Unpaid wage recovery

AN ACT Relating to the recovery of unpaid wages; amending RCW 1
49.48.083, 49.48.125, 49.46.320, 49.46.330, 49.46.340, and 49.46.370; 2
reenacting and amending RCW 43.79A.040 and 43.79A.040; adding new 3
sections to chapter 49.48 RCW; adding a new section to chapter 44.28 4
RCW; providing an effective date; providing expiration dates; and 5
prescribing penalties. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:7
Sec. 1. RCW 49.48.083 and 2023 c 243 s 1 are each amended to 8
read as follows: 9
(1)(a) If an employee files a wage complaint with the department, 10
the department ((shall)) may investigate the wage complaint. The 11
department must establish a written process by which wage complaints 12
will be prioritized based on factors including, but not limited to, 13
the harm to the affected employee, the severity of the complaint, the 14
number of employees potentially affected, and the probability of 15
retaliation. The department's enforcement priorities must be made 16
publicly available.17
(b) Unless otherwise resolved, when the department accepts a 18
complaint, the department shall issue either a citation and notice of 19
assessment or a determination of compliance no later than 60 days 20
after the date on which the department ((received)) accepted the wage 21
H-2717.3
HOUSE BILL 2479
State of Washington 69th Legislature 2026 Regular Session
By Representatives Fosse, Schmidt, Berry, Salahuddin, Zahn, Stearns,
Parshley, Goodman, Ramel, Doglio, Bronoske, Cortes, Obras, Pollet,
Macri, Nance, and Callan
Read first time 01/14/26. Referred to Committee on Labor & Workplace
Standards.
p. 1 HB 2479
complaint. The department may extend the time period by providing 1
advance written notice to the employee and the employer setting forth 2
good cause for an extension of the time period and specifying the 3
duration of the extension. 4
(c) The department may not investigate any alleged violation of a 5
wage payment requirement that occurred more than three years before 6
the date that the employee filed the wage complaint.7
(d) The department shall send the citation and notice of 8
assessment or the determination of compliance to both the employer 9
and the employee by service of process or using a method by which the 10
mailing can be tracked or the delivery can be confirmed to their last 11
known addresses. 12
(e) During an investigation, if the department discovers 13
information suggesting additional violations of any requirements 14
related to compensation under this chapter, or any associated rule, 15
the department may expand its investigation and take appropriate 16
enforcement action to ensure compliance, without any additional 17
complaints filed. The department may also initiate an investigation 18
on behalf of one or more employees for a violation of any requirement 19
related to compensation under this chapter or any associated rule, 20
when the department has reason to believe a violation has occurred or 21
will occur.22
(f) The department may conduct a consolidated investigation for 23
any alleged violation of a requirement related to compensation under 24
this chapter or associated rule when there are common questions of 25
law or fact involving employees of the same employer.26
(2) If the department determines that an employer has violated a 27
wage payment requirement and issues to the employer a citation and 28
notice of assessment, the department may order the employer to pay 29
employees all wages owed, including interest of one percent per month 30
on all wages owed, to the employee. The wages and interest owed must 31
be calculated from the first date wages were owed to the employee, 32
except that the department may not order the employer to pay any 33
wages and interest that were owed more than three years before the 34
date the wage complaint was filed with the department.35
(3) If the department determines that the violation of the wage 36
payment requirement was a willful violation, the department also may 37
order the employer to pay the department a civil penalty as specified 38
in (a) of this subsection. The department shall assess a civil 39
penalty against any repeat willful violator as required by RCW 40
p. 2 HB 2479
49.48.125 or any willful violator where the employer previously 1
settled or otherwise resolved a wage complaint more than once in the 2
preceding 12 months or three times in the preceding 24 months.3
(a)(i) A civil penalty for a willful violation of a wage payment 4
requirement shall be not less than ((one thousand dollars)) $1,500 or 5
an amount equal to ((ten)) 10 percent of the total amount of unpaid 6
wages, whichever is greater. ((The maximum civil penalty for a 7
willful violation of a wage payment requirement shall be twenty 8
thousand dollars )) Beginning in 2030, and every three years 9
thereafter, the department shall increase the base penalty amount by 10
the cumulative rate of inflation, rounded to the nearest 50 dollars, 11
using the same process provided in RCW 49.46.020.12
(ii) The department shall, by rule, create a matrix of criteria 13
for the imposition of penalties. In creating the matrix, the 14
department must consider the appropriateness of the penalty with 15
respect to the number of affected employees of the employer subject 16
to the penalty, the gravity of the violation, the size of the 17
employer's business, the good faith of the employer, the source or 18
cause of any error, the promptness of remedy, the employer's history 19
of previous complaints and violations, or other factors the 20
department considers relevant. 21
(b) The department may not assess a civil penalty if the employer 22
reasonably relied on: (i) A rule related to any wage payment 23
requirement; (ii) a written order, ruling, approval, opinion, advice, 24
determination, or interpretation of the director; or (iii) an 25
interpretive or administrative policy issued by the department and 26
filed with the office of the code reviser. In accordance with the 27
department's retention schedule obligations under chapter 40.14 RCW, 28
the department shall maintain a complete and accurate record of all 29
written orders, rulings, approvals, opinions, advice, determinations, 30
and interpretations for purposes of determining whether an employer 31
is immune from civil penalties under (b)(ii) of this subsection.32
(c) The department ((shall)) may waive any civil penalty assessed 33
against an employer under this section if ((the)) all of the 34
following conditions are met: The employer is not a repeat willful 35
violator, the employer has not previously settled or otherwise 36
resolved a wage complaint more than once in the preceding 12 months 37
or three times in the preceding 24 months, and the director 38
determines that the employer has provided payment to the employee of 39
all wages and interest that the department determined that the 40
p. 3 HB 2479
employer owed to the employee, including interest, within ((ten)) 10 1
business days of the employer's receipt of the citation and notice of 2
assessment from the department. 3
(d) The department may ((waive or )) reduce at any time a civil 4
penalty assessed under this section if the director determines that 5
the employer paid all wages and interest owed to an employee.6
(e) ((The)) Until the effective date of this section, the 7
department shall deposit civil penalties paid under this section in 8
the supplemental pension fund established under RCW 51.44.033. 9
Beginning on the effective date of this section, the department shall 10
deposit all civil penalties paid under this chapter in the wage 11
recovery account created under section 3 of this act.12
(4) Upon payment by an employer, and acceptance by an employee, 13
of all wages and interest assessed by the department in a citation 14
and notice of assessment issued to the employer, the fact of such 15
payment by the employer, and of such acceptance by the employee, 16
shall: (a) Constitute a full and complete satisfaction by the 17
employer of all specific wage payment requirements addressed in the 18
citation and notice of assessment; and (b) bar the employee from 19
initiating or pursuing any court action or other judicial or 20
administrative proceeding based on the specific wage payment 21
requirements addressed in the citation and notice of assessment. The 22
citation and notice of assessment shall include a notification and 23
summary of the specific requirements of this subsection.24
(5) The applicable statute of limitations for civil actions is 25
tolled ((during the department's investigation of )) for an employee's 26
wage complaint against an employer once filed with the department . 27
For the purposes of this subsection, ((the department's 28
investigation)) a complaint filed with the department begins on the 29
date the employee files the wage complaint with the department and 30
ends when: (a) The wage complaint is finally determined through a 31
final and binding citation and notice of assessment or determination 32
of compliance; ((or)) (b) the department notifies the employer and 33
the employee in writing that the wage complaint has been otherwise 34
resolved or that the employee has elected to terminate the 35
department's administrative action under RCW 49.48.085; or (c) the 36
department notifies the worker the wage complaint will not be 37
accepted. 38
(6) For all wage complaints filed on or after January 1, 2024, if 39
the department offers the employer the option to resolve a wage 40
p. 4 HB 2479
complaint without a citation and notice of assessment, and the 1
employer chooses to accept the offer, any settlement must include 2
interest of one percent per month on all amounts owed. The employee 3
may request a waiver or reduction of interest as part of the 4
settlement process. 5
NEW SECTION. Sec. 2. A new section is added to chapter 49.48 6
