WAGE LIEN LAW

The Washington Wage Recovery Act went into effect on January 1, 2022. In part, the Act empowers employees to secure unpaid wages by placing liens on their employer’s property.

This legal mechanism provides a proactive tool for workers to claim owed compensation.

Overview of the Wage Lien Law

Under the Wage Recovery Act, which is set forth in RCW 60.90, employees can file wage liens against several different assets of an employer in order to secure unpaid wages.

Please note that a lien is simply a claim against an employer’s assets, which an employee then uses as collateral for the repayment of a debt. Here, the debt relates to wages that the employer owes.

The specific assets of an employer that you can file a lien against include:

• Real property located in Washington owned or later acquired by the employer,
• Goods and tangible chattel paper in Washington owned or later acquired by the employer, and
• Accounts and payment intangibles owned or later acquired by the employer.

Per the Wage Lien Law, you can file a wage lien to secure payment for unpaid wages and any of the following:

• Interest,
• Any applicable statutory or liquidated damages,
• Attorney’s fees, and
• Penalties for violations of wage laws.

However, note that you cannot file a lien to secure vacation pay, severance pay, contributions to employee benefit plans, and non-statutory paid leave. These are all excluded from the law.

Who is Eligible to File a Lien?

Most current and former employees are eligible to file wage liens. Exceptions include:

• Highly compensated employees, defined as those earning over $130,000 annually or owning at least 5% of the business,
• Employees whose claims fall under construction liens as per RCW 60.04, and
• Employees of public entities, as liens cannot attach to state or public property.

How to File a Wage Lien?

If you file a wage lien on an employer’s real property, then you must:

1. File a Notice of Claim of Wage Lien with the county auditor where the property is located,
2. Include details such as the employer’s information, property description, amount claimed, and necessary acknowledgments, and
3. Mail a copy of the notice to the employer and property owner (if different) via certified mail with return receipt requested.

If you file a wage lien on an employer’s goods or personal property, then you must:

1. File a financing statement with the Washington Department of Licensing (DOL),
2. Provide required information, including the employer’s details, description of the property, and amount claimed, and
3. Mail a copy of the financing statement and notice to the employer via certified mail with return receipt requested.

Note that all filings must occur within two years from when the wages were first due.

Foreclosing a Wage Lien

To enforce a wage lien, you must initiate foreclosure proceedings and you must do so:

• Within eight months of recording the lien, or
• Within 90 days after a final judgment or administrative assessment if the wage claim was adjudicated separately.

Foreclosure actions are filed in the appropriate court based on the property type and location. Successful claimants may recover the owed wages, attorney’s fees, and costs.

Priority and Release of Liens

Wage liens have priority based on the date of recording. Further, a wage lien is extinguished (or released) if:

• No action is taken within the specified timeframes,
• The claim is dismissed with prejudice, or
• Payment is made and accepted by the employee.

Contact Nolan Lim Law Now

Wage liens can be complex, and as seen above, they require several procedural steps to successfully file. Therefore, having an experienced employment attorney in your corner to help with them can prove invaluable.

Our firm can help if your employer wrongfully withheld your wages. We can help file a wage lien on your behalf and take the necessary steps to help you get the compensation you deserve.