Creating a narrow exemption from overtime provisions for certain nonprofits and small businesses.

HB 1184 creates a new exemption from Washington state's overtime rules for certain nonprofit organizations and small businesses. It allows these entities to classify some salaried employees as exempt if they earn at least 1.5 times the state minimum wage for a 40-hour workweek ($30.90/hour in 2025, based on $15.45/hour minimum wage) and meet specific duties criteria. The exemption specifically covers nonprofits with 50 or fewer full-time equivalent employees (or those providing essential services like shelters requiring 24/7 staffing) and small businesses with 50 or fewer employees. This change aims to address concerns that the upcoming 2028 overtime salary threshold ($93,000 annually) would force these organizations to reclassify staff or increase pay, potentially jeopardizing their ability to serve communities. The bill does not alter overtime rules for most other employers or industries.