Washington Cottage Food Laws: An Introduction
Cottage food laws allow residents to prepare certain types of low-risk foods at home for sale to the public within specific conditions. In Washington, the cottage food law, RCW 69.22 RCW 69.22. 010 et seq., dictates which foods may be prepared at home, where you can sell the foods, what labeling is required , and which permits to apply for.
Any foods prepared outside of the requirements of the law must be prepared in an inspection grade commercial kitchen. Local health jurisdictions (LHJs) contract with Washington State Department of Health (DOH) to inspect and oversee these kitchens. Furthermore, any food products that require industrial kitchen equipment, specific processes such as pasteurization or cooking, or require extensive packaging and preparation procedures are prohibited under the law.
Who Is Eligible for Cottage Food Permits?
To sell a cottage food product in Washington State, you must first be eligible to do so. The first step in eligibility is residency: you must live in Washington State. Next, you must apply for a Cottage Food Operator license through the Washington State Department of Agriculture (WSDA) and pay a fee of $65 to do so. You must pass a food safety exam proctored by your local health department to get licensed. Currently, the health department charges approximately $45 for the food safety exam process.
Each Cottage Food Operator has limits on the amount they can sell annually. Operators are limited to 24,000 units of food made per year. Operators cannot have more than $50,000 in gross sales. Note that these gross sales limits do not include donations fees. But if you are receiving public donations or grants for your cottage food business, be aware that donations received are considered part of your total gross sales.
Next, you may need to apply for additional permits or licenses to sell your food products. You may be required to obtain a Washington business license. In addition, it’s possible you may need to have a home occupation permit from your local planning department (often part of your city or county government). If you plan to sell your food products at farmers markets, you may require a vendor permit. It doesn’t make sense to have multiple people involved in the initiation of your business, and I would strongly advise that you do not submit cottage food applications until you are confident that you meet all necessary eligibility requirements. But keep in mind that none of the above permits or licenses will necessarily be required at the time your WSDA application is approved. Each locality does things differently and it would be way too easy for the system to break down if all permits and licenses were required to be obtained prior to the issuance of the WSDA Cottage Food Operator license.
Foods That Are Allowed and Not Allowed
As I alluded to in the last section, the permitted foods and banned foods under the cottage food laws are surprising to some people. It is our hope that this guide can prevent anyone from getting in trouble because they did not realize they were permitted or not permitted.
What Types of Foods Can be Made Under the Cottage Food Laws?
Baked goods – Muffins, cakes, cookies, muffins, breads, granola bars, brownies, and other similar foods.
Packet Mixes – Granola mixes, seasoning mixes, cereal mixes, drink mixes, and milkshakes.
Dried Fruits and Vegetables – Dehydrated potatoes, mushrooms, zucchini chips, and vegetable chips.
Candies and Confections – Candies, brittle, caramels, chocolates, and other confections.
Snack Foods – Trail mix, popcorn, nuts, pretzels, chips.
Pickles, Jams and Jellies – Pickled vegetables, jams, jellies, preserves, salsas, sauces, and spreads, just to name a few.
Honey
Wines, Hard Ciders and Other Types of Non-Alcoholic Beverages
All of these foods must have a pH level of 4.6 or lower and you should take every reasonable step in ensuring that label, packaging, and even advertising, is not misleading. The law also prohibits you from making any claims that your food has specific health benefits.
There are so many different types of foods that people can make under the cottage food laws in Washington State that it really just depends on your own creativity. However, there are still foods that you cannot make without a permit – frozen foods, cosmetics, low-acid canned foods, and so-called potentially hazardous foods. This means that items like deli salad vegetables, relish, and meat canning are prohibited.
Some changes are coming to the permitted and prohibited foods. On January 1, 2017, the law will change regarding food processors. The new law will not prohibit fermented foods or bread as long as they do not include yeast.