RCW to read as follows: 7
(1)(a) Subject to the availability of funds appropriated for this 8
purpose, the wage recovery program is created and administered by the 9
department. The purpose of the wage recovery program is to allow the 10
department to disburse funds to unpaid low-wage employees, prior to 11
the department issuing a citation and notice of assessment or 12
collecting unpaid wages and interest from an employer, if the 13
employee would otherwise experience immediate economic harm due to 14
the nonpayment of wages. 15
(b) The department may adopt rules to administer the program.16
(2) Beginning July 1, 2028, or when the account created under 17
section 3 of this act contains at least $130,000, whichever is later, 18
an employee is eligible to recover from the wage recovery program if 19
each of the following conditions is satisfied: 20
(a) The employee has filed a wage complaint with the department 21
under RCW 49.48.083 and the department has investigated and 22
determined that the wage complaint has merit; 23
(b) The employee has assigned the employee's wage complaint to 24
the department as required under this section; 25
(c) The employee requested to be considered a recipient of funds 26
from the wage recovery program; 27
(d) The employee's earnings during the preceding 12 months were 28
less than the maximum amount established by the department by rule 29
and according to the process provided by rule; 30
(e) The employee attests that without relief from the wage 31
recovery program, the employee will suffer immediate economic harm; 32
and 33
(f) The employee, as a condition of receiving funds under the 34
wage recovery program, has waived the ability to appeal the citation 35
and any notice of assessment as well as any private right of action.36
(3)(a) To help prevent immediate economic harm to the employee, 37
the department should attempt to disburse funds after the department 38
p. 5 HB 2479
has determined the complaint has merit and at the earliest possible 1
point in the investigation process, as determined by the department.2
(b) In determining an eligible employee's need for funds to 3
prevent immediate economic harm, the department may identify other 4
factors for consideration, such as resources available to the 5
employee, the employee's current employment status, and family size.6
(c) The department may determine the priority of payments made 7
between eligible employees and whether to issue funds for eligible 8
employees. Factors to consider in prioritizing applications for funds 9
from the program should include, but are not limited to, the severity 10
of the potential economic harm to the employee, whether the 11
department is likely to recover the unpaid wages and interest from 12
the employer, and availability of funds to be distributed throughout 13
the year given the seasonality of some industries.14
(4)(a) As a condition of receiving a disbursement of funds under 15
the wage recovery program, the employee must assign to the department 16
the employee's right to any claim on wages and interest owed by the 17
employer. 18
(b) An employee receiving funds from the wage recovery program 19
may not pursue collection, or authorize another entity other than the 20
department to pursue collection on the employee's behalf.21
(c) When an employer pays the department wages and interest for a 22
wage complaint assigned to the department, the department shall 23
deposit into the wage recovery account created under section 3 of 24
this act the amounts necessary to reimburse the account for the 25
disbursements made to the employee, plus interest. The department 26
shall pay any remaining payment of wages and interest by the employer 27
on the claim to the employee. 28
(5) An eligible employee may receive up to 85 percent of wages 29
the employee is anticipated to be owed at the time of disbursement 30
from the fund, up to a maximum of $2,500, from the account.31
(6) Total payments made under the wage recovery program for any 32
fiscal year may not be greater than 80 percent of the account 33
balance, calculated at the end of the previous fiscal year.34
(7)(a) Eligibility for payment under the wage recovery program 35
does not create a right to payment. Payments under this section are 36
discretionary. This section does not create an entitlement to payment 37
or services. This section does not create a right of action.38
(b) The department is not criminally or civilly liable and may 39
not have any penalty or cause of action of any nature arise against 40
p. 6 HB 2479
it regarding the provision or lack of provision of funds for payments 1
under this section. 2
(8) As part of its annual report submitted under RCW 49.12.180, 3
the department shall include a report of the wage recovery program, 4
including the following information: 5
(a) Amounts available in the account for disbursement at the 6
beginning of the year and at the end of the year; 7
(b) Amounts paid out from the account; 8
(c) The number of employees and wage complaints that resulted in 9
payments made from the account; 10
(d) The types and frequency of immediate economic harm identified 11
by the employee through attestation; 12
(e) The total amount of wages and interest owed to employees in 13
notices of assessment where the program issued a payment;14
(f) The average payment made to employees under the program;15
(g) The total amount of penalties assessed in notices of 16
assessment where there were payments made under the program;17
(h) The total recovery from employers of amounts paid from the 18
account; 19
(i) The total outstanding recovery from employers of amounts paid 20
from the account; 21
(j) The total collection of all wages, interest, and penalties 22
assessed in notices of assessment from employers where there was 23
payment from the account; 24
(k) The number of notices of assessment where the wages and 25
interest ultimately assessed were less than the amount paid from the 26
account to the employee; 27
(l) The number of employer appeals of notices of assessment where 28
there was payment from the account; 29
(m) The number of appeals where the final decision resulted in a 30
lower wage owed to the employee than the amount paid out of the 31
account to the employee; 32
(n) The number of appeals where an employee who received payment 33
from the account failed to participate; 34
(o) The number of payments from the account subject to the 85 35
percent disbursement cap. 36
NEW SECTION. Sec. 3. A new section is added to chapter 49.48 37
RCW to read as follows: 38
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The wage recovery account is created in the custody of the state 1
treasurer. All receipts from civil penalties collected under this 2
chapter and chapter 49.46 RCW, and all moneys recovered from wage 3
complaints assigned to the department as authorized under this 4
section must be deposited into the account. Expenditures from the 5
account may be used only for disbursements to employees in accordance 6
with section 2 of this act. Only the director of or the director's 7
designee may authorize expenditures from the account. The account is 8
subject to allotment procedures under chapter 43.88 RCW, but an 9
appropriation is not required for expenditures. 10
Sec. 4. RCW 49.48.125 and 2010 c 42 s 6 are each amended to read 11
as follows: 12
(1) The department shall assess a civil penalty against any 13
repeat willful violator in an amount ((of not less than one thousand 14
dollars or an amount equal to ten percent of the total amount of 15
unpaid wages, whichever is greater. The maximum civil penalty for a 16
repeat willful violator under this section is twenty thousand 17
dollars)) consistent with RCW 49.48.083(3). 18
(2) The department may ((waive or )) reduce a civil penalty 19
assessed under this section if the director determines that the 20
employer has paid all wages and interest owed to the employee.21
NEW SECTION. Sec. 5. A new section is added to chapter 44.28 22
RCW to read as follows: 23
(1) By June 30, 2034, but no sooner than five years from the date 24
the department of labor and industries begins disbursing funds from 25
the wage recovery program, the joint committee must conduct a program 26
and fiscal review of the wage recovery program created in section 2 27
of this act. The committee must evaluate the effectiveness of the 28
program and the extent to which the program helped low-wage employees 29
avoid immediate economic harm. 30
(2) The committee must report its findings to the appropriate 31
committees of the legislature and the governor by December 1, 2035. 32
The report must be prepared in the manner set forth in RCW 44.28.071 33
and 44.28.075 and may include surveying employees regarding their 34
direct lived experiences with accessing the wage recovery program.35
(3) The committee may make recommendations to improve the 36
effectiveness and feasibility of the program. 37
(4) This section expires July 1, 2036. 38
p. 8 HB 2479
Sec. 6. RCW 43.79A.040 and 2025 c 399 s 13 and 2025 c 190 s 3 1
are each reenacted and amended to read as follows: 2
(1) Money in the treasurer's trust fund may be deposited, 3
invested, and reinvested by the state treasurer in accordance with 4
RCW 43.84.080 in the same manner and to the same extent as if the 5
money were in the state treasury, and may be commingled with moneys 6
in the state treasury for cash management and cash balance purposes.7
(2) All income received from investment of the treasurer's trust 8
fund must be set aside in an account in the treasury trust fund to be 9
known as the investment income account. 10
(3) The investment income account may be utilized for the payment 11
of purchased banking services on behalf of treasurer's trust funds 12
including, but not limited to, depository, safekeeping, and 13
disbursement functions for the state treasurer or affected state 14
