Why Washington HR Compliance Stands Out
Washington State has some of the most progressive and complex labor laws in the nation. From the nation-first WA Cares Fund (long-term care insurance) to one of the most generous paid family and medical leave programs, Washington employers face unique compliance challenges that standard HR software often can't handle.
If you're running a Washington business—especially in Seattle, which has its own scheduling ordinances—you need HR tools specifically designed to manage:
- WA Cares Fund premiums (0.58% payroll tax with exemption tracking)
- Washington Paid Family & Medical Leave (up to 18 weeks annually)
- Seattle Secure Scheduling (predictive scheduling for retail/food service)
- L&I workers' compensation requirements and reporting
- Seattle minimum wage (higher than state, varies by employer size)
- Washington Paid Sick Leave (1 hour per 40 hours worked)
- Local ordinances in Tacoma, SeaTac, and other cities
đź’° The Real Cost of Washington Non-Compliance
- WA Cares Fund penalties: 1% monthly interest on unpaid premiums + enforcement actions
- PFML violations: $1,000 penalty + benefits owed + treble damages for retaliation
- Seattle scheduling violations: $500 per employee per violation + attorney fees
- L&I penalties: 25% assessment on unpaid premiums + coverage denial
- Paid sick leave violations: Up to $1,000 per violation + back pay + damages
- Wage theft: Triple damages + attorney fees under Washington Wage Rebate Act
Washington's Unique HR Requirements
1. WA Cares Fund (Long-Term Care Insurance)
Washington is the first state to mandate long-term care insurance through a payroll tax. Launched in 2022, WA Cares requires most employees to contribute 0.58% of their wages (no employer match, but employers must administer it).
What You Need to Know:
- 0.58% premium withheld from employee wages (no cap)
- Exemptions available for those with private LTC insurance (must apply)
- Employers must track exemptions and maintain proof
- Quarterly reporting to Employment Security Department (ESD)
- Covers up to $36,500 lifetime benefit for long-term care services
Software feature needed: WA Cares premium calculation, exemption tracking, ESD quarterly reporting integration
2. Washington Paid Family & Medical Leave (PFML)
One of the most generous paid leave programs in the U.S., Washington PFML provides up to 18 weeks of paid leave (12 weeks family/medical + 6 weeks pregnancy disability). Employers and employees share premium costs.
Coverage Details:
- Premium: 0.8% of wages (split: employees pay 63.33%, employers pay 36.67%)
- Benefit: 90% of first $1,000/week + 50% of remainder (up to max)
- Family leave: Bonding, care for family member (12 weeks)
- Medical leave: Own serious health condition (12 weeks)
- Pregnancy: Additional 2 weeks before birth + 6 weeks after
- Employers 50+: May offer equivalent private plans
Software feature needed: PFML premium calculation/withholding, leave request workflows, ESD reporting, intermittent leave tracking
3. Seattle Secure Scheduling Ordinance
Seattle's predictive scheduling law requires retail and food service employers to provide advance notice of schedules and compensate employees for last-minute changes.
Requirements (Retail/Food Service, 500+ Employees Worldwide):
- 14-day advance notice: Post schedules 14 days before start
- Good faith estimate: Provide expected hours at hire
- Schedule change pay: $50 for changes with less than 14 days notice
- On-call prohibition: Can't require employees to be on-call without pay
- Right to rest: 10 hours between shifts (or pay premium)
- Access to hours: Offer extra shifts to existing employees first
Software feature needed: Schedule publishing workflows, change tracking, automatic premium pay calculation, shift offer management
4. Labor & Industries (L&I) Workers' Compensation
Washington requires all employers to carry workers' compensation through the state-run L&I system (with limited self-insurance options for large employers). Quarterly reporting and accurate job classification are mandatory.