Labeling and Packaging Regulations
While the state acknowledges that most consumers will make their own decisions about investigating or understanding the ingredients of cottage foods, and that many people will be ignorant of the additional elements that many Cottage Food Operators may choose to include on their labels, it is important to retain a standard that requires the labeling of critical information about a product so as to aid those consumers that do not. If a product is allegoric, it must be noted in bold print and placed in a direct line under the product name.
There are several specific items regarding the labeling of cottage foods that Washington has made mandatory, and they include:
- Commonly recognized allergy causing foods: Dairy, egg, fish, peanuts, soy, wheat, tree nuts, sulfites, corn, peanuts, sesame seeds, and mustard.
- Commonly recognized food additive: MSG (monosodium glutamate).
- Name of product.
- Ingredients listed, in order of predominance by weight.
- The amount of product in common measurements such as net weight, net contents, net volume/size etc.
- "Produced in a (insert name): kitchen" in 100 pitch type face or larger font, with the inside side of the circle being at least one inch in diameter.
- List of allergens ingredients, in bold and in direct alignment under product name.
- Statement stating that product is made in a home kitchen that is not subject to inspection and that it is not FDA approved.
- Full legal name and residence address of the business, including street address and telephone number (city, state, zip code) must be on label and on some form of physical attachment that goes with the product.
Sales Capacities and Distribution Methods
In Washington state, cottage food operators are subject to a hard cap on their annual sales. The amount varies based on the classification of their product. Operators of products in Class 1 (e.g., jams, jellies, and preserves) are permitted by law to earn up to $15,000 in gross annual sales. Those in Class 2 (e.g., baked goods without cream, custard, or meat fillings, vinegar, and granola or trail mix) are permitted to earn up to $25,000 annually. Lastly, Class 3 (e.g., dried pasta, popcorn, and chocolate-covered nonperishable pretzels) products are subject to unlimited sales.
While these sales limitations may seem excessive, generally speaking, a cottage food operator would be permitted to earn income in their first year of operation as follows:
Class 1: up to $29,500 Class 2: up to $49 , 200 Class 3: unlimited
As for distribution, cottage food products must be sold directly to the consumer, and must not be resold further down the supply chain. However, there are some exceptions. In Washington, products may be incorporated into other foods or beverages, including coffee shops that use cottage food mixes such as scone or muffin mixes. Distribution is also permitted within the confines of a catering business. Cottage food sales are also permitted at the following venues:
Cottage food sales are now subject to Washington’s tax requirements. Sales tax means a new cost of doing business for cottage food operators, and they will need to collect a tax for their cottage food sales and remit that amount to Washington’s department of revenue. Tax-exempt sales are not permitted in Washington.
Health and Safety Guidelines
In addition to the labeling, packaging, and sales regulations, Washington Cottage Food Operators must also comply with certain health and safety standards. These include proper facility sanitation, regular inspections, and for some producers, maintaining a Food Service Worker’s Permit.
Sanitation
All cottage food must be prepared in a sanitary manner. It is important that cottage food operators be familiar with standard sanitation practices. For example, utensils, dishes, containers, cutting boards, countertops, and other surfaces must be washed, rinsed and sanitized using the correct procedure.
Inspections
Department of Agriculture inspection is not routinely required for cottage food operations. Here are some things to think about, though.
Food Service Worker’s Permits
Those who process cottage foods are not required to possess a Food Service Worker’s Permit. Only cottage food makers (e.g., home bakers) are exempt from this requirement. However, Cottage Food Fair Service Workers (those who package and/or sell cottage foods) must obtain a permit. The Department of Health does not issue or require a permit specific to cottage food sales.
