Client Alert: Surge in Employment Law Claims – Are You Protected?

Washington employers should take note: courts in King County are seeing a sharp rise in employment-related lawsuits, particularly class actions and wage-and-hour claims. In just the past few weeks, more than 30 employment-related lawsuits have been filed in King County Superior Court alone, many involving class actions over violations of Washington’s pay range disclosure law—an emerging trend that signals heightened scrutiny and increased legal risks for employers.

While we previously issued a client alert on Washington’s wage disclosure requirements (let us know if you need a refresher), this surge in litigation serves as a timely reminder for businesses to assess key compliance risks that could lead to costly lawsuits.

Key Areas of Legal Exposure for Employers

Pay Range Disclosure & Wage Transparency

Washington law requires job postings to include wage scales, salary ranges, and benefit descriptions. As mentioned above, recent class action lawsuits highlight an aggressive push to penalize companies that do not comply. Employers should carefully audit their job postings to ensure full compliance and mitigate litigation risks.

Misclassification of Employees

Washington’s salary threshold for exempt employees has increased, impacting overtime eligibility. Misclassifying employees as exempt from overtime can lead to significant legal exposure, including wage claims and class action lawsuits. Washington employers should review their internal classifications to ensure they comply with both the salary threshold and job duties requirements for each exempt role.

As of January 1, 2025, the new salary thresholds are:

• Small employers (1-50 employees): $1,332.80 weekly / $69,305.60 annually
• Large employers (51+ employees): $1,499.40 weekly / $77,968.80 annually

Meal & Rest Break Violations

Non-exempt employees in Washington must receive legally mandated meal and rest breaks based on their shift duration. Lawsuits over missed breaks have become increasingly common, particularly in those industries where breaks are difficult to track or manage. To reduce risk, employers should ensure that timekeeping systems accurately track breaks and that managers are properly trained to enforce compliance.

Unenforceable Non-Compete and Non-Solicitation Agreements

Washington law imposes strict limitations on non-compete agreements, especially in regard to an individual’s earnings. Employees and independent contractors earning below certain thresholds cannot be held to non-compete agreements. There are also other threshold requirements for enforceability and recent changes to the law that render certain non-solicitation agreements invalid as well. Given the risks for civil penalties and liability, businesses should consult with legal counsel before entering into any restrictive covenant agreement.

Earnings Thresholds for 2025:

• Employees: $123,394.17
• Independent contractors: $308,485.43

Discrimination/Retaliation Claims

In addition to an increase in wage/hour class actions, we are seeing an uptick in single-plaintiff discrimination and retaliation lawsuits. Even though Washington is an at-will employment state, employees can still sue for wrongful termination if they believe the decision was wrongfully motivated. Given the costs and risks associated with litigating these claims, businesses should review any layoff or termination decision carefully for potential risks before proceeding.

Reminder: I-9 Compliance – Avoid Fines and Penalties

In a similar regard, regulatory compliance should remain a critical area of concern for employers. With the potential for increased government scrutiny, we recommend auditing your I-9 forms to ensure compliance with federal employment verification laws. Errors or missing documentation can lead to steep fines and even criminal penalties.

To stay compliant, make sure that:

• All employees have properly completed I-9 forms on file.
• Identification and work authorization documents are valid and up to date.
• Any discrepancies or missing information are corrected promptly.

A proactive audit now can protect your business from significant legal and financial risks. For guidance on I-9 audits or compliance best practices, reach out to our team.

Reminder: Personal Liability May Exist for Business Owners & Managers

Unlike many corporate liability areas, individual business owners, executives, supervisors, and managers can be held personally liable for certain employment law violations including wage claims, discrimination, and retaliation lawsuits. Thus, for many small businesses, compliance is not just about protecting the company, it is also about safeguarding individuals from personal financial exposure. Owners and managers should make sure they understand their own personal risk when making important employment decisions.

Take Action Now

The above list of potential exposure areas is not exhaustive; Washington employers must keep abreast of dozens of other federal, state, and local employment laws, and the legal landscape for employment law changes often. Do not wait for an expensive lawsuit to uncover your vulnerabilities. Companies should review their employment policies routinely and make sure their operations and management teams are aware of the ever-evolving compliance requirements. Our team is also available to assist with reviewing your policies, updating your compliance measures, and providing training to keep your business protected.

For more information, please contact the CH& Employment Practice Group – Alan Schuchman, Rochelle Doyea, Kristina Maritczak, Konrad Kalpen & Emina Dacic – at employmentlawattorneys@cairncross.com.