Commuter Benefits

As of January 1, 2020, Seattle employers are required to post an updated Minimum Wage notice, as well as a new Commuter Benefits Ordinance notice.

At this time, there are no changes to the city’s Paid Sick & Safe Time, Fair Chance Employment, and Wage Theft ordinances.

 

New Minimum Wage Rates for Large & Small Employers

Effective January 1, 2020:

  • Large employers (501 or more employees) must pay a minimum wage of $16.39 per hour.
  • Small employers (500 or fewer employees) who don’t contribute at least $2.25 per hour toward employees’ medical benefits and/or employees don’t earn at least $2.25 per hour in tips must pay a minimum wage of $15.75 per hour.
  • Small employers who do contribute at least $2.25 per hour toward employees’ medical benefits and/or employees do earn at least $2.25 per hour in tips must pay a minimum wage of $13.50 per hour.

Details of the Commuter Benefits Ordinance

Seattle’s new Commuter Benefits Ordinance, effective January 1, 2020, was created to encourage employees to commute to work via public transit or vanpool, in an effort to reduce traffic congestion and carbon emissions. The ordinance applies to employers with 20 or more employees worldwide who have worked an average of 10 or more hours per week in the previous month.

Under the ordinance, employers must allow employees to make a pre-tax deduction from their monthly paycheck—up to the maximum level allowed by federal tax law—to cover transit or vanpool expenses. Alternately, employers may give employees a fully or partially subsidized transit pass.

The pretax deduction benefit must be offered within 60 calendar days of an employee’s start date, and the employer must provide the deduction within 30 calendar days.

 

We Make Compliance Easy!

If you order our City/County Poster 1-Year Plan, you will automatically receive the updated Seattle poster. And because we provide free poster updates for mandatory changes, no matter how many occur during the plan year, you can always count on Poster Compliance Center to keep your business in compliance!