WA Administrative Policy ES.A.5 April 6, 2023 Active
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Waiving of Rights Under Minimum Wage Act Prohibited and More Favorable Laws Allowed

Summary: This L&I administrative policy explains that employees cannot agree, individually or collectively, to be paid less than the Minimum Wage Act requires — such agreements are unlawful and provide no defense against a wage claim. It also clarifies which wage deductions remain permissible (state/federal-required deductions, medical insurance, and voluntary deductions like loan repayments), and confirms that when a more favorable federal, state, or local law applies, that standard governs instead. It matters to employers drafting pay agreements or deduction policies and to workers assessing whether a wage arrangement is lawful.
About this page: The full text below is the official document from Washington State Department of Labor & Industries (L&I). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.
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ADMINISTRATIVE POLICY

                                                                           STATE OF WASHINGTON
                                                             DEPARTMENT OF LABOR AND INDUSTRIES
                                                                         EMPLOYMENT STANDARDS

TITLE: WAIVING OF RIGHTS NUMBER: ES.A.5
UNDER MINIMUM WAGE ACT
PROHIBITED AND
MORE FAVORABLE LAWS ALLOWED

CHAPTER: RCW 49.46.090
RCW 49.46.120 REPLACES: ES-010
ES.A.7
ISSUED: 1/2/2002
REVISED: 4/6/2023
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.

This policy provides information about the Minimum Wage Act's minimum standards relating to
wages, hours, paid sick leave, or other working conditions. Employees cannot waive their rights
under the Minimum Wage Act. If more favorable laws or standards exist, employees must
receive the more favorable rights granted.

  1. An Employer Must Pay Amounts Due Under the Minimum Wage Act, Regardless of Any
    Employee Agreements to Work for Less.

RCW 49.46.020 is a minimum guarantee to all employees covered by the Washington Minimum
Wage Act (MWA) for each hour of employment, and RCW 49.46.130 is the guarantee of overtime
pay equal to one and one-half the regular rate of pay for hours worked in excess of 40 per week.

RCW 49.46.090 prohibits agreements entered into, individually or collectively, between an
employee and an employer that result in the employee being paid less than the amounts due
under the Minimum Wage Act. This includes minimum wages, overtime wages, paid sick leave,
and other earnings protected under the Minimum Wage Act, such as gratuities, tips, and service
charges that are due to employees. Such agreements do not relieve an employer of their legal
responsibilities under the law. Such agreements are considered unlawful and cannot be used as
a defense to legal action to recover unpaid wages.

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  1. An Employer May Deduct Certain Amounts from Wages.

Deductions from wages may be allowed in certain situations under RCW 49.48.010, RCW
49.52.060, WAC 296-126-025, WAC 296-126-028, and WAC 296-128-030. Deductions that meet
the criteria of RCW 49.52.060 and WAC 296-126-028, also may allow deductions that reduce net
pay below the minimum hourly rate, such as when the deduction is required by state or federal
law, for medical insurance, or for voluntary deductions accruing to the benefit of the employee.
Examples of voluntary deductions include employee agreement for repayment of loans, personal
purchases, and savings accounts or bonds. Because the employee has agreed to use his or her
paycheck as a mechanism for spending money that would have been spent regardless, there is
no violation even if the employee's net pay is less than the minimum wage. Regardless of
deductions, an employee's gross pay must always be at least the minimum rate per hour.

  1. More Favorable Federal, State, or Local Laws Apply.

If there are differences between the Minimum Wage Act and any federal, state, or local laws or
rules governing labor standards, the standard more favorable or more protective to the employee
is applied.

Individuals with questions regarding whether federal labor law provides more favorable standards
should obtain clarification of the Fair Labor Standards Act (FLSA) from the United States
Department of Labor. Individuals with questions regarding the interpretation of local labor laws
should obtain clarification from the locality where the work is performed.

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