agencies. The investment income account is subject in all respects to 15
chapter 43.88 RCW, but no appropriation is required for payments to 16
financial institutions. Payments must occur prior to distribution of 17
earnings set forth in subsection (4) of this section.18
(4)(a) Monthly, the state treasurer must distribute the earnings 19
credited to the investment income account to the state general fund 20
except under (b), (c), and (d) of this subsection.21
(b) The following accounts and funds must receive their 22
proportionate share of earnings based upon each account's or fund's 23
average daily balance for the period: The 24/7 sobriety account, the 24
Washington promise scholarship account, the Gina Grant Bull memorial 25
legislative page scholarship account, the Rosa Franklin legislative 26
internship program scholarship account, the Washington advanced 27
college tuition payment program account, the Washington college 28
savings program account, the accessible communities account, the 29
Washington achieving a better life experience program account, the 30
Washington career and college pathways innovation challenge program 31
account, the community and technical college innovation account, the 32
agricultural local fund, the American Indian scholarship endowment 33
fund, the behavioral health loan repayment and scholarship program 34
account, the Billy Frank Jr. national statuary hall collection fund, 35
the foster care scholarship endowment fund, the foster care endowed 36
scholarship trust fund, the contract harvesting revolving account, 37
the Washington state combined fund drive account, the county 911 38
excise tax account, the county road administration board emergency 39
loan account, the toll collection account, the developmental 40
p. 9 HB 2479
disabilities endowment trust fund, the energy account, the energy 1
facility site evaluation council account, the fair fund, the family 2
and medical leave insurance account, the Fern Lodge maintenance 3
account, the fish and wildlife federal lands revolving account, the 4
natural resources federal lands revolving account, the food animal 5
veterinarian conditional scholarship account, the forest health 6
revolving account, the fruit and vegetable inspection account, the 7
educator conditional scholarship account, the game farm alternative 8
account, the GET ready for math and science scholarship account, the 9
Washington global health technologies and product development 10
account, the grain inspection revolving fund, the Washington history 11
day account, the industrial insurance rainy day fund, the law 12
enforcement officers' and firefighters' plan 2 expense fund, the 13
local tourism promotion account, the low-income home rehabilitation 14
account, the medication for people living with HIV rebate revenue 15
account, the homeowner recovery account, the wage recovery account, 16
the multiagency permitting team account, the northeast Washington 17
wolf-livestock management account, the pollution liability insurance 18
program trust account, the public use general aviation airport loan 19
revolving account, the regional transportation investment district 20
account, the rural rehabilitation account, the Washington sexual 21
assault kit account, the stadium and exhibition center account, the 22
youth athletic facility account, the self-insurance revolving fund, 23
the children's trust fund, the Washington horse racing commission 24
Washington bred owners' bonus fund and breeder awards account, the 25
Washington horse racing commission class C purse fund account, the 26
individual development account program account, the Washington horse 27
racing commission operating account, the life sciences discovery 28
fund, the Washington state library-archives building account, the 29
reduced cigarette ignition propensity account, the center for deaf 30
and hard of hearing youth account, the school for the blind account, 31
the public employees' and retirees' insurance reserve fund, the 32
school employees' benefits board insurance reserve fund, the public 33
employees' and retirees' insurance account, the school employees' 34
insurance account, the long-term services and supports trust account, 35
the radiation perpetual maintenance fund, the Indian health 36
improvement reinvestment account, the department of licensing tuition 37
recovery trust fund, the student achievement council tuition recovery 38
trust fund, the tuition recovery trust fund, the industrial insurance 39
premium refund account, the mobile home park relocation fund, the 40
p. 10 HB 2479
natural resources deposit fund, the Washington state health insurance 1
pool account, the federal forest revolving account, the Washington 2
saves administrative trust account, and the library operations 3
account. 4
(c) The following accounts and funds must receive 80 percent of 5
their proportionate share of earnings based upon each account's or 6
fund's average daily balance for the period: The advance right-of-way 7
revolving fund, the advanced environmental mitigation revolving 8
account, the federal narcotics asset forfeitures account, the high 9
occupancy vehicle account, the local rail service assistance account, 10
and the miscellaneous transportation programs account.11
(d) Any state agency that has independent authority over accounts 12
or funds not statutorily required to be held in the custody of the 13
state treasurer that deposits funds into a fund or account in the 14
custody of the state treasurer pursuant to an agreement with the 15
office of the state treasurer shall receive its proportionate share 16
of earnings based upon each account's or fund's average daily balance 17
for the period. 18
(5) In conformance with Article II, section 37 of the state 19
Constitution, no trust accounts or funds shall be allocated earnings 20
without the specific affirmative directive of this section.21
Sec. 7. RCW 43.79A.040 and 2025 c 399 s 14 and 2025 c 190 s 4 22
are each reenacted and amended to read as follows:23
(1) Money in the treasurer's trust fund may be deposited, 24
invested, and reinvested by the state treasurer in accordance with 25
RCW 43.84.080 in the same manner and to the same extent as if the 26
money were in the state treasury, and may be commingled with moneys 27
in the state treasury for cash management and cash balance purposes.28
(2) All income received from investment of the treasurer's trust 29
fund must be set aside in an account in the treasury trust fund to be 30
known as the investment income account. 31
(3) The investment income account may be utilized for the payment 32
of purchased banking services on behalf of treasurer's trust funds 33
including, but not limited to, depository, safekeeping, and 34
disbursement functions for the state treasurer or affected state 35
agencies. The investment income account is subject in all respects to 36
chapter 43.88 RCW, but no appropriation is required for payments to 37
financial institutions. Payments must occur prior to distribution of 38
earnings set forth in subsection (4) of this section.39
p. 11 HB 2479
(4)(a) Monthly, the state treasurer must distribute the earnings 1
credited to the investment income account to the state general fund 2
except under (b), (c), and (d) of this subsection. 3
(b) The following accounts and funds must receive their 4
proportionate share of earnings based upon each account's or fund's 5
average daily balance for the period: The 24/7 sobriety account, the 6
Washington promise scholarship account, the Gina Grant Bull memorial 7
legislative page scholarship account, the Rosa Franklin legislative 8
internship program scholarship account, the Washington advanced 9
college tuition payment program account, the Washington college 10
savings program account, the accessible communities account, the 11
Washington achieving a better life experience program account, the 12
Washington career and college pathways innovation challenge program 13
account, the community and technical college innovation account, the 14
agricultural local fund, the American Indian scholarship endowment 15
fund, the behavioral health loan repayment and scholarship program 16
account, the Billy Frank Jr. national statuary hall collection fund, 17
the foster care scholarship endowment fund, the foster care endowed 18
scholarship trust fund, the contract harvesting revolving account, 19
the Washington state combined fund drive account, the county 911 20
excise tax account, the county road administration board emergency 21
loan account, the toll collection account, the developmental 22
disabilities endowment trust fund, the energy account, the energy 23
facility site evaluation council account, the fair fund, the family 24
and medical leave insurance account, the Fern Lodge maintenance 25
account, the fish and wildlife federal lands revolving account, the 26
natural resources federal lands revolving account, the food animal 27
veterinarian conditional scholarship account, the forest health 28
revolving account, the fruit and vegetable inspection account, the 29
educator conditional scholarship account, the game farm alternative 30
account, the GET ready for math and science scholarship account, the 31
Washington global health technologies and product development 32
account, the grain inspection revolving fund, the Washington history 33
day account, the industrial insurance rainy day fund, the law 34
enforcement officers' and firefighters' plan 2 expense fund, the 35
local tourism promotion account, the low-income home rehabilitation 36
account, the medication for people living with HIV rebate revenue 37
account, the homeowner recovery account, the wage recovery account, 38
the multiagency permitting team account, the northeast Washington 39
wolf-livestock management account, the public use general aviation 40
p. 12 HB 2479
