Fall 2007 SBH Quarterly Newsletter
PDF FormatEmployment Law Update: Washington Courts
Interstate truck drivers subject to state minimum wage even if work hours accumulate outside of state.
The Washington appellate court held in Bostain v. Food Experience, 159 Wash 2d 700 (2007) that a truck driver remains subject to the state Minimum Wage Act while working in other states. Regardless of where the hours were worked, he was entitled to overtime rate for all hours worked over forty in a workweek. The state court of appeals initially held the driver was not due overtime, relying on RW 49.46.005. That statute specifies the legislator's intent to establish minimum wages and overtime rules for employment within the state. The Supreme Court reversed, rejecting the interpretation that the general policy statute somehow limited overtime depending on where Washington employees work. The Supreme Court found Bostain a Washington employee, hired in Washington, holding a Washington license, and dispatched from central operations in Washington. The court held that all hours worked, in whatever state, had to be considered for calculations of overtime pay.
Care Home Managers exempt from overtime under Administrative exemption.
In a recent case, Schryvers v. Coulee Community Hospital, 158 P3d 113 (Wash App Div 3 2007), the Washington Court of Appeals held that a husband and wife who managed a hospital-owned adult residential care home were exempt from overtime requirements. The couple lived in a wing of the home and provided meals, personal assistance, cleaning, laundry and medication reminders for elderly or partially incapacitated adults. They argued they were not exempt from overtime laws because they lacked discretion in their jobs. Nurses outlined care and the hospital provided all supplies for the care home. Although recognizing this limit to discretion, the court noted the couple had almost complete control over day-to-day operations at the care home. At the operational level, the couple acted almost entirely without oversight, exercising significant judgment and discretion. This qualified under the administrative exemption from overtime laws.
Alert! New Law Regarding Credit Checks for Washington Employers.
As of July 1, 2007, a new law (SB 5827) went into effect that impacts Washington employers' ability to run credit checks on applicants and employees.
SB 5827 creates two requirements: notice and a valid reason. A credit check can be utilized only when "substantially job related" or required by law. If this requirement is met, a credit check may be utilized, but the employee must be notified. The applicant/employee must be notified in advance that a credit check will be conducted and may be considered for employment purposes. This notice may occur in application materials, but SBH recommends obtaining signed consent. Then, if the credit information will be used for adverse action, the employer must further provide the employee the name, address, and number of the credit reporting agency, a description of consumer rights as applicable to employment, and a reasonable opportunity to respond to any part of the report the employee disputes.
Credit checks have become an increasingly utilized tool for employers. If you or your vendors conduct credit checks on your applicants or employees, please review your procedures to ensure compliance with the new law. If you have any questions, contact your SBH attorney or your Washington legal counsel.
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