Bill > HB1184

This bill creates a narrow exemption from overtime provisions for certain nonprofits and small businesses by modifying existing state labor laws. Specifically, the bill allows nonprofit organizations and small businesses to classify certain employees as exempt from overtime pay if those employees meet specific criteria: they must be paid a predetermined salary of at least 1.5 times the minimum wage for a 40-hour workweek and meet existing duties-related exemption requirements. The bill defines qualifying nonprofits as organizations with 501(c)(3), (5), or (6) tax status that either have no more than 50 full-time equivalent employees at a single worksite, provide essential services like child care or shelter with mandated staffing ratios, or operate critical 24/7 community services programs. Small businesses are defined as independently owned entities with 50 or fewer full-time equivalent employees. The legislation acknowledges that the upcoming 2028 overtime rule, which would set the salary threshold at approximately $93,000 annually (the highest in the nation), could significantly burden smaller nonprofits and businesses, and therefore provides this targeted exemption to offer more operational flexibility.

Labor and Employment

https://app.leg.wa.gov/billsummary?BillNumber=1184&Year=2025&Initiative=false