L&I Requirements:
- Mandatory coverage from day one (even sole proprietors with employees)
- Quarterly wage/hour reporting for each employee
- Accurate risk classification codes per job role
- Injury reporting within 5 days of employer knowledge
- Premiums calculated based on risk class and experience rating
- Annual premium audits possible
Software feature needed: L&I quarterly reporting integration, risk code tracking, injury incident management, wage/hour by classification
5. Washington Paid Sick Leave
Washington requires all employers to provide paid sick leave at a rate of 1 hour per 40 hours worked, with no waiting period for usage.
Key Rules:
- Accrual: 1 hour per 40 hours worked (includes part-time/seasonal)
- No waiting period for use (can use as it accrues)
- Carryover required (unless paid out at year-end)
- Allowed uses: Own/family illness, preventive care, certain public health emergencies
- Employer may cap annual use at 40 hours (but must allow accrual/carryover)
Software feature needed: Automatic sick leave accrual, carryover tracking, itemized accrual on pay stubs
6. Local Minimum Wage Ordinances
Multiple Washington cities have higher minimum wages than the state: Seattle, SeaTac, Tacoma, Tukwila. Rates vary by employer size and location.
2026 Minimum Wages (Examples):
- Washington State: $16.66/hour
- Seattle (500+ employees): $19.97/hour
- Seattle (1-500 employees): $19.97/hour (if no health benefits)
- SeaTac: $19.71/hour (hospitality/transportation)
- Tacoma: $16.66/hour (same as state)
Software feature needed: Location-based wage rate automation, annual adjustment alerts, multi-location pay rate management
Washington HR Compliance Checklist
Use this checklist to audit your Washington compliance. If your HR software can't handle these, you're at risk.
âś… Payroll & Taxes
âś… Leave Management
âś… Seattle Scheduling (If Applicable)
âś… Workers' Compensation (L&I)
âś… Recordkeeping
Essential Software Features for Washington Employers
Don't just check boxes—make sure your HR software actively prevents violations:
đź’Ľ WA Cares Fund Management
Your payroll system must handle:
- Automatic 0.58% withholding from employee wages
- Exemption tracking with document storage
- ESD quarterly reporting integration
- New hire WA Cares notice automation
👶 PFML Premium & Leave Tracking
Must include:
- Premium calculation (0.8% split 63/37 employee/employer)
- Leave request workflows with approval chains
- Intermittent leave tracking (partial days/weeks)
- PFML benefits coordination (employer + state benefits)
- ESD integration for claims reporting
đź“… Seattle Secure Scheduling Tools
Schedule management needs:
- 14-day advance schedule publishing
- Schedule change tracking with timestamps
- Automatic $50 premium pay for late changes
- 10-hour rest period enforcement
- Good faith estimate at hire
- Shift offering workflow (current employees first)
🛡️ L&I Reporting & Incident Tracking
Workers' comp management:
- Risk classification code assignment by job
- Quarterly wage/hour reporting to L&I
- Workplace injury incident workflows
- 5-day injury reporting alerts
- Experience modification tracking
🤒 Paid Sick Leave Accrual
Track Washington sick leave:
- Automatic 1:40 accrual ratio
- Immediate usage (no waiting period)
- Annual carryover or payout options
- Accrual display on pay stubs
đź“Ť Location-Based Pay Rate Management
Multi-location wage compliance:
- Automatic minimum wage by work location
- Seattle tier tracking (employer size + benefits)
- Annual rate update alerts (state + local)
- Geofencing for mobile/remote workers
Top HR Software for Washington Compliance
These platforms are specifically equipped to handle Washington's unique requirements:
1. Rippling
Best for: Multi-state companies with Washington employees
Rippling automatically handles Washington-specific payroll taxes including WA Cares Fund and PFML premiums. The platform's state-aware automation applies Seattle minimum wage rates and scheduling rules only to eligible employees. Leave management integrates with Washington's PFML system.
