2024 Legal Updates for WA, OR & CA
Blog By: Attorney Lindy Laurence
New year, new laws! From boosts to the minimum wage, more paid sick leave, and greater freedom to establish a home child care business, there are a flurry of new laws going into effect in 2024 that will affect your business.
Washington Legal Updates
Washington passed numerous laws in 2023 which take effect in 2024. Here's a summary of those most likely to affect businesses and nonprofits:
Minimum Wage: As of January 1, Washington state will have the nation’s highest minimum wage when the current rate of $15.74 jumps by 3.4% to $16.28 per hour. That’s more than double the federal minimum wage of $7.25, which has remained unchanged since July 2009. The state’s new rate will be even higher in the cities of Seattle ($18.69) and SeaTac ($19.06). Most agriculture and non-ag jobs qualify for minimum wage. A lower rate is allowed for working minors ages 14-15, who must receive at least 85% of minimum wage, and certain on-the-job, student, disabled, and apprentice workers.
Employer Cannabis Testing: Under federal and state laws, cannabis remains a controlled substance subject to criminal penalties even though Washington has allowed medicinal use for qualifying patients since 1998 and legal recreational use by adults since 2012. Those contradictions are also compounded by state and federal laws which allow employers in Washington to establish drug-free workplace policies, including drug and alcohol testing. With Senate Bill 5123, employers are now prohibited from discriminating against a prospective employee based on that person’s use of cannabis off the job and away from the workplace. Nor can employers require drug screening tests which identify “non-psychoactive cannabis metabolites” in a person. However, the new legislation does not prohibit an employer from: (a) making hiring decisions based on drug screening for substances other than cannabis or marijuana; (b) requiring testing of an employee following an accident on suspicion of being under the influence of alcohol, controlled substances, or medications; or (c) the right to maintain a workplace free of drugs and alcohol, or any other obligation required by federal law or regulation. Nor does the bill apply to applicants seeking employment with law enforcement agencies, jails and corrections facilities, fire departments, emergency medical responders, 911 dispatchers, positions in the airline or aerospace industries, or other “safety-sensitive” jobs identified by employers for which impairment poses “a substantial risk of death.”
Paid Sick Leave for Construction Workers: Senate Bill 5111 will require employers to provide one hour of paid sick leave for every 40 hours worked by an employee after 90 days. Up to 40 hours of unused paid sick leave can carry over to the following year. If there is a separation, an employee rehired within 12 months by the same employer is entitled to have previously accrued sick leave reinstated. Otherwise, the employer is not required to reimburse a worker who resigns, retires, or is terminated for unused paid sick leave. The state’s paid sick leave requirements do not apply to union construction workers covered by collective bargaining agreements which already contain or specifically waive such provisions.
Other new laws… Uniform Commercial Code (SB 5077), enhanced voting rights (HB 1048), fire sprinkler contractors (SB 5425), paid family or medical leave data (SB 5586), newspaper tax breaks (SB 5199), pet insurance (SB 5319), commercial driver licenses (HB 1058), nurse staffing standards (SB 5236), eliminating college-in-the-high-school fees (SB 5048), tax credits for working families (HB 1477), providing post-conviction access to legal counsel (SB 5046), and collective bargaining for management employees in Washington state government (SB 1122).
Oregon Legal Updates
Oregon passed numerous laws in 2023 which take effect in 2024, including many new laws that address the drug crisis, homelessness, and working families. Here's a summary of those most likely to affect businesses and nonprofits:
Environmental Protection: Banning Use of Hazardous Polystyrene Food Containers (Senate Bill 543) prohibits the use of polystyrene foam containers and perfluoroalkyl substances (PFAS) in sales of prepared food. The ban was introduced in response to the significant negative impact that polystyrene has on the environment.
Greater Retail Theft Protections: SB 340: Stricter Penalties for Organized Retail Theft Imposes harsher penalties for organized retail theft, with a standard two-year jail term for those with previous similar convictions.
Family Child Care: Senate Bill 599 requires landlords to allow tenants to use their rental homes or apartments as family child care homes as long as they are certified, registered and the tenant has notified the landlord. Landlords may require a tenant to pay in advance for any modifications necessary and require tenants to have parents sign a document relieving the landlord from liability. Landlords also may require the tenant to carry and maintain a reasonable liability policy that protects the landlord as an “additional insured.” House Bill 2468 is another bill establishing rules and laws to allow tenants to use their rental units for child care. The law directs the Early Learning Council to adopt “reasonable requirements” for landlords of tenants operating family child care homes in their dwellings.
