Initiative 1433 would increase the hourly minimum wage incrementally over four years and require employers to provide paid sick leave. The measure would also adopt related laws about earning and using paid sick leave.

Initiative 1433 would increase the hourly minimum wage for employees who are at least 18 years old to $11.00 on January 1, 2017; $11.50 on January 1, 2018; $12.00 on January 1, 2019; and $13.50 on January 1, 2020. The Department of Labor and Industries must still set the minimum wage for employees under 18 years old.

Beginning on January 1, 2021, the minimum wage rate would again be adjusted each year according to the rate of inflation. If a local law requires a higher minimum wage within a city, the local minimum wage would apply. Beginning on January 1, 2018, employers would be required to provide paid sick leave to employees covered by the Minimum Wage Act. Employers would be required to pay sick leave at the employee's pay rate or at the new minimum wage, whichever is higher. An employee would get at least one hour of paid sick leave for every 40 hours worked, but employers could provide more generous paid leave. The measure would require employers to allow use of paid sick leave after 90 days of employment. Sick leave could be used to meet an employee's own medical needs or to care for a family member's medical needs. Family members would include: a spouse or registered domestic partner; a child; a parent, step-parent, or legal guardian; a grandparent; a grandchild; and a brother or sister. Paid sick leave could also be used when the employee's place of business or their child's school or childcare is ordered to be closed for a health related reason. Paid sick leave could be used for domestic violence leave.

An employer could require employees to give reasonable notice when they want to take paid sick leave. Where an absence from work will last longer than three days, employers could also require verification that the employee is taking leave for an authorized purpose. An employer could not require an employee to search for or find a replacement worker in order to be able to take paid sick leave.

Employers would be required to provide their employees with regular notice about the amount of paid sick leave they have earned. Up to 40 hours of sick leave could be carried over to the following year, and employers could allow more carryover if they wish. Employers would not have to pay employees for their unused sick leave when the employee leaves. Where an employee leaves a job and is rehired by the same employer within one year, previously earned sick leave would have to be reinstated.

The measure would make the state Minimum Wage Act, including its minimum wage, overtime, and new paid sick leave requirements, expressly apply to people who contract with the Department of Social and Health Services to provide care to disabled people under certain programs. But the measure does not otherwise expand the state Minimum Wage Act to make it apply to other workers who are not currently covered.

Employers would not be allowed to discriminate or retaliate against an employee or impose discipline against an employee for proper use of paid sick leave. An employee could not agree to receive less than what he or she is entitled to under the initiative. The Department of Labor and Industries would enforce the new law and would have to adopt rules for implementing and enforcing it.