Governor Orders O’Reilly Auto Parts Repay $163K to WA Workers

Washington State is returning money to more than 2,000 Washington O'Reilly Auto Parts employees after their sick leave was illegally eliminated.

Washington Governor and L&I Secure $163K for Lost Sick Pay

More than 2,000 current and former employees of O’Reilly Auto Parts across Washington will soon receive part of $163,458 in restitution. The money is being awarded after an investigation by Gov. Bob Ferguson’s office and the Washington State Department of Labor & Industries (L&I) uncovered a violation of the state's paid sick leave law. It showed the retailer unlawfully eliminated unused paid sick leave for 2,327 employees when it switched payroll systems at the end of 2022.

Under Washington’s paid sick leave law, employers are required to allow workers to carry over up to 40 hours of unused sick leave from one year to the next. However, when O’Reilly transitioned to a new payroll vendor, the company incorrectly wiped out unused sick leave balances, and that affected employees at 160 locations statewide.

L&I has taken action to ensure the workers are compensated for their lost sick pay. Governor Ferguson said in a press release, “My administration will always center Washingtonians in every action we take and fight for fair treatment for workers.” He continued, “We will return this money to the hard-working employees who earned it. Labor & Industries will hold companies accountable to the people.”

The investigation started in September 2023 at O’Reilly’s Puyallup distribution center. Investigators discovered the issue involved multiple locations and confirmed improper elimination of sick leave had impacted many workers statewide.

L&I’s director, Joel Sacks, said paid sick leave is a key part of a worker’s total compensation. “Washington workers should always get the money they’ve earned, and paid sick leave is part of a worker’s total compensation,” Sacks said. “Thanks to our investigators, more than 2,000 workers have money coming to them.”

Workers would have had the option to either reinstate their unused sick leave or receive a payout for the value of that leave. However, most of the affected employees no longer work for O’Reilly, so L&I ordered the company to pay out the value of the lost leave to them. The total amount owed to these workers is $163,458.

This case is a significant win for workers in Washington and protecting workers' rights. If you are a worker who thinks you may be entitled to compensation for lost sick leave under this case, contact L&I for assistance.

This incident is not the first time O’Reilly Auto Parts has been scrutinized for labor-related issues. In 2023, Attorney General Bob Ferguson filed a lawsuit against the company, accusing it of systemic discrimination and retaliation against pregnant employees. The lawsuit alleged O’Reilly routinely denied reasonable accommodations to pregnant workers, like the ability to sit while working, limit lifting, or take restroom breaks, and then retaliated against them for requesting those accommodations.

Also, a 2014 investigation found O’Reilly to be discriminatory by denying health care benefits to same-sex spouses of employees. That case was led by the Attorney General’s Office and ended with the company revising its policies to extend health care benefits to same-sex couples nationwide.

If you are involved and feel you are owed money, reach out to L&I through email or by calling 1-866-219-7321. The department’s efforts continue to provide justice for employees whose rights have been violated.

O’Reilly Auto Parts, with nearly 160 locations across the state, has yet to comment on the restitution ordered by the state.