Washington Supreme Court Decision May Spur Joint Employer Class Actions

In a matter of first impression, the Washington Supreme Court has held that the “joint employer doctrine” is a viable theory under Washington’s Minimum Wage Act (WMWA), and adopted the Fair Labor Standards Act’s economic reality test to determine whether one or more entities are joint employers for purposes of minimum wage and/or overtime liability. This ruling extends the joint employer doctrine to Washington opt-out class actions under the WMWA, and potentially subjects entities to broader liability for the pay practices of their subcontractors.