Sick Leave Payout Rule For Washington Construction Workers Takes Effect

Certain construction workers and other employees in the construction industry must be paid the entire balance of accrued and unused paid sick leave if those workers separate from employment before they reach their 90th day of employment. This requirement, effective January 1, 2024, applies regardless of whether a worker's separation is voluntary or involuntary.

This change, prompted by Senate Bill 5111, covers workers who fall under the North American Industry Classification System Code 23 (NAICS 23)—construction—even if they are not directly involved in actual construction work, such as nonexempt administrative staff. This requirement does not apply to workers who work only in residential building construction (NAICS Code 236100). However, if a nonexempt worker covered under NAICS 23 performs both residential and nonresidential work as defined by NAICS, the separation payout requirements apply. Further, this requirement also applies to workers covered by a