Employer of Record · Washington

Employer of Record in Washington.
L&I, PFML & WA Cares — Handled.

Washington has no state income tax, but it runs its own workers' compensation system and a first-of-its-kind long-term care fund. From L&I premiums to Paid Family & Medical Leave, WorkGenius becomes your legal employer — keeping you fully compliant across Seattle, Bellevue, and beyond.

$16.28/hr
State minimum wage
$19.97/hr
Seattle minimum wage (500+ employees)
0.8%
WA Cares Fund premium rate

Washington by the Numbers

State minimum wage
$16.28/hr
Seattle: $19.97/hr (500+ employees), $17.25/hr (small employers)
Workers' comp
State fund only
L&I monopoly — private workers' comp insurance not permitted
Paid sick leave
1 hr per 40 hrs worked
No annual cap on accrual; carryover required
Final paycheck
End of next pay period
Must be mailed or direct deposited by next regular payday
Non-competes
$100K+ threshold
Unenforceable below $100K annual comp for employees
WA Cares Fund
0.58% of wages
Employee-paid long-term care premium; exemptions available
The Defining Obligation

Washington's State-Run Workers' Compensation (L&I)

Unlike 47 other states where employers can buy private workers' comp insurance, Washington requires all employers to participate in the state-run Labor & Industries (L&I) fund. Rates vary by job classification — and getting the classification wrong means underpayment penalties or overpayment you can't easily recover.

Get AB5-Compliant Today
The ABC Test
  • All Washington employees must be covered by L&I — no private insurance alternative
  • Premium rates are set by job risk classification (e.g., office workers vs. construction)
  • Employers must register with L&I before the first employee's first day of work
  • Quarterly reports and premium payments required — late filing triggers penalties
  • Workers injured on the job file claims directly with L&I, not a private insurer
  • WorkGenius registers, classifies, and remits L&I premiums on your behalf
Washington Coverage

What WorkGenius Handles for Washington

Washington's unique state programs — L&I, PFML, and WA Cares — require separate registrations, filings, and remittances. We manage all of them.

L&I Workers' Comp

Registration, job classification, quarterly premium calculations, and remittances to Washington L&I — handled for every worker.

Paid Family & Medical Leave

Employer and employee PFML contributions calculated, withheld, and remitted each payroll cycle. Leave claims supported through the state portal.

WA Cares Fund

Washington's long-term care premium deducted correctly per payroll. Exemption documentation tracked for eligible opt-out employees.

Seattle Wage Compliance

Seattle's tiered minimum wage (based on employer size) applied automatically. Accurate overtime for all hourly workers.

Paid Sick Leave (Initiative 1433)

Accrual at 1 hour per 40 worked, carryover tracking, and correct payout at termination where applicable — all automated.

Washington-Compliant Agreements

Employment contracts that respect the non-compete earnings threshold and reflect Washington's broad anti-retaliation provisions.

Washington Compliance Dashboard
3 workers · All compliant
Live
L&I & WA Cares Compliance Check
Passed
State L&I workers' comp registered & premiums current
PFML contributions calculated for employer + employee
WA Cares Fund deduction applied where required
This Week's Payroll
$16.28
Base/hr
$24.42
OT rate (1.5×)
Auto
Calculated
Weekly invoice sent
Every Friday · All-in rate
Sent
Technology-Powered

How WorkGenius Handles Washington EOR

Washington has no state income tax — but it layers on unique obligations most EOR providers miss: a state-monopoly workers' comp system, mandatory PFML contributions, and the WA Cares long-term care fund. WorkGenius handles all three automatically.

