Skip to content

Managing Wage and Hour Risk in Construction: What Contractors Need to Know

Posted:

By Josh Brittingham

Wage and hour compliance is one of the most significant legal risks facing contractors. Every shift, break, drive between job sites, and paycheck must align not only with project demands, but also with Washington’s detailed wage and hour requirements.

In construction, small administrative mistakes can create significant exposure. A missed rest break, unpaid travel between job sites, time spent on required pre‑shift activities, or a supervisor’s instruction to work through lunch can all become points of dispute. For contractors managing multiple crews, changing job sites, and tight schedules, those risks add up quickly.

Understanding the Basics

  • Minimum Wage: In 2026, Washington’s statewide minimum wage is $17.13 per hour. Because several cities, including Seattle, SeaTac, Tukwila, Renton, Everett, Burien, and others, maintain differing minimum wages, contractors must confirm the applicable local rate before bidding or performing work.
  • Overtime: Most employees who work more than 40 hours in a 7‑day workweek must be paid overtime at a rate of at least 1.5 times their regular hourly rate.
  • Paid Sick Leave: Employees must accrue at least one hour of paid sick leave for every 40 hours worked, and employers must carry over up to 40 hours of unused paid sick leave to the next year. (Employers may allow more generous accrual or carryover, but not less.)

These rules may sound straightforward, but they become more complicated in construction, where employees may report to a shop or yard before heading to a site, move between projects during the day, or perform work before the scheduled shift begins.

Did You Know?

  • Breaks and Meal Periods: Washington requires a paid 10-minute rest period for every four hours of working time, and the rest break must be allowed no later than the end of the third working hour. Employees may not waive their right to a rest period. Employees who work more than five hours must be allowed a 30-minute meal period, generally between the second and fifth working hours. Employees may choose to waive the meal period, but the employer may not require them to work more than five consecutive hours without allowing one. (Employees must also be completely relieved of duties for the meal period to be unpaid.)
  • Travel Time Can Be Compensable: Travel time is compensable when it qualifies as “hours worked.” L&I states that time spent driving a company‑provided vehicle from the employer’s place of business to the job site is considered hours worked if the employee is on duty or otherwise restricted in a way that meets the legal test for “hours worked.” Time spent traveling from job site to job site is considered hours worked. By contrast, ordinary home‑to‑first‑site commuting is generally not compensable if the employee is not on duty and performs no work. (Employees who voluntarily report to a shop solely to catch a ride may not be considered on duty.)
  • Start-Up and End-of-Day Tasks May Count: Washington defines “hours worked” broadly enough to include travel time, training and meeting time, wait time, on‑call time, and preparatory and concluding time when the legal test is met. For contractors, that means activities such as required safety meetings, loading equipment, and some required pre‑ and post‑shift tasks may need to be counted and paid. Clarifying when these activities are “required” is critical, as voluntary or incidental tasks may be treated differently.
  • Public Works Bring Additional Risk: On public works projects, travel time may require not only compensation, but also payment at the prevailing wage rate, depending on the circumstances. L&I’s policy specifically notes that travel between two public works projects requires prevailing wage, and that loading, unloading, or transporting necessary materials or equipment can affect whether prevailing wage applies. Prevailing‑wage determinations are fact‑specific and contractors should review L&I guidance before assigning work.
  • Technical Non-Compliance Still Matters: Washington’s rules are detailed. A missed rest break, a late or interrupted meal period, or a failure to capture compensable work time can create liability even where the issue seems minor from an operations standpoint. Penalties and back‑pay obligations may apply even without employee complaints or demonstrable harm.

Construction operations move fast, but wage and hour rules do not bend to field conditions. That mismatch is where many claims begin.

Prevention Is the Best Defense

The most effective strategy is proactive compliance:

  • Audit job classifications to confirm who is exempt or non-exempt.
  • Review timekeeping practices to ensure compensable time is being captured, including qualifying travel, meetings, and required preparatory activities.
  • Train supervisors and foremen on break rules, off-the-clock work, and start and stop time expectations.
  • Review handbook policies regularly to reflect current state and local requirements.
  • Evaluate public works practices separately to confirm prevailing wage compliance.
  • Maintain accurate payroll and time records.

Contractors should also document break compliance, clarify reporting procedures for off‑the‑clock work, and ensure foremen understand that encouraging employees to skip breaks or “make up time later” is prohibited.

Why It Matters in Washington State

Washington’s wage and hour requirements are detailed and employee-protective. For contractors, the combination of mobile crews, variable schedules, multiple job sites, and public works obligations can create risk if policies, payroll practices, and field supervision are not aligned.

Regular audits and supervisor training can help contractors identify issues early, correct practices, and reduce the risk of disputes. Annual review is recommended, but a more frequent review is warranted when entering new jurisdictions or performing public works with prevailing‑wage obligations.

Frequently Asked Questions: Wage and Hour Compliance for Contractors

  • Are contractors required to provide meal and rest breaks in Washington? Yes. Employees must be allowed a paid 10-minute rest period for every four hours worked, and employees may not waive that right. Employees who work more than five hours must be allowed a 30-minute meal period, generally between the second and fifth hour. Employees may choose to waive the meal period. Rest breaks can never be waived; meal breaks can only be waived voluntarily.
  • Do I have to pay employees for travel time? Sometimes. Travel time must be paid when it qualifies as “hours worked.” L&I says driving a company vehicle from the employer’s place of business to the job site is considered hours worked if the employee is on duty or not free to use time for personal purposes. Travel from job site to job site is considered hours worked. Ordinary commuting usually is not.
  • Does attending a morning safety meeting or loading equipment count as paid time? It may. Washington’s definition of “hours worked” includes training and meeting time and preparatory and concluding time when the legal test is met. Contractors should review required pre-shift and post-shift activities carefully.
  • What if we perform public works? Public works projects should be reviewed separately. Travel time related to a public works project may require compensation and may also require payment at the prevailing wage, depending on the circumstances. Contractors should consult L&I’s prevailing wage policies for project‑specific determinations.
  • How often should we review compliance practices? At least annually, and sooner when operations expand into new jurisdictions, new project types, or public works. Washington’s wage rates and related rules can change, and local ordinances may impose additional obligations.

If you have questions regarding the information in this article, please contact Joshua D. Brittingham, Chair of Carney Badley Spellman’s Employment Law Practice Group.

 Disclaimer: This post is for general informational purposes only and does not constitute legal advice. Reading it does not create an attorney-client relationship. For advice about your specific situation, consult a qualified attorney licensed in your jurisdiction.

 

Share this post:

Construction

Sign Up to Get the Latest

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Request a Consultation