Child Tax Credit: House Bill 3235 pioneers Oregon’s first fully refundable child tax credit, benefiting low-income families starting in tax year 2023. Eligibility for families earning $30,000 or less, with a potential state tax credit of up to $1,000 per child aged 5 or younger.
Inclusive Domestic Partnerships: House Bill 2032 removes the same-sex requirement from Oregon’s registered domestic partnerships law. All Oregon adult couples are now able to register as legal domestic partners, regardless of gender.
Minimum Wage Changes: Oregon’s minimum wage rate for 2024 hasn’t been set yet, and will be based on the Consumer Price Index. Any changes will go into effect July 1, 2024. We’ll bring you more updates as they happen.
Consumer Privacy: Finally, the Oregon Consumer Data Privacy Act (OCDPA) law passed June 29, 2021, but will go into effect on July 1, 2024, so business owners will need to ensure compliance with these new requirements by then.
California Legal Updates
California passed numerous laws in 2023 which take effect in 2024, including many new laws that address the wages of minimum wage workers and especially, fast food workers. Other laws will have a broader impact with paid sick leave and family leaves, possibly improving work-life balance. Here's a summary of the laws most likely to affect businesses and nonprofits:
Cannabis: Workers in California who use marijuana have additional protections starting in 2024. Cannabis use while on the clock is still restricted, but it's now illegal for an employer to not hire or terminate an employee for using cannabis products outside of work.
Fast Food Workers: Starting in April 2024, fast-food workers who earn minimum wage in California will see their hourly wages jump from just over $16 an hour to $20 an hour. The minimum wage increase will impact approximately 500,000 fast-food workers statewide. The pay increase is only a portion of the bill, which will also hold corporate fast-food chains responsible for working conditions at restaurants owned by individual franchisees.
Minimum Wage: California’s minimum wage will increase to $16 per hour for all employers.
Noncompete Agreements: Employers can no longer include post-employment noncompete clauses in contracts or make employees enter one. Employers must notify current and some former employees with a written notice any post-employment noncompete clause is void by Valentine’s Day. See the text of the bill here.
Gas-Powered Outdoor Equipment: Under AB 1346, retailers are prohibited from selling gas-powered outdoor equipment. That includes certain chainsaws, hedge trimmers and edgers, lawn mowers and leaf blowers. It does not include air compressors, portable generators and pressure washers.
Paid Sick Leave: Workers in California will receive an additional two days of paid sick days for the year. Senate Bill 616 increases the number of days employers are required to pay eligible employees from three days of paid sick leave per year to five days. The new law also expands the definition of sick leave to include caring for a sick family member. The new law also includes paid time off for employees who are victims of domestic violence, sexual assaults and stalking.
Reproductive Loss Leave: Under SB 848, private employers with five or more employees and all public employers have to provide up to five days of reproductive loss leave for qualifying events including: failed adoption, failed surrogacy, miscarriage, stillbirth or unsuccessful assisted reproduction. The five days don’t have to be consecutive. The full text of the law is here.
Gender Neutral Toy Selections: Under AB 1084, major retailers or any company with 500 or more employees, would be required to have a gender-neutral display for children’s toys in their store and have it clearly labeled as such. The law applies to retailers operating inside the state of California. Companies who fail to maintain a gender-neutral toy aisle face a civil penalty of $250 for the first time and $500 for each subsequent penalty.
Hate Symbols: Criminal penalties for three hate symbols are now equalized under AB 2282: Nazi swastika, noose, and desecrated crosses. It also increases the locations where they are banned to include K-12 schools, colleges, cemeteries, places of worship, places of employment, private property, public parks, public spaces, and public facilities.
Low-Income Housing: Religious institutions and nonprofit colleges in California will be allowed to turn their parking lots and other properties into low-income housing under a new law aimed at combating the ongoing homeless crisis. The law rezones land owned by nonprofit colleges and religious institutions, such as churches, mosques, and synagogues, to allow for affordable housing. Starting in 2024, they can bypass most local permitting and environmental review rules that can be costly and lengthy. Learn more about the law here.