Washington-Specific Features:
- WA Cares Fund withholding (0.58%) with exemption tracking
- PFML premium calculation and ESD reporting
- Seattle minimum wage automation by employer size
- Washington paid sick leave accrual (1:40 ratio)
- L&I quarterly reporting integration
- Location-based pay rate rules
Pricing: Starts at $8/user/month
Best for: 10-500 employees with multi-state operations
Read full Rippling review →2. Gusto
Best for: Washington small businesses (1-50 employees)
Gusto handles Washington payroll taxes out of the box, including WA Cares Fund and PFML withholdings. Their sick leave tracking automatically applies Washington's 1:40 accrual ratio. Multi-location support helps Seattle businesses comply with local wage and scheduling rules.
Washington-Specific Features:
- WA Cares Fund and PFML premium automation
- Washington paid sick leave accrual and tracking
- Seattle minimum wage support
- ESD new hire reporting
- Washington-specific tax forms
- Local ordinance alerts
Pricing: $40/month + $6/person
Best for: Washington startups and small businesses
Read full Gusto review →3. ADP Workforce Now
Best for: Larger Washington employers (50-1000 employees)
ADP's Washington compliance module includes dedicated support for WA Cares Fund tracking, PFML leave management, and L&I reporting. Their time and labor tools handle Seattle scheduling ordinances with built-in premium pay calculations for late changes.
Washington-Specific Features:
- WA Cares exemption document storage
- PFML leave workflows with ESD integration
- Seattle secure scheduling tools
- L&I quarterly reporting automation
- Multi-location wage rate management
- Washington compliance helpline
Pricing: Custom (typically $15-25/employee/month)
Best for: Mid-sized Washington businesses with dedicated HR
Read full ADP review →4. Paycom
Best for: Washington businesses prioritizing self-service
Paycom's employee self-service platform allows workers to request PFML leave, view WA Cares deductions, and manage sick leave balances. The scheduling module includes Seattle-specific rules for advance notice and schedule change premiums.
Washington-Specific Features:
- Employee self-service for PFML requests
- WA Cares and PFML deduction transparency
- Seattle scheduling compliance tools
- Washington sick leave self-tracking
- L&I incident reporting workflows
- Mobile app for schedule management
Pricing: Custom (typically $20+/employee/month)
Best for: 50-500 employees with tech-savvy workforce
Read full Paycom review →5. Paycor
Best for: Seattle retail/restaurant businesses with scheduling needs
Paycor's scheduling tools are purpose-built for Seattle's Secure Scheduling Ordinance. The platform enforces 14-day advance notice, tracks schedule changes automatically, and calculates $50 premiums for late changes. Shift bidding features help offer hours to current employees first.
Washington-Specific Features:
- Seattle secure scheduling compliance (14-day notice)
- Automatic $50 premium for schedule changes
- 10-hour rest period tracking
- Good faith estimate templates
- WA Cares and PFML payroll integration
- Washington paid sick leave automation
Pricing: Custom (typically $99+ base + per employee)
Best for: 20-500 employees in retail/food service
Read full Paycor review →6. When I Work
Best for: Small Seattle businesses focused on scheduling compliance
When I Work specializes in shift scheduling with built-in Seattle ordinance compliance. While not a full HRIS, it integrates with payroll providers to handle schedule-related pay premiums and tracks all requirements for predictive scheduling laws.
Washington-Specific Features:
- Seattle scheduling ordinance automation
- 14-day advance schedule publishing
- Schedule change documentation
- Rest period tracking between shifts
- Employee shift preferences and bidding
- Integration with Washington payroll providers
Pricing: Starts at $2.50/user/month
Best for: 5-100 employees in Seattle retail/food service
Read full When I Work review →Washington HR Compliance FAQ
What is the WA Cares Fund and who pays it?
WA Cares Fund is Washington's mandatory long-term care insurance program, the first of its kind in the nation. Employees pay a 0.58% premium on all wages (no cap), deducted from their paychecks. Employers don't contribute but must administer the withholding and remit it quarterly. Employees who purchased private long-term care insurance before November 1, 2021, can apply for a permanent exemption. Employers must track exemptions and maintain proof documents.
How does Washington Paid Family & Medical Leave (PFML) work?
