The bill aims to create a narrow exemption from overtime provisions for certain nonprofit organizations and small businesses in Washington State. It recognizes the vital role these entities play in the community and the economy, particularly as they face challenges due to the state's overtime rules for exempt employees. The legislation introduces a new section that allows employees of qualifying nonprofits and small businesses, who are paid a predetermined fixed salary of at least 1.5 times the minimum wage for a 40-hour workweek and meet specific duties-related criteria, to be exempt from the standard overtime requirements.
To implement this exemption, the bill amends RCW 49.46.130, adding a new subsection that defines "nonprofit organization" and "small business" based on employee count and the nature of services provided. The definitions include organizations with no more than 50 full-time equivalent employees and those delivering essential services that require specific staffing levels. This legislative change is intended to provide these smaller entities with greater flexibility in managing their workforce while continuing to serve their communities effectively.
Statutes affected:
Original Bill: 49.46.130