FEDERAL
Federal Overtime Exemption Rule Overturned
A federal court blocked the Department of Labor’s planned increase to the overtime exemption salary threshold on November 15, 2024. The increase to $58,656 per year will not take effect in January 2025. The federal threshold remains $684 per week, which is $35,568 per year, and the duties test is unchanged. Employers that prepared for higher salary thresholds can pause those plans, but state thresholds are still important to keep in mind. For example, Washington’s exempt salary threshold is scheduled to rise to $80,168 in 2026.
ACTION: Employers should confirm that current exempt classifications align with the existing federal standard. Multi‑state employers should review state specific thresholds and update compensation planning where required. Employers that had announced possible reclassification or salary adjustments may also need to provide follow-up communication to maintain clarity for employees.
EEOC Penalty Increase for Notice Posting
Beginning September 30, 2025, the EEOC increased the civil penalty for failing to display required anti-discrimination notices. The new penalty is $698 per violation. This applies to all employers covered by Title VII, ADA, GINA and PWFA. Employers must ensure the latest “Know Your Rights” poster is visible in every work location, including remote and satellite offices.
ACTION: Employers should review their federal posting requirements and verify that the correct poster versions are displayed. This includes providing digital or intranet postings for remote workers. It is also a good time to check state and local posting requirements so that all notices remain current and compliant. A more in-depth look is available here.
WASHINGTON
Updates to Washington Paid Family and Medical Leave (PFML)
Washington House Bill 1213 creates several updates to PFML beginning January 1, 2026. Most employees who have worked for the same employer for 180 days will be entitled to job protection during PFML leave. The requirement phases in based on employer size:
• 25 or more employees: January 2, 2026
• 15 or more employees: January 1, 2027
• 8 or more employees: January 1, 2028
Previously, job protection applied only to employers with 50 or more employees.The law also modifies how PFML and FMLA interact. PFML and FMLA will only run concurrently if the employee chooses to use them at the same time. Employers may count FMLA leave toward PFML job protected leave if they provide required written notices within specific timeframes. The law also reduces the minimum leave increment from 8 hours to 4 hours and adds new reinstatement notice requirements. Employers must also maintain health insurance during any period of PFML leave that qualifies for job protection. The Employment Security Department will begin conducting audits to ensure compliance.
ACTION: Employers should begin updating PFML policies, FMLA procedures, written notices, and leave tracking systems. It is especially important to prepare for the new notice timelines and reduced leave increments. Employers should also confirm that health insurance continuation processes support job protected PFML leave. Early preparation will help ensure compliance as the phased implementation begins. Visit our blog post for additional information regarding these PFML updates.
If you have questions or want to discuss further, book some time to chat with us. We are always happy to talk through next steps.