Washington PFML provides up to 18 weeks of paid leave annually (12 weeks family/medical leave + up to 6 additional weeks for pregnancy complications). The premium is 0.8% of wages, split 63.33% employee and 36.67% employer. Benefits pay 90% of the first $1,000/week plus 50% of the remainder. Employees can take leave for bonding with a new child, caring for a family member with a serious health condition, or their own serious health condition. Employers with 50+ employees may offer equivalent private plans.
What is Seattle's Secure Scheduling Ordinance?
Seattle's predictive scheduling law applies to retail and food service employers with 500+ employees worldwide. It requires 14 days' advance notice for schedules, prohibits on-call shifts without pay, and requires employers to pay $50 for schedule changes made with less than 14 days' notice. Employees must receive a "good faith estimate" of expected hours at hire, and employers must offer extra shifts to current employees before hiring new workers. The law also requires 10 hours of rest between shifts (or premium pay).
What are Washington's L&I (Labor & Industries) requirements?
All Washington employers must carry workers' compensation insurance through the state-run L&I system (with limited self-insurance options). Employers must submit quarterly wage and hour reports for each employee, accurately classify workers by risk code, and pay premiums based on those classifications. Workplace injuries must be reported to L&I within 5 days of the employer's knowledge. Failure to maintain coverage results in penalties, and injured workers may not be covered if the employer wasn't compliant.
How does Washington paid sick leave work?
Washington requires all employers to provide paid sick leave at a rate of 1 hour per 40 hours worked. Unlike many states, there's no waiting period—employees can use sick leave as it accrues. Sick leave carries over year to year (or must be paid out at year-end). Employers may cap annual usage at 40 hours but must allow continued accrual and carryover. Allowed uses include employee's own illness, family member illness, preventive care, and certain public health emergencies.
What is Seattle's minimum wage and how is it different from the state?
Seattle's minimum wage is significantly higher than Washington State's $16.66/hour. For 2026, large employers (500+ employees) must pay $19.97/hour. Smaller employers (1-500 employees) pay $19.97/hour if they don't provide health benefits, or a lower rate if they contribute to medical benefits. The rate adjusts annually based on CPI. SeaTac has its own minimum wage for hospitality and transportation workers ($19.71 in 2026), while most other Washington cities follow the state minimum.
Can employees opt out of WA Cares Fund premiums?
Yes, but only if they meet specific conditions. Employees who purchased qualifying private long-term care insurance before November 1, 2021, can apply for a permanent exemption through the Employment Security Department (ESD). Once approved, the exemption is permanent—even if they cancel their private policy. Employees who didn't get private insurance before the deadline cannot opt out. Employers must track exemptions and stop withholding premiums for exempt employees.
What happens if I don't comply with Seattle scheduling laws?
Seattle can impose penalties of $500 per employee per violation for Secure Scheduling Ordinance violations. Employees can also file private lawsuits for unpaid schedule change premiums, rest period violations, or retaliation. If employees prevail, they can recover back pay, liquidated damages, and attorney fees. The Office of Labor Standards investigates complaints and conducts audits. Violations are public record and can damage your employer brand.
Do Washington overtime rules differ from federal law?
Washington generally follows federal FLSA overtime rules: time-and-a-half for hours over 40 in a workweek. However, Washington has stricter salary thresholds for exempt employees—in 2026, the threshold is higher than federal minimums and adjusts annually. Washington also has specific rules for agricultural workers, healthcare workers, and certain other industries. Unlike California, Washington does not require daily overtime (only weekly), but employers must follow whichever standard is more generous to the employee.
How long must I keep Washington employment records?
Washington requires employers to keep payroll records for at least 3 years. This includes time records, wage rate information, deductions, and total wages paid. PFML leave records must be kept for 3 years after the leave year. L&I requires injury records to be kept for 5 years. WA Cares exemption documents should be kept permanently for exempt employees. Best practice: maintain all employment records for at least 7 years to cover potential audits and litigation.
Find the Right HR Software for Your Washington Business
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