airport loan revolving account, the regional transportation 1
investment district account, the rural rehabilitation account, the 2
Washington sexual assault kit account, the stadium and exhibition 3
center account, the youth athletic facility account, the self-4
insurance revolving fund, the children's trust fund, the Washington 5
horse racing commission Washington bred owners' bonus fund and 6
breeder awards account, the Washington horse racing commission class 7
C purse fund account, the individual development account program 8
account, the Washington horse racing commission operating account, 9
the life sciences discovery fund, the Washington state library-10
archives building account, the reduced cigarette ignition propensity 11
account, the center for deaf and hard of hearing youth account, the 12
school for the blind account, the public employees' and retirees' 13
insurance reserve fund, the school employees' benefits board 14
insurance reserve fund, the public employees' and retirees' insurance 15
account, the school employees' insurance account, the long-term 16
services and supports trust account, the radiation perpetual 17
maintenance fund, the Indian health improvement reinvestment account, 18
the department of licensing tuition recovery trust fund, the student 19
achievement council tuition recovery trust fund, the tuition recovery 20
trust fund, the industrial insurance premium refund account, the 21
mobile home park relocation fund, the natural resources deposit fund, 22
the Washington state health insurance pool account, the federal 23
forest revolving account, the Washington saves administrative trust 24
account, and the library operations account. 25
(c) The following accounts and funds must receive 80 percent of 26
their proportionate share of earnings based upon each account's or 27
fund's average daily balance for the period: The advance right-of-way 28
revolving fund, the advanced environmental mitigation revolving 29
account, the federal narcotics asset forfeitures account, the high 30
occupancy vehicle account, the local rail service assistance account, 31
and the miscellaneous transportation programs account.32
(d) Any state agency that has independent authority over accounts 33
or funds not statutorily required to be held in the custody of the 34
state treasurer that deposits funds into a fund or account in the 35
custody of the state treasurer pursuant to an agreement with the 36
office of the state treasurer shall receive its proportionate share 37
of earnings based upon each account's or fund's average daily balance 38
for the period. 39
p. 13 HB 2479
(5) In conformance with Article II, section 37 of the state 1
Constitution, no trust accounts or funds shall be allocated earnings 2
without the specific affirmative directive of this section.3
Sec. 8. RCW 49.46.320 and 2022 c 281 s 3 are each amended to 4
read as follows: 5
(1)(a) If a driver files a complaint with the department alleging 6
that a transportation network company failed to provide any 7
compensation amounts due to the driver under RCW 49.46.300, the 8
department shall investigate the complaint under this section. Unless 9
otherwise resolved, the department shall issue either a citation and 10
notice of assessment or a determination of compliance no later than 11
60 days after the date on which the department received the 12
compensation-related complaint. The department may extend the time 13
period by providing advance written notice to the driver and the 14
transportation network company setting forth good cause for an 15
extension of the time period and specifying the duration of the 16
extension. 17
(b) The department may not investigate any alleged compensation-18
related violation that occurred more than three years before the date 19
that the driver filed the compensation-related complaint.20
(c) The department shall send the citation and notice of 21
assessment or the determination of compliance to both the 22
transportation network company and the driver by service of process 23
or using a method by which the mailing can be tracked or the delivery 24
can be confirmed to their last known addresses. A transportation 25
network company may designate a mailing address of record for 26
service, and additionally may provide an email address to which the 27
department shall direct electronic courtesy copies of mailed 28
correspondence, if such email address is provided.29
(2) If the department determines that a transportation network 30
company has violated a compensation requirement in RCW 49.46.300 and 31
issues to the transportation network company a citation and notice of 32
assessment, the department may order the transportation network 33
company to pay drivers all compensation owed, including interest of 34
one percent per month on all compensation owed, to the driver. The 35
compensation and interest owed must be calculated from the first date 36
compensation was owed to the driver, except that the department may 37
not order the transportation network company to pay any compensation 38
p. 14 HB 2479
and interest that were owed more than three years before the date the 1
complaint was filed with the department. 2
(3) If the department determines that the compensation-related 3
violation was a willful violation, and the transportation network 4
company fails to take corrective action, the department also may 5
order the transportation network company to pay the department a 6
civil penalty as specified in (a) of this subsection.7
(a) A civil penalty for a willful violation shall be not less 8
than $1,000 or an amount equal to 10 percent of the total amount of 9
unpaid compensation per claimant, whichever is greater. The maximum 10
civil penalty for a willful violation of requirements in RCW 11
49.46.300 shall be $20,000 per claimant. 12
(b) The department may not assess a civil penalty if the 13
transportation network company reasonably relied on: (i) A rule 14
related to any requirements in this section; (ii) a written order, 15
ruling, approval, opinion, advice, determination, or interpretation 16
of the director; or (iii) an interpretive or administrative policy 17
issued by the department and filed with the office of the code 18
reviser. In accordance with the department's retention schedule 19
obligations under chapter 40.14 RCW, the department shall maintain a 20
complete and accurate record of all written orders, rulings, 21
approvals, opinions, advice, determinations, and interpretations for 22
purposes of determining whether a transportation network company is 23
immune from civil penalties under this subsection (3)(b).24
(c) The department shall waive any civil penalty assessed against 25
a transportation network company under this section if the 26
transportation network company is not a repeat willful violator, and 27
the director determines that the transportation network company has 28
provided payment to the driver of all compensation that the 29
department determined that the transportation network company owed to 30
the driver, including interest, within 30 days of the transportation 31
network company's receipt of the citation and notice of assessment 32
from the department. 33
(d) The department may waive or reduce at any time a civil 34
penalty assessed under this section if the director determines that 35
the transportation network company paid all compensation and interest 36
owed to a driver. 37
(e) The department shall deposit civil penalties paid under this 38
section in the ((supplemental pension fund established under RCW 39
p. 15 HB 2479
51.44.033)) wage recovery account created under section 3 of this 1
act. 2
(4) Upon payment by a transportation network company, and 3
acceptance by a driver, of all compensation and interest assessed by 4
the department in a citation and notice of assessment issued to the 5
transportation network company, the fact of such payment by the 6
transportation network company, and of such acceptance by the driver, 7
shall: (a) Constitute a full and complete satisfaction by the 8
transportation network company of all specific requirements of RCW 9
49.46.300 addressed in the citation and notice of assessment; and (b) 10
bar the driver from initiating or pursuing any court action or other 11
judicial or administrative proceeding, including arbitration, based 12
on the specific requirements addressed in the citation and notice of 13
assessment. The citation and notice of assessment shall include a 14
notification and summary of the specific requirements of RCW 15
49.46.300. 16
(5) The applicable statute of limitations for civil actions is 17
tolled during the department's investigation of a driver's complaint 18
against a transportation network company. For the purposes of this 19
subsection, the department's investigation begins on the date the 20
driver files the complaint with the department and ends when: (a) The 21
complaint is finally determined through a final and binding citation 22
and notice of assessment or determination of compliance; or (b) the 23
department notifies the transportation network company and the driver 24
in writing that the complaint has been otherwise resolved or that the 25
driver has elected to terminate the department's administrative 26
action under subsection (12) of this section. 27
(6) A person, firm, or corporation aggrieved by a citation and 28
notice of assessment or a determination of compliance issued by the 29
department under this section or the assessment of a civil penalty 30
due to a determination of status as a repeat willful violator may 31
appeal the citation and notice of assessment, the determination of 32
compliance, or the assessment of a civil penalty to the director by 33
filing a notice of appeal with the director within 30 days of the 34
department's service, as provided in subsection (1) of this section, 35
on the aggrieved party of the citation and notice of assessment, the 36
