If you are considering a move to the Olympia area or to Washington State, here are a few of the new laws effective January 1, 2023 that could impact you.
Minimum Wage Increase
Washington now has the highest state minimum wage in the United States of $15.74 an hour. In 2022, the minimum wage was $14.49 an hour. This is an increase of 9 percent or $1.25.
There are three other states with minimum wages at or over $15 an hour and those are California ($15.50), Connecticut ($15), and Massachusetts ($15). Washington D.C. has the highest minimum wage in the country at $16.10 an hour.
These wages apply to workers aged 16 and over. Under Washington State law, workers aged 14 and 15 years old can be paid 85% of the minimum wage, which is $13.38 for 2023.
Every year in Washington State, the minimum wage will be adjusted for the cost of living by Labor and Industries (L&I) based on the Consumer Price Index for Urban Wage Earners and Clerical Workers.
Overtime Exempt Salary Threshold
This new law means some employers might have to provide overtime to some employees who were previously treated as exempt. In other cases, employers may need to increase salaries for exempt employees.
To determine this, salaried employees must earn at least the minimum salary. For smaller companies with 50 or fewer employees, the salary threshold is 1.75 times the minimum wage, which equals $57,293.60 per year. For larger companies with 51 or more employees, the threshold is double the minimum wage, which equals $65,478.40 per year.
Agricultural Overtime
In 2023, workers in agriculture will need to work fewer hours to be eligible for overtime time. Workers will need to work 48 hours per week before getting overtime. In 2024, they can receive overtime pay once they reach 40 hours per week.
Rideshare Driver Rights
Rideshare drivers who work for companies like Uber and Lyft will have minimum per mile, per minute and per trip rates for drivers. For trips beginning and ending outside of Seattle, the minimums are $3.26 per trip or $0.37 per minute and $1.27 per mile, whichever is higher.
Drivers will also have the right to paid sick leave and workers’ compensation. These protections are only for drivers driving passengers; this does not apply to drivers delivering food or goods.
Bills Washington Realtors Are Supporting during the Upcoming Legislative Session
The Washington legislative session begins January 9, 2023, and Washington Realtors has several bills they will be working on to get passed.
Revising Agency Law
A big one Realtors are working on is revising agency law. If passed, this bill would make it a requirement for buyers working with licensed real estate agents to have a signed buyer agency agreement. This concept is similar to the written listing agreements agents have with sellers. This buyer agency agreement is meant to provide transparency and clarity of the legal duties of the buyer agent, how the buyer agent gets paid, and gives the agent permission from the buyer to negotiate with the seller on the commission.
Excluding Leasebacks from Washington’s Landlord-Tenant Laws
A leaseback is when the seller would remain in the home after the sale closes, and the seller becomes a tenant. This leaseback period could be for 1 day or for a couple of months yet regardless, the parties currently have to sign a lease agreement and the lease terms fall under the Landlord-Tenant Act.
This is problematic because this is not a typical landlord-tenant situation. For example, during the pandemic, new regulations were put in place regarding evictions. I would have to advise my buyers who allowed a seller to remain in the home after closing that if the seller did not move out, they, as the new owner, would have to go through a lengthy eviction process. For a home sale and leaseback situation, these regulations are overkill and do not make sense.
The other bills Washington Realtors are working on involve improving housing supply and more affordable housing options. These bills include:
Building New Condos and Reducing Developer Liability
In Washington, there is a high amount of liability on condo developers, therefore, new condos are not being built and this reduces not only the number of housing units available but also reduces the number of lower-priced housing options. Realtors are also pushing for a condominium tax incentive for certain qualified first-time homebuyers.
Accessory Dwelling Units (ADUs) in Rural Areas
Some counties in Washington are only allowing large, ATTACHED ADUs to be built instead of smaller, detached ADUs. As it stands now, currently in rural areas, homeowners are building ADUs however they cannot get them permitted with our current rules and regulations. Realtors are pushing legislators to allow rural homeowners to build and permit detached ADUs.
Middle Housing
Currently, for most residential plats, developers are only permitted to build single-family homes. This bill, if passed, would give developers the option to build neighborhood-compatible multi-family units, which would offer more units and lower-cost units for buyers.
The other bills Washington Realtors are working on are streamlining the permit process when building, lot splitting, and transit-oriented development.
Stayed tuned as the year progresses to see if these bills pass.
Realtors Do More
I am a Realtor and I belong to the national, state and county Realtor organizations. Not all licensed real estate agents are Realtors. This is an important distinction because it is the Realtor organization that advocates for buyers, sellers, and homeowners. It is the Realtor organization that is working closely with our local government to pass bills that can:
- help buyers in creating more housing and less-expensive housing options;
- help homeowners and sellers reduce costs; and
- stop bills that make buying, building, and selling properties more expensive.
In fact, it was the hard work of Realtors that lowered the excise tax that Washington sellers pay when they sell a home. Realtors were also successful in getting all real property exempted from the State’s new Capital Gains Tax. This is money that goes back into your pocket.
Other wins Realtors were successful in fighting were bills that were stopped.
Last year, Realtors lobbied against changes to the seller disclosure statement that would have put untold liability for sellers for the lifetime of the property. Another bill that was overturned was charging developers, and thus buyers, increased ecological fees, and a bill that would have allowed outside groups to overturn a comprehensive plan for a city or county based on whether or not the plan met guidelines to reduce car travel.
If you choose to work with agent for your buying or selling, work with an agent who is also a Realtor and who is involved in an organization that is working for you.