Bobadilla v. First Hire Chaos
On offer letters, Washington State requirements, and the checklist nobody hands you when you make your first hire.
Hiring your first employee is one of the most meaningful milestones in a founder's life and one of the most reliably mishandled legal moments in a small business. Not because founders are careless. Because nobody hands you a checklist and the internet's version is usually incomplete, out of date, or written for a different state.
This is the Washington State version.
Before You Make the Offer
Decide whether this person is actually an employee. If you read the 1099 piece, you know the classification is determined by the reality of the relationship, not what you call it. If you're going to control how the work gets done, set the schedule, provide the tools, and direct the day-to-day, that's an employee. Make that decision before you make the offer, not after something goes wrong. The Washington State Department of Labor and Industries has a worker classification guide worth bookmarking.
Confirm the role is at-will. Washington is an at-will employment state, which means either party can end the employment relationship at any time for any reason that isn't illegal. At-will status is your default, but it can be eroded by what you say in the offer letter, the employee handbook, or even a casual conversation. Don't make promises about job security, guaranteed tenure, or termination only for cause unless you mean them and are prepared to be held to them.
Run a background check if the role warrants it. Washington has specific rules about when and how you can use criminal history in hiring decisions, including ban-the-box requirements that restrict when you can ask about criminal history in the application process. The Washington State Human Rights Commission publishes guidance on fair chance employment practices.
The Offer Letter
Write one. A verbal offer is not enough and an email with a start date and a salary is not an offer letter.
A proper offer letter covers the position title and basic description, the start date, the compensation structure including salary or hourly rate and pay frequency, whether the role is exempt or non-exempt under the Fair Labor Standards Act and Washington wage and hour law, at-will language, and any conditions of employment like background check results or reference verification.
What it should not include: promises about long-term employment, language suggesting the employee can only be terminated for cause, or any statement that could be read as creating a contract for a specific duration. Those phrases turn an at-will offer letter into something much harder to unwind.
The Washington State Department of Labor and Industries publishes the current minimum wage rates, including Seattle and other local minimums, which affect what you can legally offer.
Washington State Requirements
Washington has its own employment requirements that differ from federal standards in ways that catch small employers off guard.
Minimum wage. Washington's minimum wage is among the highest in the country and is adjusted annually. Some cities including Seattle have their own higher minimums. The Washington State Department of Labor and Industries minimum wage page has current rates by jurisdiction.
Paid sick leave. Washington requires employers to provide paid sick leave to all employees including part-time. Employees accrue one hour for every 40 hours worked from the first day of employment, though employers can configure a waiting period of up to 90 days before the employee uses it. Up to 40 hours carry over annually. The L&I paid sick leave page has employer requirements and a notice template you're required to give employees at hire.
Paid Family and Medical Leave. Washington's PFML program requires payroll deductions from both employer and employee starting with your first employee. Register with the Washington State Employment Security Department and begin withholding before you pay your first paycheck. This is the requirement that catches new employers most consistently off guard because it applies immediately and the registration has a deadline tied to when you first pay wages. The ESD PFML employer page walks through registration, reporting, and premium rates.
Workers compensation. Washington requires employers to carry workers compensation coverage through L&I for virtually all employees. This is not optional and it's not covered by your general liability insurance. The L&I workers compensation for employers page covers how to register, what rates apply, and what to do when someone gets hurt.
Pregnancy accommodation. Washington has specific requirements around pregnancy accommodation, lactation breaks, and family status protections that go beyond federal minimums. The Washington State Human Rights Commission has guidance on pregnancy and family status protections.
Job protection under PFML. As of January 2026, job protection under Washington's PFML program extends to employers with 25 or more employees after 180 days of employment.
New Hire Reporting
Washington State requires employers to report new hires to the Department of Social and Health Services within 20 days of the hire date. This applies to every new employee. The Washington New Hire Reporting portal is where you submit.
The Documents You Need
Before your first employee starts, you need at minimum: an offer letter, a W-4 for federal tax withholding, a Washington State withholding form, an I-9 to verify employment eligibility completed within three business days of the start date, direct deposit authorization, and an acknowledgment of any policies you expect the employee to follow.
The I-9 is a federal form administered by USCIS. You can find the current version and instructions on the USCIS I-9 Central page. Do not use an old version. The form is updated periodically and using an outdated version is a violation.
That last item matters more than most founders realize. If you have policies, put them in writing and have the employee acknowledge receipt. If you don't have policies yet, this is the moment to create at least a basic set covering attendance, confidentiality, acceptable use of company equipment, and the at-will nature of the employment relationship.
The Single Source of Truth
One of the most consistent sources of employment liability in small businesses is the absence of a single source of truth for what the employment relationship actually is. Policies that exist in one version but have been communicated differently in practice. Handbooks written once and never updated. Offer letters that say one thing and managers who say another.
Before your first employee starts, know where your policies live, make sure they're current, and make sure the employee receives them in writing.
Washington's required workplace posters are a good starting point. L&I maintains a current list of required workplace posters, some of which must be physically displayed in the workplace. Missing a required poster is a technical violation that's easy to avoid.
The Practical Checklist
Before the offer: Classification confirmed as employee or contractor. Background check process established if the role requires it. Compensation structure decided including exempt or non-exempt status. Minimum wage confirmed for your jurisdiction using the L&I wage rates page.
At the offer: Offer letter drafted and signed. At-will language included. No promises about duration or termination for cause. Conditions of employment documented.
Before day one: W-4 ready for completion. Washington State withholding form ready. I-9 ready to complete within three business days of start date using the current USCIS form. Policies documented and ready for employee acknowledgment. Required workplace posters ordered and displayed. Payroll system set up with correct tax withholding including PFML premiums.
Day one: I-9 section one completed by employee on or before first day. I-9 section two completed by employer within three business days. Direct deposit form completed. Policy acknowledgments signed. Paid sick leave accrual started. Employee notified of paid sick leave rights using L&I notice template. PFML employee notice provided.
Within 20 days of hire: New hire reported to DSHS through the Washington New Hire Reporting portal.
Within 30 days: ESD registration for unemployment insurance completed. L&I workers compensation registration completed. PFML withholding confirmed in payroll. Workers compensation classification confirmed and premium estimate reviewed.
Next Steps and Questions Worth Asking
Once your first hire is in place, the questions that come up next usually fall into a few categories. How do I handle performance issues and documentation? What goes in an employee handbook and do I actually need one? What are my obligations if I need to let someone go? What changes when I have five employees, or ten?
None of those are questions you need to answer on day one. They are questions worth having answered before the situation forces them. The Washington State Department of Labor and Industries Small Business Guide is a useful starting point for ongoing compliance questions.
If you want these documents drafted and ready before your first hire, the Hiring Packet is available as a flat fee project starting at $1,500. It includes an offer letter template, employment agreement, confidentiality agreement, and a Washington State compliance checklist customized to your business. Get in touch at understoryadvising.com.
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