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Evergreen Reporter

Sunday, April 6, 2025

Washington legislative session focuses on unemployment and worker benefits

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Brad Close President | NFIB Washington

Brad Close President | NFIB Washington

State Director Patrick Connor provided an update from Olympia on the small business agenda following Week 7 of the legislative session. The first fiscal cut-off occurred on February 28, with the House Appropriations and Senate Ways & Means committees holding executive sessions to consider amendments and vote on various bills.

Two bills of particular concern to NFIB and Washington's small business owners are pending before Senate Ways & Means. SB 5041 concerns unemployment insurance benefits for striking or locked-out workers. NFIB opposed this bill, questioning the Employment Security Department's (ESD) revised fiscal note that used data from New Jersey to minimize potential impacts on the Unemployment Trust Fund or employer taxes. NFIB argued that if a large employer at UI Rate Class 40 experiences an extended strike or ceases operations, small employers would face increased rates due to the social tax component.

SB 5548 addresses workers' compensation benefits and was slated for approval during Friday’s meeting. Initially aimed at ensuring injured workers could maintain health insurance coverage, it faced opposition due to its $376 million cost over five years. Both SB 5548 and its companion HB 1788 have been narrowed but still represent a significant increase in workers' compensation benefits.

NFIB also testified against SB 5626, which proposes creating unemployment insurance benefits for individuals not legally eligible to work in the United States by using a private third-party administrator (TPA). Critics argue this would lead to increased costs for employers despite claims otherwise.

HB 1213 seeks to expand protections for workers under the state paid family and medical leave program. This bill requires all employers to provide job protection and maintain health insurance coverage during leave periods. It also allows leave in four-hour increments rather than eight as currently required. Despite projected substantial cost increases, proponents claim no tax rate hike is necessary.

NFIB is coordinating efforts around HB 1483 and SB 5423 concerning the Right to Repair digital electronic devices, advocating for their passage through floor votes in both chambers.

As both chambers begin daily floor sessions next week, ending March 12 with the House of Origin cut-off deadline, stakeholders are urged to stay engaged as priority bills arise.

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