determination of compliance, or the assessment of a civil penalty. A 37
citation and notice of assessment, a determination of compliance, or 38
an assessment of a civil penalty not appealed within 30 days is final 39
and binding, and not subject to further appeal. 40
p. 16 HB 2479
(7) A notice of appeal filed with the director under this section 1
shall stay the effectiveness of the citation and notice of 2
assessment, the determination of compliance, or the assessment of a 3
civil penalty pending final review of the appeal by the director as 4
provided for in chapter 34.05 RCW. 5
(8) Upon receipt of a notice of appeal, the director shall assign 6
the hearing to an administrative law judge of the office of 7
administrative hearings to conduct the hearing and issue an initial 8
order. The hearing and review procedures shall be conducted in 9
accordance with chapter 34.05 RCW, and the standard of review by the 10
administrative law judge of an appealed citation and notice of 11
assessment, an appealed determination of compliance, or an appealed 12
assessment of a civil penalty shall be de novo. Any party who seeks 13
to challenge an initial order shall file a petition for 14
administrative review with the director within 30 days after service 15
of the initial order. The director shall conduct administrative 16
review in accordance with chapter 34.05 RCW. 17
(9) The director shall issue all final orders after appeal of the 18
initial order. The final order of the director is subject to judicial 19
review in accordance with chapter 34.05 RCW. 20
(10) Orders that are not appealed within the time period 21
specified in this section and chapter 34.05 RCW are final and 22
binding, and not subject to further appeal. 23
(11) Absent good cause, a transportation network company that 24
fails to allow adequate inspection of records in an investigation by 25
the department under this chapter within a reasonable time period may 26
not use such records in any appeal under this section to challenge 27
the correctness of any determination by the department of wages owed 28
or penalties assessed. 29
(12) A driver who has filed a complaint under this section with 30
the department may elect to terminate the department's administrative 31
action, thereby preserving any private right of action, if any 32
exists, by providing written notice to the department within 10 33
business days after the driver's receipt of the department's citation 34
and notice of assessment. 35
(13) If the driver elects to terminate the department's 36
administrative action: (a) The department shall immediately 37
discontinue its action against the transportation network company; 38
(b) the department shall vacate a citation and notice of assessment 39
already issued by the department to the transportation network 40
p. 17 HB 2479
company; and (c) the citation and notice of assessment, and any 1
related findings of fact or conclusions of law by the department, and 2
any payment or offer of payment by the transportation network company 3
of the compensation, including interest, assessed by the department 4
in the citation and notice of assessment, shall not be admissible in 5
any court action or other judicial or administrative proceeding.6
(14) Nothing in this section shall be construed to limit or 7
affect: (a) The right of any driver to pursue any judicial, 8
administrative, or other action available with respect to a 9
transportation network company; (b) the right of the department to 10
pursue any judicial, administrative, or other action available with 11
respect to a driver that is identified as a result of a complaint for 12
a violation of RCW 49.46.300; or (c) the right of the department to 13
pursue any judicial, administrative, or other action available with 14
respect to a transportation network company in the absence of a 15
complaint for a violation of RCW 49.46.300. For purposes of this 16
subsection, "driver" means a driver other than a driver who has filed 17
a complaint with the department and who thereafter has elected to 18
terminate the department's administrative action as provided in 19
subsection (1) of this section. 20
(15) After a final order is issued under this section, and served 21
as provided in subsection (1) of this section, if a transportation 22
network company defaults in the payment of: (a) Any compensation 23
determined by the department to be owed to a driver, including 24
interest; or (b) any civil penalty ordered by the department under 25
this section, the director may file with the clerk of any county 26
within the state a warrant in the amount of the payment plus any 27
filing fees. The clerk of the county in which the warrant is filed 28
shall immediately designate a superior court cause number for the 29
warrant, and the clerk shall cause to be entered in the judgment 30
docket under the superior court cause number assigned to the warrant, 31
the name of the transportation network company mentioned in the 32
warrant, the amount of payment due plus any filing fees, and the date 33
when the warrant was filed. The aggregate amount of the warrant as 34
docketed becomes a lien upon the title to, and interest in, all real 35
and personal property of the transportation network company against 36
whom the warrant is issued, the same as a judgment in a civil case 37
docketed with the superior court clerk. The sheriff shall proceed 38
upon the warrant in all respects and with like effect as prescribed 39
by law with respect to execution or other process issued against 40
p. 18 HB 2479
rights or property upon judgment in a court of competent 1
jurisdiction. The warrant so docketed is sufficient to support the 2
issuance of writs of garnishment in favor of the state in a manner 3
provided by law in case of judgment, wholly or partially unsatisfied. 4
The clerk of the court is entitled to a filing fee which will be 5
added to the amount of the warrant. A copy of the warrant shall be 6
served on the transportation network company, as provided in 7
subsection (1) of this section, within three days of filing with the 8
clerk. 9
(16)(a) The director may issue to any person, firm, corporation, 10
other entity, municipal corporation, political subdivision of the 11
state, public corporation, or any agency of the state, a notice and 12
order to withhold and deliver property of any kind when he or she has 13
reason to believe that there is in the possession of the person, 14
firm, corporation, other entity, municipal corporation, political 15
subdivision of the state, public corporation, or agency of the state, 16
property that is or will become due, owing, or belonging to a 17
transportation network company upon whom a notice of assessment has 18
been served by the department for payments or civil penalties due to 19
the department. The effect of a notice and order is continuous from 20
the date the notice and order is first made until the liability out 21
of which the notice and order arose is satisfied or becomes 22
unenforceable because of lapse of time. The department shall release 23
the notice and order when the liability out of which the notice and 24
order arose is satisfied or becomes unenforceable by reason of lapse 25
of time and shall notify the person against whom the notice and order 26
was made that the notice and order has been released.27
(b) The notice and order to withhold and deliver must be served 28
by the sheriff of the county or by the sheriff's deputy, by certified 29
mail, return receipt requested, or by the director. A person, firm, 30
corporation, other entity, municipal corporation, political 31
subdivision of the state, public corporation, or agency of the state 32
upon whom service has been made shall answer the notice within 20 33
days exclusive of the day of service, under oath and in writing, and 34
shall make true answers to the matters inquired of in the notice and 35
order. Upon service of the notice and order, if the party served 36
possesses any property that may be subject to the claim of the 37
department, the party shall promptly deliver the property to the 38
director. The director shall hold the property in trust for 39
application on the transportation network company's indebtedness to 40
p. 19 HB 2479
the department, or for return without interest, in accordance with a 1
final determination of a petition for review. In the alternative, the 2
party shall furnish a good and sufficient surety bond satisfactory to 3
the director conditioned upon final determination of liability. If a 4
party served and named in the notice fails to answer the notice 5
within the time prescribed in this section, the court may render 6
judgment by default against the party for the full amount claimed by 7
the director in the notice, together with costs. If a notice is 8
served upon a transportation network company and the property subject 9
to it is compensation, the transportation network company may assert 10
in the answer all exemptions provided for by chapter 6.27 RCW to 11
which the compensation earner is entitled. 12
(c) As an alternative to the methods of service described in this 13
section, the department may electronically serve a financial 14
institution with a notice and order to withhold and deliver by 15
providing a list of its outstanding warrants, except those for which 16
a payment agreement is in good standing, to the department of 17
revenue. The department of revenue may include the warrants provided 18
by the department in a notice and order to withhold and deliver 19
served under RCW 82.32.235(3). A financial institution that is served 20
with a notice and order to withhold and deliver under this subsection 21
(16)(c) must answer the notice within the time period applicable to 22
service under RCW 82.32.235(3). The department and the department of 23
