This bill aims to create a narrow exemption from overtime provisions specifically for certain nonprofit organizations and small businesses in Washington State. It recognizes the vital role these entities play in the community and the economy, while also addressing the challenges they face due to the state's overtime rules for exempt employees. The bill highlights that the minimum salary threshold for salaried exempt employees will reach approximately $93,000 by 2028, which could jeopardize the operational viability of smaller nonprofits and businesses. To mitigate this, the bill introduces a new exemption allowing these organizations to employ individuals who meet specific criteria without being subject to the standard overtime pay requirements.

The bill amends RCW 49.46.130 to include a new subsection that defines the criteria for the exemption. It specifies that employees of nonprofit organizations or 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 the duties-related criteria for exemption under existing law will not be subject to the overtime provisions. Additionally, it provides definitions for "nonprofit organization" and "small business," establishing parameters such as employee count and the nature of services provided. This legislative change aims to provide greater flexibility for these entities while ensuring they can continue to serve their communities effectively.

Statutes affected:
Original Bill: 49.46.130