements continue to evolve through legislation, administrative guidance, and court decisions. For instance, if employees are working enough hours to earn two meal periods, does the meal-period waiver cover both earned meal periods? Employers should periodically review existing waiver language to ensure it remains compliant.
Documentation Often Becomes the Case
Washington law requires employers to maintain records of each employee’s dates of employment, rates of pay, wages paid, and hours worked, and to retain those records for at least three years.
While the law requires employers to maintain payroll and time records, employers should also consider whether they have documentation demonstrating that employees were afforded meal and rest periods and that any reported payroll issues were investigated and resolved. Time records, payroll records, signed acknowledgments, meal-period waivers, and documentation reflecting how missed-break complaints were addressed may all become important evidence if a claim is later asserted.
Employers should also have a clear process for employees to report payroll concerns, missed meal periods, and missed rest breaks, and should maintain documentation reflecting how those issues were handled.
Key Takeaway
The increase in wage-and-hour litigation does not necessarily mean employers are violating the law. It does mean that routine payroll, classification, and break practices are being challenged more frequently. Employers should consider whether they can demonstrate that employees were properly classified, compensated for all hours worked, and afforded the meal and rest periods required by law. Employers with strong documentation and periodic compliance reviews are generally in the best position to defend those practices if they are later questioned.
Please contact Andrew Newman or another member of the Williams Kastner Labor & Employment practice team for assistance with wage-and-hour documentation and compliance.