revenue may adopt rules to implement this subsection (16)(c).24
(17)(a) In addition to the procedure for collection of 25
compensation owed, including interest, and civil penalties as set 26
forth in this section, the department may recover compensation owed, 27
including interest, and civil penalties assessed under RCW 49.48.083 28
in a civil action brought in a court of competent jurisdiction of the 29
county where the violation is alleged to have occurred.30
(b) The department may use the procedures under this section to 31
foreclose compensation liens established under chapter 60.90 RCW. 32
When the department is foreclosing on a compensation lien, the date 33
the compensation lien was originally filed shall be the date by which 34
priority is determined, regardless of the date the warrant is filed 35
under this section. 36
(18) Whenever any transportation network company quits business, 37
sells out, exchanges, or otherwise disposes of the transportation 38
network company's business or stock of goods, any person who becomes 39
a successor to the business becomes liable for the full amount of any 40
p. 20 HB 2479
outstanding citation and notice of assessment or penalty against the 1
transportation network company's business under this chapter if, at 2
the time of the conveyance of the business, the successor has: (a) 3
Actual knowledge of the fact and amount of the outstanding citation 4
and notice of assessment; or (b) a prompt, reasonable, and effective 5
means of accessing and verifying the fact and amount of the 6
outstanding citation and notice of assessment from the department. If 7
the citation and notice of assessment or penalty is not paid in full 8
by the transportation network company within 10 days of the date of 9
the sale, exchange, or disposal, the successor is liable for the 10
payment of the full amount of the citation and notice of assessment 11
or penalty, and payment thereof by the successor must, to the extent 12
thereof, be deemed a payment upon the purchase price. If the payment 13
is greater in amount than the purchase price, the amount of the 14
difference becomes a debt due the successor from the transportation 15
network company. 16
(19) This section does not affect other collection remedies that 17
are otherwise provided by law. 18
Sec. 9. RCW 49.46.330 and 2022 c 281 s 4 are each amended to 19
read as follows: 20
(1) If a driver files a complaint with the department alleging a 21
violation of any noncompensation requirement of RCW 49.46.300 (7) 22
through (10) and (12) through (14), the department shall investigate 23
the complaint under this section. 24
(a) The department may not investigate any such alleged violation 25
that occurred more than three years before the date that the driver 26
filed the complaint or prior to this law going into effect.27
(b) If a driver files a timely complaint with the department, the 28
department will investigate the complaint and issue either a citation 29
assessing a civil penalty or a closure letter within 60 days after 30
the date on which the department received the complaint, unless the 31
complaint is otherwise resolved. The department may extend the period 32
by providing advance written notice to the driver and the 33
transportation network company setting forth good cause for an 34
extension of the period, and specifying the duration of the 35
extension. 36
(c) The department shall send notice of either a citation and 37
notice of assessment or a citation assessing a civil penalty or the 38
closure letter to both the transportation network company and the 39
p. 21 HB 2479
driver by service of process or by United States mail using a method 1
by which delivery of such written notice to the transportation 2
network company can be tracked and confirmed. A transportation 3
network company may designate a mailing address of record for 4
service, and additionally may provide an email address to which the 5
department shall direct electronic courtesy copies of mailed 6
correspondence, if such email address is provided. 7
(2) If the department's investigation finds that the driver's 8
allegation cannot be substantiated, the department shall issue a 9
closure letter to the driver and the transportation network company 10
detailing such finding. 11
(3) If the department determines that the violation was a willful 12
violation, and the transportation network company fails to take 13
corrective action, the department may order the transportation 14
network company to pay the department a civil penalty as specified in 15
(a) of this subsection. 16
(a) A citation assessing a civil penalty for a willful violation 17
will be $1,000 for each willful violation. For a repeat willful 18
violator, the citation assessing a civil penalty will not be less 19
than $2,000 for each repeat willful violation per claimant, but no 20
greater than $20,000 for each repeat willful violation per claimant.21
(b) The department may not issue a citation assessing a civil 22
penalty if the transportation network company reasonably relied on: 23
(i) A written order, ruling, approval, opinion, advice, 24
determination, or interpretation of the director; or (ii) an 25
interpretive or administrative policy issued by the department and 26
filed with the office of the code reviser. In accordance with the 27
department's retention schedule obligations under chapter 40.14 RCW, 28
the department shall maintain a complete and accurate record of all 29
written orders, rulings, approvals, opinions, advice, determinations, 30
and interpretations for purposes of determining whether a 31
transportation network company is immune from civil penalties under 32
this subsection (3)(b). 33
(c) The department may, at any time, waive or reduce a civil 34
penalty assessed under this section if the director determines that 35
the transportation network company has taken corrective action to 36
resolve the violation. 37
(d) The department shall deposit civil penalties paid under this 38
section in the ((supplemental pension fund established under RCW 39
p. 22 HB 2479
51.44.033)) wage recovery account created under section 3 of this 1
act. 2
(e) If the department determines that a transportation network 3
company has violated RCW 49.46.300(12), and issues to the 4
transportation network company a citation and notice of assessment, 5
the department may order the transportation network company to pay 6
all owed remittance payments as required under RCW 49.46.300(12). The 7
department shall deposit all owed remittance payments in the driver 8
resource center fund. 9
(4) For purposes of this section, the following definitions 10
apply: 11
(a) "Repeat willful violator" means any transportation network 12
company that has been the subject of a final and binding citation for 13
a willful violation of one or more rights under this chapter and all 14
applicable rules, within three years of the date of issuance of the 15
most recent citation for a willful violation of one or more such 16
rights. 17
(b) "Willful" means a knowing and intentional action that is 18
neither accidental nor the result of a bona fide dispute.19
(5) A person, firm, or corporation aggrieved by a citation 20
assessing a civil penalty issued by the department under this section 21
may appeal the citation assessing a civil penalty to the director by 22
filing a notice of appeal with the director within 30 days of the 23
department's issuance of the citation assessing a civil penalty. A 24
citation assessing a civil penalty not appealed within 30 days is 25
final and binding, and not subject to further appeal.26
(6) A notice of appeal filed with the director under this section 27
stays the effectiveness of the citation assessing a civil penalty 28
pending final review of the appeal by the director as provided for in 29
chapter 34.05 RCW. 30
(7) Upon receipt of a notice of appeal, the director shall assign 31
the hearing to an administrative law judge of the office of 32
administrative hearings to conduct the hearing and issue an initial 33
order. The hearing and review procedures must be conducted in 34
accordance with chapter 34.05 RCW, and the standard of review by the 35
administrative law judge of an appealed citation assessing a civil 36
penalty must be de novo. Any party who seeks to challenge an initial 37
order shall file a petition for administrative review with the 38
director within 30 days after service of the initial order. The 39
p. 23 HB 2479
director shall conduct administrative review in accordance with 1
chapter 34.05 RCW. 2
(8) The director shall issue all final orders after appeal of the 3
initial order. The final order of the director is subject to judicial 4
review in accordance with chapter 34.05 RCW. 5
(9) Orders that are not appealed within the period specified in 6
this section and chapter 34.05 RCW are final and binding, and not 7
subject to further appeal. 8
(10) Absent good cause, a transportation network company that 9
fails to allow adequate inspection of records in an investigation by 10
the department under this section within a reasonable time period may 11
not use such records in any appeal under such rules to challenge the 12
correctness of any determination by the department of penalties 13
assessed. 14
(11) Collections of unpaid citations assessing civil penalties 15
will be handled pursuant to the procedures outlined in RCW 49.48.086.16
(12) If the department determines that a transportation network 17
company has violated the requirements in RCW 49.46.300(12) to collect 18
and remit the established fee, and issues to the transportation 19
network company a citation and notice of assessment, the department 20
may order the transportation network company to pay all owed 21
remittance payments as required under RCW 49.46.300(12). The 22
department shall deposit all unpaid remittance amounts into the 23
driver resource center fund established in RCW 49.46.310.24