Changes & Future Considerations
In 2018, the Washington State Legislature passed Substitute House Bill 1525, which further liberalizes the sale of cottage food products. The bill specifically eliminates the need to obtain the Department of Health’s approval of a business plan. Under the new law, even "Class 3" and "Class 4" products can be sold without such a plan being approved by the Department of Health. This means that a business selling products considered "potentially hazardous" will not be required to submit a business plan which includes a list of the cottage food products to be sold, the name of a local county health department contact person, and, if applicable, a written assurance regarding hold and freeze practices. In short, anyone considering starting a Washington State cottage food business will have fewer bureaucratic hurdles to jump in order to bring his or her product to market.
Moreover, the new law limits the Department of Health’s authority to inspect cottage food businesses. Under the prior law, the law required the Department of Health to annually conduct an unannounced inspection. The new law eliminates this requirement. This means that the Department of Health can no longer conduct an annual inspection, and takes away the Department of Health’s power (sometimes used to exert pressure on operators) to require a food establishment permit for any cottage food producer that is "using food facilities."
The elimination of the yearly unannounced inspection requirement stems from a wide perception of overbearing enforcement, and an expensive and confusing licensing scheme. In fact, the Department of Health has previously assaulted the cottage food industry (as it was allowed to do under the prior law) with a first-of-its-kind statewide recall initiative at the same time as it issued thousands of fines to cottage food producers for failing to use the state’s large commercial food processors that all bakeries, regardless of whether they do their processing off-site, must use. The Department of Health’s actions have drawn strong negative reactions from the cottage food community in Washington State. For instance, in 2015, the Washington State Homemade Food Association spent $13,000 to lobby the legislature to limit the Department of Health’s prosecutorial discretion when issuing costly fines and to preserve access to out-of-state sales (which were formerly mandated to be sold through large-scale commercial food processors). Since the Department of Health has effectively been stopped from overreaching, it is unclear what its future moves, if any, on cottage food enforcement might be.
But legislative action may not be the only factor impacting the ultimate success of Washington’s cottage food law. The Washington State market may well play a significant role in determining the success or failure of the cottage food industry. Due to ever changing consumer preferences, the number of people participating in the cottage food industry has continued to grow. Over the past five years, the sale of pet food home based cottage food businesses has increased by 58 percent and along with the sale of sauces (up 51 percent) and cheese (up 42 percent).
The cottage food industry has been growing by leaps and bounds, and it is expected to continue to grow. In terms of legislative action, while the cottage food industry in Washington is likely to see some changes at the margin, it is unlikely to see sweeping legislation that might impact the positive course it is currently on.
Resources for Cottage Food Operators
Washington State provides a wealth of resources for those interested in the cottage food industry. The Washington State Department of Agriculture (WSDA) plays a key role, offering a comprehensive cottage food business guide on its website. This guide outlines various types of cottage foods allowed for sale, explains labeling requirements, and details the process for securing a cottage food permit. In addition to this guide, WSDA’s website offers answers to frequently asked questions that help demystify the regulatory process. Their contact information is readily available for those who have specific questions that aren’t addressed in the guide. Particularly helpful are their lists of cottage food FAQs that address both general and produce-related questions. State-sponsored workshops are another excellent way to get up to speed on Washington State cottage food laws. Many county cooperative extension offices in the state partner with WSDA to host a variety of cottage food workshops, including classes dedicated to specific product areas . These classes are often offered at affordable rates, and provide a great opportunity to get hands-on experience and learn directly from local experts. Online resources like the "Washington Cottage Food Law Resource Page" are also a must-visit for anyone looking to start a cottage food business. This page serves as a central hub for information on cottage foods, including rules, regulations, and other important data. It also provides links to a variety of other state websites that are useful for cottage food businesses. Finally, there are several cottage food community groups on social media, such as Facebook and Reddit, which offer a platform to connect with other business owners and seek advice. Many current cottage food operators are eager to share their firsthand experience about everything from compliance to pricing, and it can be an invaluable tool to network within this tight-knit community. Whether it’s through workshops, online resources, or community groups, Washington State offers cottage food operators multiple different ways to stay informed, get assistance and make valuable connections.