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Apr 20 2026
Employee ClassificationsWashington

Know how to respond to an L&I risk classification audit

We’re aware of several Washington employers who have recently received audit notices from the Washington State Department of Labor & Industries (L&I) to review their risk classifications. Let’s run through what this means, what you should do if you are audited, and how to stay prepared in case you’re next on the list. Why is…

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Apr 02 2026
Employee ClassificationsWage and Hour

Q&A: Managers have to mostly manage, or lose overtime exemption

Question: A store manager who recently quit is now demanding a huge amount of overtime pay, claiming that they spent most of their time doing nonmanagement tasks. We classify all of our store managers as exempt from overtime. What is our exposure? Answer: The answer will depend heavily on all of your store managers’ normal…

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Jun 10 2025
Employee ClassificationsWage and Hour

DOL questions 2024 independent contractor vs. employee rule

The U.S. Department of Labor (DOL) has issued a field assistance bulletin instructing the Wage and Hour Division’s staff to stop applying a rule issued last year describing how to determine whether a worker is an independent contractor or an employee under the federal Fair Labor Standards Act (FLSA). The 2024 rule (which we reported…

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Mar 21 2025
Employee ClassificationsWage and Hour

Q&A: Be prepared for lawsuit solicitation letters

Question: A few of our current and former employees received letters from a law firm suggesting they might be able to file a class action lawsuit against us because of allegations that we didn’t properly track work hours or comply with rest and meal period requirements. Can they do that? How should we respond? Answer:…

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Jan 29 2024
Employee ClassificationsWage and Hour

DOL publishes FLSA rule on independent contractors vs. employees

The U.S. Department of Labor (DOL) has published a new regulation describing how to determine whether a worker is an independent contractor or employee under the federal Fair Labor Standards Act (FLSA). The regulation uses an “economic realities” test to evaluate whether the worker is economically dependent on the hiring entity (indicating employee status) or…

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Nov 02 2023
Employee ClassificationsLabor RelationsWage and Hour

NLRB expands interpretation of joint employment

The National Labor Relations Board (NLRB) recently issued a new regulation that broadly designates separate companies as joint employers for purposes of having a duty to comply with the National Labor Relations Act (NLRA). The rule affects potential joint employment relationships such as client employers and their staffing agencies, or franchisors and their franchisees, or…

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Mar 02 2023
Employee ClassificationsWage and Hour

Evaluate classifications for employees paid a daily rate

In a recent decision from the U.S. Supreme Court, an employee who was paid on a daily rate basis and earned more than $200,000 annually was found to be nonexempt and therefore eligible to recover overtime under the federal Fair Labor Standards Act (FLSA). The employee was a “tool-pusher” on an offshore oil rig and…

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Feb 02 2023
Employee ClassificationsOregonWage and Hour

Minimum salary for noncompete agreements rises in 2023

Employers in Oregon and Washington who use noncompetition agreements must review enforceability requirements and increased minimum salary thresholds annually in order to ensure that their contracts remain legally enforceable at the time of separation from employment. Oregon: For valid noncompete agreements signed on or after January 1, 2022, the minimum gross salary for separated workers…

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Jan 19 2023
Employee ClassificationsQ&AWage and Hour

Q&A: Using rounding in timekeeping may violate state law

Question: We use a timekeeping system that rounds employees’ punches in and out to the nearest quarter of an hour. I recently heard this may be risky, but I thought federal law allows it? Answer: Both points are true: This practice may be risky under state wage and hour law, even though the regulations in…

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Jan 19 2023
Employee ClassificationsQ&AWage and Hour

Q&A: Evaluate administrative exemption from overtime carefully

Question: We have a dispatcher who we’ve always considered to be exempt from overtime. A newly hired member of our HR team is now questioning this classification. How can we determine who’s right? And if it turns out the dispatcher is probably nonexempt but we decide not to make any changes, what’s the risk to…

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Dec 15 2022
Employee BenefitsEmployee ClassificationsHiring

WASHINGTON: L&I policy addresses job posting requirements

The Washington Department of Labor and Industries (L&I) recently released a new Administrative Policy (ES.E.1) that provides guidance on new job posting requirements. As we previously reported, employers with 15 or more employees must include specific information on wages and benefits in all job postings beginning January 1, 2023. The Administrative Policy provides informal guidance…

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Aug 18 2022
Employee ClassificationsQ&AWage and Hour

Q&A: Can we convert an employee into an independent contractor?

Question: Our employee is retiring soon, but we’d like her to finish a few projects after she retires. We don’t want to provide benefits, so we’d like to have her sign a contract saying she’s working as an independent contractor. Are we okay doing this? Answer: It’s unlikely that you’d be able to justify classifying…

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