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.
Facts reviewed against primary sources in September 2026
| Requirement | Washington | Detail |
|---|---|---|
| State minimum wage | $17.13/hr | Seattle is $21.30/hr for 2026, a single rate - the large and small employer tiers were eliminated |
| 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 | Next regular payday | Must be mailed or direct deposited by next regular payday |
| Non-competes | $126,858.83+ threshold | Unenforceable below $126,858.83 for employees and $317,147.08 for independent contractors (2026 figures, adjusted annually by L&I under RCW 49.62.040) |
| WA Cares Fund | 0.58% of wages | Employee-paid long-term care premium; exemptions available |
Unlike the 46 other states where employers can buy private workers' comp insurance - Washington is one of four monopolistic states, with North Dakota, Ohio and Wyoming - 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 Washington-Compliant TodayWashington's unique state programs - L&I, PFML, and WA Cares - require separate registrations, filings, and remittances. We manage all of them.
Registration, job classification, quarterly premium calculations, and remittances to Washington L&I - handled for every worker.
Employer and employee PFML contributions calculated, withheld, and remitted each payroll cycle. Leave claims supported through the state portal.
Washington's long-term care premium deducted correctly per payroll. Exemption documentation tracked for eligible opt-out employees.
Seattle's tiered minimum wage (based on employer size) applied automatically. Accurate overtime for all hourly workers.
Accrual at 1 hour per 40 worked, carryover tracking, and correct payout at termination where applicable - all automated.
Employment contracts that respect the non-compete earnings threshold and reflect Washington's broad anti-retaliation provisions.
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.
Beyond L&I, Washington stacks several state-specific programs that require careful administration.
Washington enacted a state layoff-notice law in 2025. ESSB 5525, Chapter 277, Laws of 2025, took effect on July 27, 2025 and requires employers with 50 or more full-time employees to give advance notice of a business closing or mass layoff, to the affected employees and to the Employment Security Department. The 50-employee threshold sits below federal WARN's 100, so a mid-sized Washington employer can be covered by the state law alone. WorkGenius checks it before any Washington workforce reduction.
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.
The first state-run long-term care program in the US. Employees pay 0.58% of gross wages. The window to apply for the private long-term-care-insurance exemption has closed, so it is no longer available to new hires - workers who purchased qualifying private long-term care insurance before November 2021 may apply for an exemption.
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 agreements are unenforceable for employees earning less than $126,858.83 a year or independent contractors earning less than $317,147.08. RCW 49.62.040 requires L&I to adjust both figures for inflation every year, so they move each January - the $100,000 and $250,000 often quoted are the original 2020 statutory figures. Agreements must be disclosed at offer stage.
From first conversation to fully compliant employment - typically within days.
Workers, roles, locations, and start dates. We tailor the setup to your needs.
Our AI runs every worker through Washington's classification and compliance rules. We prepare compliant contracts and payroll setup.
Onboarded with Washington-compliant contracts, benefits enrolled, payroll running from day one.
Payroll runs on Washington rules. Taxes filed. Compliance monitored. One weekly invoice.
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.
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.
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.
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.
Yes. Seattle has its own minimum wage ordinance that's higher than the state rate, and the tier structure many employers remember no longer exists. For 2026 Seattle is a single rate of $21.30/hr for every employer, regardless of headcount or medical benefits. WorkGenius applies the correct Seattle rate automatically.
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WorkGenius handles worker classification, Washington payroll, benefits, and every other compliance requirement so you don't have to. Get started today.
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