Washington Paid Sick Leave: One Hour per 40 Worked From Day One, 40-Hour Carryover and 2025 Changes
Washington Paid Sick Leave: One Hour per 40 Worked From Day One, 40-Hour Carryover and 2025 Changes
Washington paid sick leave is one of the first employment rules a new business owner has to get right. The state's paid sick leave law covers most employees, applies to small businesses as well as large ones, and sets specific rules for how leave is earned, carried over, documented and used. If you are forming a company in Washington and expect to hire, this guide walks through the requirements, the few exceptions, the 2025 change that expanded permitted use, and the local ordinances that may apply on top of state law.
Informational content only. This article is not legal or tax advice. Employment rules have details that depend on your facts, and they can change. Confirm current requirements with the Washington Department of Labor & Industries (L&I) at https://lni.wa.gov/, and talk with a qualified employment attorney or CPA before you rely on this information for a specific situation.
Who Must Provide Paid Sick Leave
Employers with employees working in Washington must provide paid sick leave. There is no small-employer exemption, so a business with a single part-time worker has the same basic obligation as a company with hundreds of staff. The law has only a few exceptions. Examples include doctors, lawyers and dentists, and most salaried executive managers who supervise two or more full-time employees. Because the executive manager exception has specific conditions, check the exact definition with L&I before you classify anyone as exempt.
How Paid Sick Leave Is Earned
Employees earn one hour of paid sick leave for every 40 hours worked. Accrual starts with the first day of work, so there is no waiting period before leave is earned. Employees may use earned leave after 90 calendar days.
The math is simple, which makes it easy to check payroll records:
| Hours worked | Paid sick leave earned |
|---|---|
| 40 hours (one full-time week) | 1 hour |
| 160 hours (roughly one full-time month) | 4 hours |
| 2,080 hours (one full-time year) | 52 hours |
The 90-day rule controls when an employee can use leave, not when it is earned. A new hire still accrues hours from the first shift, but cannot use those hours until 90 calendar days after the start date. Track both dates in your system so that a request on day 91 is handled correctly.
Using Paid Sick Leave
Employees may use paid sick leave for their own mental or physical illness, injury or health condition, and for medical diagnosis, care or preventive care. They may also use it to care for a family member with the same needs. Other covered reasons include closure of the workplace or a child's school or place of care because of a public health emergency, and situations involving domestic violence, sexual assault or stalking. The 2025 change described below adds another reason. For the complete list of covered purposes, check L&I's guidance.
Leave is paid at the greater of the state minimum hourly wage or the employee's normal hourly compensation. Your payroll system needs to reflect that rate when leave is taken.
The 40-Hour Carryover Rule
Unused paid sick leave does not disappear at the end of the year. Up to 40 hours carry over to the next year. An employer is not required to carry over more than 40 hours, so an employee who finishes the year with 52 unused hours carries over 40 of them, and the employer is not required to roll the other 12 hours forward.
Spell out in your written policy how year-end balances are calculated and recorded. That determines exactly what the employee can use in January, and it avoids disputes when the new year starts.
What Employers Must Provide in Writing
Washington requires two kinds of written documentation:
- A written notice at hire. Give each new employee a written notice of their paid sick leave rights when they start. Include it in your onboarding packet and keep a record showing the date it was provided.
- A monthly statement. Each month, provide a statement showing paid sick leave hours earned, hours used and hours available.
Set these up before your first payroll run. Reconstructing leave balances after the fact is far harder than building the statement into your payroll process from the start.
The 2025 Change: Immigration Proceedings
A 2025 law, effective July 27, 2025, adds a new permitted use. Employees may use paid sick leave to prepare for or take part in an immigration proceeding. If your handbook, leave policy or request form still lists only the older permitted uses, update it. Review your written notice as well so that it matches the current list.
Local Ordinances: Seattle, Tacoma and Spokane
State law sets the baseline, and some cities add their own requirements. Three cities matter most:
- Seattle has its own Paid Sick and Safe Time ordinance. Employers working in Seattle should check with the city, because its rules can differ from the state requirements.
- Tacoma has its own paid sick leave ordinance. Check with the city before assuming the state rules control.
- Spokane had its own ordinance, but it ended December 31, 2017. The state law applies there.
City rules change, so verify the current text with each city before you finalize a policy. If your business has employees in more than one jurisdiction, write one policy that meets the strictest requirement that applies to your staff.
Common Mistakes to Avoid
- Assuming a small-business exemption. The state law has none.
- Waiting until day 90 to start accrual. Hours are earned from the first day. The 90-day rule only governs when leave can be used.
- Ignoring the carryover rule. Employers must carry over at least 40 unused hours into the next year, so year-end balances need to be tracked accurately.
- Skipping the monthly statement. Employers must provide it, and it is the easiest record to keep current.
- Using an outdated handbook. The 2025 immigration use must appear in your policy and forms.
- Overlooking city ordinances. Seattle and Tacoma rules apply in addition to, or differently from, state law.
Before Your First Hire
Paid sick leave is one item on a longer hiring checklist. The general order of steps looks like this:
- Choose your legal structure and file if required. An LLC or corporation files with the Secretary of State through the Corporations and Charities Filing System at https://ccfs.sos.wa.gov/. An LLC files a Certificate of Formation with Initial Report, and a corporation files Articles of Incorporation with Initial Report. Each has a $180 filing fee. Sole proprietors and general partnerships do not file with the Secretary of State.
- Apply for your state business license. The Department of Revenue's Business Licensing Service issues your 9-digit Unified Business Identifier (UBI). A state business license is required if you plan to hire employees within 90 days. LLCs and corporations must file with the Secretary of State before submitting the Business License Application. The processing fee is $50 to open a business, plus separate endorsement fees. Online applications generally take about 10 business days, and 2 to 3 weeks longer when city or state endorsements need approval. Apply at dor.wa.gov/open-business/apply-business-license.
- Confirm your payroll and employer registration duties. Check employer registration and payroll reporting requirements with the Employment Security Department before your first payroll.
- Prepare your leave documents. Draft your written notice at hire, your monthly statement format and your leave policy. Confirm they reflect the 2025 immigration use and any local ordinance that applies to your location.
Washington has no corporate or personal income tax on wages. Instead, most businesses owe the state business and occupation (B&O) tax, a gross receipts tax, and many cities levy their own B&O tax. Your hiring costs do not change how B&O applies to revenue, but you should confirm your obligations with the Department of Revenue and a CPA before you open for business.
Official Resources
- Washington Department of Labor & Industries (L&I): https://lni.wa.gov/
- Department of Revenue, Business Licensing: https://dor.wa.gov/open-business/apply-business-license
- Secretary of State, Corporations and Charities: https://www.sos.wa.gov/corporations-charities
- Washington Small Business Development Center: https://wsbdc.org/
The Bottom Line
Washington paid sick leave is simple to earn but easy to mishandle. Track hours from the first day, make leave usable after 90 calendar days, carry over at least 40 unused hours, put the notice and monthly statements in writing, and check Seattle or Tacoma rules if you operate there. For exemption questions or anything beyond these basics, confirm the details with L&I and consult a qualified attorney or CPA. This article is informational only and is not legal or tax advice.