January 2023

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Washington requires employers to reimburse insufficient funds fees

05/05/22

Author: ADP Admin/Wednesday, May 4, 2022/Categories: Compliance Corner , State Compliance Update, Washington

The State of Washington has enacted legislation (House Bill 1794), which requires employers to reimburse employees for certain bank fees. House Bill 1794 takes effect on June 9, 2022.

The Details:

Under the law, an employer must reimburse an employee for a fee charged by the employee’s financial institution when an employer pays an employee’s wages with an instrument returned for nonsufficient funds.

Note: To receive reimbursement, the employee must present the returned instrument to employers within 30 days of its receipt.

Next Steps:

Washington employers should review their pay policies and procedures to ensure compliance with House Bill 1794.

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