AG’s office defends workers’ right to moonlight in settlement with Kiddie Academy

The Attorney General's Office entered a consent decree today with seven Kiddie Academy childcare centers resolving claims they illegally prevented employees from working other jobs in their off hours. Under Washington law, employers can't restrict workers' ability to work a second job or work as an independent contractor if they are paying those workers less than twice the hourly minimum wage. Employment restrictions can keep workers in jobs they would prefer to leave, and outside employment can provide additional income and new opportunities.

Under the terms of the settlement, the childcare centers will pay $252,500 to the affected workers and reform their policies. This is the first case resolved by Attorney General Nick Brown's Worker Rights Unit established in November 2025.

"Our economy has delivered incredible prosperity to some Washingtonians, but workers are facing rising prices and fewer opportunities," said AG Nick Brown. "Our Worker Rights Unit was created to support workers and enforce labor protections, and that's exactly what we did in this case. We will continue to hold employers accountable when they break Washington law."

Kiddie Academy is a nationwide childcare company that operates in a franchise model. The seven childcare centers included in this consent decree are all related franchises, Seattle Academy LLC, Bellevue Childcare LLC, Bothell Academy LLC, Greenwood Academy LLC, Kenmore Academy LLC, Mill Creek Academy LLC, and Redkirk Academy LLC, which are in King and Snohomish counties.

The AG's office received complaints from childcare center workers that their employer restricted them from providing childcare services outside work hours to families who were currently or formerly enrolled at the school. The AG's office alleges that prohibiting employees from taking outside employment or working as independent contractors is a clear violation of Washington law. The office also alleges the company's policies included non-disparagement clauses that did not include whistleblower protections required by law.

The settlement requires the childcare centers to pay $252,500 to workers who were harmed by the illegal policies. The AG's office estimates more than 600 workers may have been impacted, since the policies were companywide. The childcare centers must distribute the fund and report the settlement payments made to the AG's office.

The childcare centers must also change their policies so that employees are not restricted from obtaining outside work and that their non-disparagement clause includes whistleblower protections. The AG's office will monitor their compliance for the next two years.

AGO attorneys and staff who worked on this case include Assistant Attorney General Mark Rose and Paralegal Victoria Barbaglia.

In 2027, the minimum wage in Washington will be $17.73 an hour for most workers. The law that guarantees workers' ability to seek outside employment will apply to workers making less than $35.46 an hour in much of the state, though that number will be higher for workers in localities with a higher minimum wage.

Washington workers who believe their rights have been violated can contact the Worker Rights Unit.

Read the consent decree.

-30-

Washington's Attorney General serves the people and the state of Washington. As the state's largest law firm, the Attorney General's Office provides legal representation to every state agency, board, and commission in Washington. Additionally, the Office serves the people directly by enforcing consumer protection, civil rights, and environmental protection laws. The Office also prosecutes elder abuse, Medicaid fraud, and handles sexually violent predator cases in 38 of Washington's 39 counties. Visit www.atg.wa.gov to learn more.

Media Contact:

Email: [email protected]

Phone: (360) 753-2727

General contacts: Click here

Media Resource Guide & Attorney General's Office FAQ