Sec. 10. RCW 49.46.340 and 2022 c 281 s 5 are each amended to 25
read as follows: 26
(1) It is unlawful for a transportation network company to 27
interfere with, restrain, or deny the exercise of any driver right 28
provided under or in connection with RCW 49.46.300 and 49.46.210(5). 29
This means a transportation network company may not use a driver's 30
exercise of any of the rights provided under RCW 49.46.300 and 31
49.46.210(5) as a factor in any action that adversely affects the 32
driver's use of the transportation network. 33
(2) It is unlawful for a transportation network company to adopt 34
or enforce any policy that counts the use of earned paid sick time 35
for a purpose authorized under RCW 49.46.210(1) (b) and (c) as time 36
off the platform that may lead to or result in temporary or permanent 37
deactivation by the transportation network company against the 38
driver. 39
p. 24 HB 2479
(3) It is unlawful for a transportation network company to take 1
any adverse action against a driver because the driver has exercised 2
their rights provided under RCW 49.46.300 and 49.46.210(5). Such 3
rights include, but are not limited to: Filing an action, or 4
instituting or causing to be instituted any proceeding under or 5
related to RCW 49.46.300 and 49.46.210(5), or testifying or intending 6
to testify in any such proceeding related to any rights provided 7
under RCW 49.46.300 and 49.46.210(5). 8
(4) Adverse action means any action taken or threatened by a 9
transportation network company against a driver for the driver's 10
exercise of rights under RCW 49.46.300 and 49.46.210(5).11
(5) A driver who believes that he or she was subject to 12
retaliation by a transportation network company for the exercise of 13
any driver right under RCW 49.46.300 and 49.46.210(5) may file a 14
complaint with the department within 180 days of the alleged 15
retaliatory action. The department may, at its discretion, extend the 16
180-day period on recognized equitable principles or because of 17
extenuating circumstances beyond the control of the department. The 18
department may extend the 180-day period when there is a 19
preponderance of evidence that the transportation network company has 20
concealed or misled the driver regarding the alleged retaliatory 21
action. 22
(6) If a driver files a timely complaint with the department 23
alleging retaliation, the department shall investigate the complaint 24
and issue either a citation and notice of assessment or a 25
determination of compliance within 90 days after the date on which 26
the department received the complaint, unless the complaint is 27
otherwise resolved. The department may extend the period by providing 28
advance written notice to the driver and the transportation network 29
company setting forth good cause for an extension of the period, and 30
specifying the duration of the extension. 31
(7) The department may consider a complaint to be otherwise 32
resolved when the driver and the transportation network company reach 33
a mutual agreement to remedy any retaliatory action, or the driver 34
voluntarily and on the driver's own initiative withdraws the 35
complaint. 36
(8) If the department's investigation finds that the driver's 37
allegation of retaliation cannot be substantiated, the department 38
shall issue a determination of compliance to the driver and the 39
transportation network company detailing such finding.40
p. 25 HB 2479
(9) If the department's investigation finds that the 1
transportation network company retaliated against the driver, and the 2
complaint is not otherwise resolved, the department may, at its 3
discretion, notify the transportation network company that the 4
department intends to issue a citation and notice of assessment, and 5
may provide up to 30 days after the date of such notification for the 6
transportation network company to take corrective action to remedy 7
the retaliatory action. If the complaint is not otherwise resolved, 8
then the department shall issue a citation and notice of assessment. 9
The department's citation and notice of assessment may:10
(a) Order the transportation network company to make payable to 11
the driver earnings that the driver did not receive due to the 12
transportation network company's retaliatory action, including 13
interest of one percent per month on all earnings owed. The earnings 14
and interest owed will be calculated from the first date earnings 15
were owed to the driver; 16
(b) Order the transportation network company to restore the 17
contract of the driver, unless otherwise prohibited by law;18
(c) Order the transportation network company to cease using any 19
policy that counts the use of earned paid sick time as time off the 20
platform or an adverse action against the driver; 21
(d) For the first violation, order the transportation network 22
company to pay the department a civil penalty established in 23
subsection (15) of this section; and 24
(e) For a repeat violation, order the transportation network 25
company to pay the department up to double the civil penalty 26
established in subsection (15) of this section. 27
(10) The department shall send the citation and notice of 28
assessment or determination of compliance to both the transportation 29
network company and driver by service of process or using a method by 30
which the mailing can be tracked or the delivery can be confirmed to 31
their last known addresses. A transportation network company may 32
designate a mailing address of record for service, and additionally 33
may provide an email address to which the department shall direct 34
electronic courtesy copies of mailed correspondence, if such email 35
address is provided. 36
(11) During an investigation of the driver's retaliation 37
complaint, if the department discovers information suggesting alleged 38
violations by the transportation network company of the driver's 39
other rights under this chapter, and all applicable rules, the 40
p. 26 HB 2479
department may investigate and take appropriate enforcement action 1
without requiring the driver to file a new or separate complaint. In 2
the event the department so expands an investigation, it shall 3
provide reasonable notice to the transportation network company that 4
it is doing so. If the department determines that the transportation 5
network company violated additional rights of the driver under this 6
chapter, and all applicable rules, the transportation network company 7
may be subject to additional enforcement actions for the violation of 8
such rights. If the department discovers information alleging the 9
transportation network company retaliated against or otherwise 10
violated rights of other drivers under this chapter, and all 11
applicable rules, the department may launch further investigation 12
under this chapter, and all applicable rules, without requiring 13
additional complaints to be filed. 14
(12) The department may prioritize retaliation investigations as 15
needed to allow for timely resolution of complaints.16
(13) Nothing in this section impedes the department's ability to 17
investigate under the authority prescribed in RCW 49.48.040.18
(14) Nothing in this section precludes a driver's right to pursue 19
private legal action, if any exists. 20
(15) If the department's investigation finds that a 21
transportation network company retaliated against a driver, pursuant 22
to the procedures outlined in this section, the department may order 23
the transportation network company to pay the department a civil 24
penalty. A civil penalty for a transportation network company's 25
retaliatory action will not be less than $1,000 or an amount equal to 26
10 percent of the total amount of unpaid earnings attributable to the 27
retaliatory action per claimant, whichever is greater. The maximum 28
civil penalty for a transportation network company's retaliatory 29
action shall be $20,000 per claimant for the first violation, and 30
$40,000 for each repeat violation. 31
(16) The department may, at any time, waive or reduce any civil 32
penalty assessed against a transportation network company under this 33
section if the department determines that the transportation network 34
company has taken corrective action to remedy the retaliatory action.35
(17) The department will deposit civil penalties paid under this 36
section in the ((supplemental pension fund established under RCW 37
51.44.033)) wage recovery account created under section 3 of this 38
act. 39
p. 27 HB 2479
(18) Collections of amounts owed for unpaid citations and notices 1
of assessment, as detailed in this section, will be handled pursuant 2
to the procedures outlined in RCW 49.48.086. 3
(19) A person, firm, or corporation aggrieved by a citation and 4
notice of assessment or a determination of compliance may, within 30 5
days after the date of such determination, submit a request for 6
reconsideration to the department setting forth the grounds for 7
seeking such reconsideration, or submit an appeal to the director 8
pursuant to the procedures outlined in subsection (22) of this 9
section. If the department receives a timely request for 10
reconsideration, the department shall either accept the request or 11
treat the request as a notice of appeal. 12
(20) If a request for reconsideration is accepted, the department 13
shall send notice of the request for reconsideration to the 14
transportation network company and the driver. The department shall 15
determine if there are any valid reasons to reverse or modify the 16
department's original decision to issue a citation and notice of 17
assessment or determination of compliance within 30 days of receipt 18
of such request. The department may extend this period by providing 19
advance written notice to the driver and transportation network 20
company setting forth good cause for an extension of the period, and 21
