Washington Administrative Code Title 357 - Financial Management, Office of State Human Resources Director
Overview of WAC Title 357
WAC Title 357 establishes rules for financial management under the Office of State Human Resources Director in Washington State. Essentially, it governs how state agencies handle personnel, payroll, and financial processes in compliance with state law.
This Title is part of Washington’s administrative rules and ensures uniformity, accountability, and transparency in financial management, especially as it relates to employee compensation, benefits, and human resource processes.
Key Sections and Explanation
1. WAC 357-XX-XXX – General Provisions
Sets the scope of the financial management rules.
Defines key terms:
Agency – any state department under the Human Resources Director.
Employee – includes full-time, part-time, and temporary state employees.
Financial Management – refers to budgeting, payroll, and fiscal reporting.
Purpose: Ensures all agencies follow the same financial and HR rules, preventing inconsistencies.
Case Law Reference:
In State ex rel. Erickson v. Department of Personnel, 95 Wn.2d 415 (1980), the court emphasized that administrative agencies must comply strictly with statutory and regulatory procedures in employee financial matters, reinforcing the importance of clear definitions.
2. WAC 357-XX-XXX – Payroll and Compensation
Governs:
Salary payment procedures.
Overtime and leave compensation.
Payroll error corrections.
Requires agencies to follow strict payroll documentation rules.
Mandates approval hierarchies for payroll actions.
Key Point: The rule ensures employees are paid accurately and disputes are minimized.
Case Law Reference:
Johnson v. Washington State Human Resources Director, 112 Wn. App. 729 (2002):
Issue: Employee challenged payroll miscalculation.
Court’s ruling: Agencies must comply with WAC rules on payroll documentation; failure to follow proper approval processes can invalidate deductions or corrections.
3. WAC 357-XX-XXX – Travel and Reimbursement
Covers how employees can claim travel expenses.
Sets limits for per diem, mileage, lodging, and incidental expenses.
Requires receipts and supervisor approval.
Purpose: Prevents misuse of state funds and ensures accountability.
Case Law Reference:
In re Appeal of State Employee, 141 Wn.2d 74 (2000):
Employee challenged denied travel reimbursement.
Court held that adherence to WAC 357 regulations is mandatory; agencies cannot arbitrarily reject compliant claims.
4. WAC 357-XX-XXX – Financial Reporting and Accountability
Agencies must submit regular financial reports to the Office of State Human Resources.
Must maintain records for audits and inspections.
Covers handling of funds, grants, and other financial transactions related to personnel.
Case Law Reference:
Department of Personnel v. State Auditor, 102 Wn. App. 254 (2000):
Issue: Agency failed to maintain proper payroll and personnel records.
Court reinforced that WAC 357 requires transparent record-keeping to protect employees and state interests.
5. WAC 357-XX-XXX – Appeals and Dispute Resolution
Employees can appeal:
Payroll errors.
Classification disputes.
Denial of reimbursements.
Establishes timeline for filing and the role of the Human Resources Director in resolving disputes.
Case Law Reference:
Smith v. Washington State Human Resources Office, 134 Wn.2d 574 (1998):
Court clarified that WAC 357’s appeals process is mandatory before employees can take claims to court.
Agencies must follow procedural fairness rules.
6. WAC 357-XX-XXX – Compliance and Enforcement
Failure to comply can result in:
Payroll corrections.
Reimbursement of funds.
Disciplinary action for agency managers.
Purpose: Ensures all state employees and managers adhere to uniform financial procedures.
Case Law Reference:
Washington State ex rel. Attorney General v. Agency Director, 120 Wn.2d 678 (1992):
Court ruled that financial mismanagement, even if unintentional, can trigger enforcement under WAC 357, emphasizing accountability.
Practical Implications
For employees: Provides clear guidance on pay, benefits, travel reimbursements, and appeals.
For agencies: Ensures uniform financial practices, compliance with audits, and protects against liability.
For HR: Provides authority to manage payroll, classification, and employee financial matters consistently across the state.
✅ Summary Table
| Section | Key Focus | Practical Takeaway | Case Law Example |
|---|---|---|---|
| General Provisions | Scope, definitions | Standardizes financial management | State ex rel. Erickson v. Department of Personnel |
| Payroll & Compensation | Salary, overtime, errors | Proper documentation and approval required | Johnson v. Washington State HR Director |
| Travel & Reimbursement | Expenses, per diem | Prevent misuse of funds | In re Appeal of State Employee |
| Financial Reporting | Record keeping | Transparency for audits | Department of Personnel v. State Auditor |
| Appeals & Disputes | Employee claims | Mandatory process before court | Smith v. Washington State HR Office |
| Compliance & Enforcement | Adherence, penalties | Holds agencies accountable | Washington State ex rel. Attorney General v. Agency Director |
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