HB 2097 — Assisting workers in recovering wages owed.

H-2870.1H-2355.1 SUBSTITUTE HOUSE BILL 2097 State of Washington 68th Legislature 2024 Regular Session By House Labor & Workplace Standards (originally sponsored by Representatives Berry, Ortiz-Self, Reed, Simmons, Ormsby, Ramel, Fosse, Goodman, Lekanoff, Doglio, Pollet, and Kloba)Kloba READPrefiled FIRST01/03/24. TIME 01/26/24.

Read first time 01/08/24.

Referred to Committee on Labor & Workplace Standards.

addingamending aRCW new49.48.040; section to chapter 49.48 RCW;

andadding providingnew ansections expirationto date.chapter 49.48 RCW;

and providing expiration dates.

(1) The department of labor and industries shall convene a work group to develop and recommend strategies that help employeesworkers who are owed wages recover those wages and be made whole as quickly and as fully as possible when the employees'workers' employers violate provisions under this chapter or the minimum wage act.

(2) The work group shall identify options to enhance the department of labor and industries' ability to provide swift relief to employees.workers.

(a) AThe wage recovery pilot program created in section 2 of this act or a similar mechanism to a wage recovery fund;

and (b) Procedures and mechanisms used in other states that ensure full and timely recovery for employeesworkers and that deter future violations.

(3)(a)p. Recommendations from the work group must be made by consensus, if possible.

If1 consensusHB cannot2097 (3)(a) Recommendations from the work group must be reached,made p.by consensus, if possible.

1If SHBconsensus 2097cannot be reached, recommendations of the work group must reflect the view of the majority of the members.

(a) Two representatives from employeeworker advocacy organizations;

(b) Two representatives from employer and business advocacy organizations,organizations; with one of the members representing small employers;

(6) The work group must submit a report with recommendations to the appropriate committees of the legislature by December 1, 2025.2028.

(7) This section expires December 1, 2026.2029.

NEW SECTION.

Sec.

2.

A new section is added to chapter 49.48 RCW to read as follows:

(1)(a) The wage recovery fund is created in the custody of the state treasurer as part of the wage recovery pilot program.

The department of labor and industries shall administer the wage recovery fund.

All receipts from any appropriations or other sources received by the department for the purpose of the wage recovery fund shall be deposited into the fund.

No appropriation is required to permit expenditures from the wage recovery fund, but the fund is subject to allotment procedures under chapter 43.88 RCW.

(b) Only the director of labor and industries or the director's designee may authorize expenditures from the wage recovery fund in accordance with this section.

Expenditures from the wage recovery fund may be used solely for making disbursements to workers eligible for wage recovery under this section.

p.

2 HB 2097 (2) A three-year wage recovery pilot program, administered by the department, is created for the purpose of providing relief to workers who are owed wages and whose employers have committed wage violations under chapter 49.46 RCW or this chapter.

(3) Applications for wage recovery disbursements must be submitted to the department according to the department's rules.

Wage recovery disbursements must be approved by the director of labor and industries prior to any expenditure.

(4) The department may disburse wage recovery funds to eligible workers under the pilot program in accordance with rules adopted under this section when:

(a) The worker was earning an hourly wage rate of not more than one and one-half times the minimum hourly wage rate required in the jurisdiction where the worker was employed;

and (b) The department has determined that the employer owes the applicant wages and has committed a violation of a wage payment requirement under this chapter or a violation under chapter 49.46 RCW.

(5) The department shall adopt rules to implement this section.

At a minimum, the rules must include provisions for the following:

(a) An application process for eligible workers to apply for wage recovery disbursements;

(b) Procedures for determining how to prioritize applications and how to prioritize which workers receive disbursements;

and (c) Procedures for workers to assign their wage claims or wage complaints to the department as part of the process for receiving wage recovery disbursements.

(6) This section does not create any right or entitlement.