specifying the duration of the extension. After reviewing the 22
reconsideration, the department shall either: 23
(a) Notify the driver and the transportation network company that 24
the citation and notice of assessment or determination of compliance 25
is affirmed; or 26
(b) Notify the driver and the transportation network company that 27
the citation and notice of assessment or determination of compliance 28
has been reversed or modified. 29
(21) A request for reconsideration submitted to the department 30
shall stay the effectiveness of the citation and notice of assessment 31
or the determination of compliance pending the reconsideration 32
decision by the department. 33
(22)(a) Within 30 days after the date the department issues a 34
citation and notice of assessment or a determination of compliance, 35
or within 30 days after the date the department issues its decision 36
on the request for reconsideration, a person, firm, or corporation 37
aggrieved by a citation and notice of assessment or a determination 38
of compliance may file with the director a notice of appeal.39
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(b) A notice of appeal filed with the director under this section 1
shall stay the effectiveness of the citation and notice of assessment 2
or the determination of compliance pending final review of the appeal 3
by the director as provided for in chapter 34.05 RCW.4
(c) Upon receipt of a notice of appeal, the director shall assign 5
the hearing to an administrative law judge of the office of 6
administrative hearings to conduct the hearing and issue an initial 7
order. The hearing and review procedures shall be conducted in 8
accordance with chapter 34.05 RCW, and the standard of review by the 9
administrative law judge of an appealed citation and notice of 10
assessment or determination of compliance shall be de novo. Any party 11
who seeks to challenge an initial order shall file a petition for 12
administrative review with the director within 30 days after service 13
of the initial order. The director shall conduct administrative 14
review in accordance with chapter 34.05 RCW. 15
(23) If a request for reconsideration is not submitted to the 16
department within 30 days after the date of the original citation and 17
notice of assessment or determination of compliance, and a person, 18
firm, or corporation aggrieved by a citation and notice of assessment 19
or determination of compliance did not submit an appeal to the 20
director, then the citation and notice of assessment or determination 21
of compliance is final and binding, and not subject to further 22
appeal. 23
(24) The director shall issue all final orders after appeal of 24
the initial order. The final order of the director is subject to 25
judicial review in accordance with chapter 34.05 RCW.26
(25) The director's orders that are not appealed within the time 27
period specified in this section and chapter 34.05 RCW are final and 28
binding, and not subject to further appeal. 29
(26) Absent good cause, a transportation network company that 30
fails to allow adequate inspection of records in an investigation by 31
the department under this section within a reasonable time period may 32
not use such records in any appeal under such rules to challenge the 33
correctness of any determination by the department.34
Sec. 11. RCW 49.46.370 and 2025 c 236 s 2 are each amended to 35
read as follows: 36
(1) Any employer that coerces an employee in furtherance of the 37
employer committing a violation of wage payment requirements as 38
defined in chapter 49.48 RCW, condition of labor requirements as 39
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defined in chapter 49.12 RCW, or any violations under chapter 49.30 1
RCW, including rules issued by the department pursuant to chapter 2
49.30 RCW, is subject to a civil penalty under this section, in 3
addition to any other penalty that may be imposed by the department 4
against an employer for those violations. If an employer's violation 5
subjects the employer to a penalty under this section and a separate 6
penalty under RCW 49.46.100, the employer must be assessed the higher 7
amount of the two penalties. 8
(2) A worker who believes the worker was subject to coercion by 9
the worker's employer based on the worker's immigration status may 10
file a complaint with the department within 180 days of the alleged 11
coercive action. 12
(3)(a) The department must investigate a complaint of coercion by 13
an employer based on immigration status. 14
(b) Unless otherwise resolved, the department shall issue either 15
a notice of citation assessing a penalty or a closure letter no later 16
than 90 days after the date on which the department received the 17
complaint. 18
(c) The department may extend the time period by providing 19
advance written notice to the employee and the employer setting forth 20
good cause for an extension of the time period and specifying the 21
duration of the extension. 22
(d) The department shall send the citation assessing a penalty or 23
closure letter to both the employer and the employee by service of 24
process or using a method by which the mailing can be tracked or the 25
delivery can be confirmed to their last known addresses.26
(e) If the department's investigation finds that the employee's 27
allegation cannot be substantiated, the department must issue a 28
closure letter to the employee and employer detailing such finding.29
(f) If the department determines the employer violated this 30
section, the department must assess a civil penalty for each coercive 31
act as follows: 32
(i) For the first violation, a civil penalty not to exceed 33
$1,000; 34
(ii) For the second violation, a civil penalty not to exceed 35
$5,000; and 36
(iii) For any subsequent violation, a civil penalty not to exceed 37
$10,000. 38
(4) Each act of coercion against each affected employee 39
constitutes a separate violation of chapter 236, Laws of 2025.40
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(5) The department shall deposit all civil penalties paid under 1
this section in the ((supplemental pension fund established under RCW 2
51.44.033)) wage recovery account created under section 3 of this 3
act. 4
(6)(a) The penalties payable pursuant to this section shall be 5
adjusted for inflation every three years, beginning July 1, 2028, 6
based upon changes in the consumer price index during that time 7
period. 8
(b) For purposes of this subsection, "consumer price index" 9
means, for any calendar year, that year's average consumer price 10
index for the Seattle, Washington area for urban wage earners and 11
clerical workers, all items, compiled by the bureau of labor 12
statistics, United States department of labor. 13
(7) Any personal information about the employee or the employee's 14
family members, including names, in a complaint or investigation is 15
confidential and may be disclosed only to the employer. Any personal 16
information may not be disclosed to any other person or entity 17
without the written permission of the employee. 18
(8) If, during an investigation of any other complaint, the 19
department discovers information that suggests an employer has 20
coerced an employee based on immigration status, the department may 21
investigate and take appropriate enforcement action without requiring 22
the employee to file a new or separate complaint. 23
(9)(a) A person, firm, or corporation aggrieved by a citation 24
assessing a civil penalty issued by the department under this section 25
may appeal the citation to the director by filing a notice of appeal 26
with the director within 30 days of the department's issuance of the 27
citation. A citation assessing a civil penalty not appealed within 30 28
days is final and binding, and not subject to further appeal.29
(b) A notice of appeal filed with the director under this section 30
stays the effectiveness of the citation assessing a civil penalty 31
pending final review of the appeal by the director as provided for in 32
chapter 34.05 RCW. 33
(c) Upon receipt of a notice of appeal, the director shall assign 34
the hearing to an administrative law judge of the office of 35
administrative hearings to conduct the hearing and issue an initial 36
order. The hearing and review procedures must be conducted in 37
accordance with chapter 34.05 RCW, and the standard of review by the 38
administrative law judge of an appealed citation assessing a civil 39
penalty shall be de novo. Any party who seeks to challenge an initial 40
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order shall file a petition for administrative review with the 1
director within 30 days after service of the initial order. The 2
director will conduct administrative review in accordance with 3
chapter 34.05 RCW. 4
(d) The director shall issue all final orders after appeal of the 5
initial order. The final order of the director is subject to judicial 6
review in accordance with chapter 34.05 RCW. 7
(e) Orders that are not appealed within the period specified in 8
this section and chapter 34.05 RCW are final and binding, and not 9
subject to further appeal. 10
(f) An employer who fails to allow adequate inspection of records 11
in an investigation by the department under this section within a 12
reasonable time period may not use such records in any appeal under 13
such rules to challenge the correctness of any determination by the 14
department of penalties assessed. 15
(10) The collections procedures under RCW 49.48.086 apply to this 16
section. 17
(11) For the purposes of this section, "department" means the 18
department of labor and industries. 19
NEW SECTION. Sec. 12. Section 6 of this act expires July 1, 20
2030.21
NEW SECTION. Sec. 13. Section 7 of this act takes effect July 22
1, 2030.23
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