  • L&I Workers' Comp — Automatically
    Washington's L&I system is state-run — no private insurance allowed. WorkGenius registers, calculates, and remits all L&I premiums based on the correct risk classification for each worker's job type.
  • Paid Family & Medical Leave (PFML)
    Both employer and employee contribute to Washington PFML. WorkGenius withholds the correct employee share and remits the full contribution — including the employer portion — every payroll cycle.
  • WA Cares Fund Managed
    Washington's long-term care insurance program is the first of its kind in the US. WorkGenius applies the correct deduction rate and tracks exemptions for workers who have opted out with private coverage.
  • One Weekly Invoice
    A single, transparent weekly invoice covering payroll, L&I premiums, PFML, WA Cares, and benefits. No surprises, no hidden fees.

Other Key Washington Compliance Areas

Beyond L&I, Washington stacks several state-specific programs that require careful administration.

Paid Family & Medical Leave (PFML)

Up to 18 wks total

Washington's PFML provides up to 12 weeks of paid leave for qualifying family or medical reasons. Both employers (with 50+ employees) and employees contribute, with premiums recalculated each year.

WA Cares Fund

0.58% of wages

The first state-run long-term care program in the US. Employees pay 0.58% of gross wages. Workers who purchased qualifying private long-term care insurance before November 2021 may apply for an exemption.

Pay Transparency (SB 5761)

15+ employees

Washington requires employers with 15+ employees to include salary ranges in job postings. Employers must also disclose wage ranges to existing employees who apply for internal transfers.

Non-Compete Restrictions

$100K+ threshold

Non-compete agreements are unenforceable for employees earning less than $100,000/year (adjusted annually for inflation) or independent contractors earning less than $250,000. Agreements must be disclosed at offer stage.

Simple Process

How It Works in Washington

From first conversation to fully compliant employment — typically within days.

1

Tell Us What You Need

Workers, roles, locations, and start dates. We tailor the setup to your needs.

2

We Assess & Classify

Our AI runs every worker through California's ABC test. We prepare compliant contracts and payroll setup.

3

Workers Are Employed

Onboarded with California-compliant contracts, benefits enrolled, payroll running from day one.

4

We Handle Ongoing

Payroll runs with daily OT. Taxes filed. Compliance monitored. One weekly invoice.

Washington EOR: Common Questions

Why can't I just get private workers' comp insurance for my Washington employees?

Washington is one of four monopoly states — only the state-run L&I fund is permitted. Employers who fail to register and pay premiums face fines, stop-work orders, and personal liability for any worker injuries. WorkGenius registers with L&I and remits all premiums on your behalf before your first Washington employee starts.

How does Washington PFML work for my employees?

Washington's Paid Family & Medical Leave provides up to 12 weeks of paid leave (18 for certain pregnancy-related conditions). Premiums are shared: employees contribute roughly 72% of the total premium; employers with 50+ employees contribute ~28%. WorkGenius manages withholding, employer contributions, and quarterly reporting to the Employment Security Department.

Do I have to withhold the WA Cares Fund premium?

Yes, unless a worker has an approved exemption from the state. The premium is 0.58% of gross wages, entirely employee-paid. Workers who held qualifying private long-term care insurance before November 2021 may have received an exemption letter from the state. WorkGenius tracks exemption status for each worker and applies deductions accordingly.

Does Washington have a state income tax I need to withhold?

No — Washington has no personal income tax, which simplifies some payroll administration. However, the state offsets this with L&I premiums, PFML contributions, and the WA Cares Fund, all of which require careful calculation. WorkGenius handles all state-specific withholdings and contributions accurately.

We're hiring someone in Seattle — does a higher minimum wage apply?

Yes. Seattle has its own minimum wage ordinance that's higher than the state rate. For 2024, large employers (500+ globally) must pay at least $19.97/hr; smaller employers pay $17.25/hr with qualifying medical benefits or $18.69/hr without. WorkGenius applies the correct Seattle rate based on your company size automatically.

Employer of Record

Ready to Employ in Washington Compliantly?

WorkGenius handles AB5 classification, California payroll, benefits, and every other compliance requirement so you don't have to. Get started today.

No commitment required. Free consultation included.