WA Administrative Policy ES.A.2 July 15, 2014 Active
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Definition of Wage

Summary: This short L&I administrative policy defines "wage" under RCW 49.46.010(7) as compensation owed for employment, payable in legal tender or by check convertible to cash, or by an alternative method like direct deposit only if it imposes no cost on the employee. It clarifies that items like meals and lodging are not wages, though an employer may still deduct their value from gross pay if the employee authorized the deduction in writing in advance under RCW 49.52.060. It matters to any Washington employer setting up pay methods or in-kind deductions.

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ADMINISTRATIVE POLICY

STATE OF WASHINGTON
DEPARTMENT OF LABOR AND INDUSTRIES
EMPLOYMENT STANDARDS

TITLE: DEFINITION OF WAGE
NUMBER: ES.A.2
CHAPTER: RCW 49.46.010(7)
REPLACES: ES-003
ISSUED: 1/2/2002
ISSUED: 7/15/2014

ADMINISTRATIVE POLICY DISCLAIMER

This policy is designed to provide general information in regard to the current opinions of the Department of Labor & Industries on the
subject matter covered. This policy is intended as a guide in the interpretation and application of the relevant statutes, regulations,
and policies, and may not be applicable to all situations. This policy does not replace applicable RCW or WAC standards. If additional
clarification is required, the Program Manager for Employment Standards should be consulted.
This document is effective as of the date of print and supersedes all previous interpretations and guidelines. Changes may occur
after the date of print due to subsequent legislation, administrative rule, or judicial proceedings. The user is encouraged to notify the
Program Manager to provide or receive updated information. This document will remain in effect until rescinded, modified, or
withdrawn by the Director or his or her designee.

RCW 49.46.010(7)—Wage

Wage means compensation due to an employee as a result of employment. A wage must
be paid in legal tender of the United States or by checks on banks, convertible into cash
on demand at full face value. Wages may be paid by an alternative method, i.e., direct
deposit, as long as there is no cost to the employee. When there is a fee or cost
associated with the alternative payment method, the employee must be offered a choice
of the alternative method or a payroll check.

Other items of potential value, i.e., meals and lodging, are not wages and cannot be
considered part of the wages earned. This does not mean that an employer is legally
restrained from deducting such items from the employee's gross wage. However, in order
to be valid, such deductions must meet the requirements of RCW 49.52.060 (authorized
by the employee, in writing, in advance, and accruing to the benefit of the employee).

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