Washington
Washington: Legislative Updates
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Discussion
The Washington legislature concluded its 2026 session with the passage of several significant labor and employment-related measures affecting employer obligations across a wide range of subject areas. Below is a summary of the key laws that Washington employers should be aware of.
Definition of Employer. Effective March 17, 2026, SB 6106 amends Washington’s mini-WARN law to remove “any Indian tribe” from the definition of “employer.”
Employee Privacy. Effective June 11, 2026, HB 2303 prohibits employers from requesting, requiring, or coercing employees to have a microchip implanted for any reason. The term “microchip” excludes devices attached to the skin via an adhesive strip or a bracelet, as well as devices implanted in an individual for a health condition. The law allows employees affected by employer violations to bring a civil action and obtain injunctive relief, actual damages, punitive damages, and reasonable attorneys’ fees and costs.
PFML Contributions. Effective June 11, 2026, HB 2345 revises how Washington Paid Family and Medical Leave (PFML) premiums are allocated between medical leave and family leave in response to updated IRS guidance. The law does not change the total PFML premium amount. Instead, it adjusts the split between medical and family leave premiums to help employers avoid additional federal tax liabilities, since employer contributions for paid family leave are not subject to federal employment taxes. Under the revised structure, employers may deduct the full employee share of the medical leave premium, while the deductible amount for the family leave premium is calculated based on a formula accounting for both the total family leave premium and a portion of the medical leave premium. The Washington Employment Security Department (ESD) is expected to issue implementation guidance later this year, with any adjusted premium rates anticipated to take effect January 1 of the following calendar year consistent with the program’s normal annual recalculation schedule.
Collective Bargaining Rights for Employees Not Covered by the NLRA. Effective June 11, 2026, HB 2471 will act as a new “trigger” law, establishing a state-level framework governing collective bargaining rights for employees, employers, trades, or industries that would lose coverage under the federal NLRA. The law is triggered if federal law ceases to preempt state regulation, or if the NLRB determines that it lacks jurisdiction, declines to exercise jurisdiction, or is otherwise deprived of jurisdiction over the relevant employees or industries. The new law extends the right to organize, bargain collectively, and seek representation to private-sector employees not otherwise covered, and outlines procedures for union certification, bargaining, dispute resolution, arbitration, and strikes. The law also grants concurrent jurisdiction to the state’s Public Employment Relations Commission and Washington State Superior Courts for enforcement and oversight of these processes.
Penalties for Wage Payment Laws. Effective June 11, 2026, HB 2479 significantly expands the Department of Labor & Industries’ (L&I) authority to investigate and penalize wage violations. Most notably, the law eliminates the previous $20,000 cap on civil penalties for willful wage violations, replacing it with a $1,500 minimum penalty per affected employee with no upper limit. The law also lowers the practical threshold for establishing willfulness by treating repeated complaint resolutions as evidence of willful conduct. Additionally, L&I is now authorized to expand investigations beyond the original complaint whenever it identifies common questions of law or fact, meaning a single employee wage claim could trigger a broader, company-wide investigation without the need for additional complaints.
Wage Complaint Investigation Procedures. Effective June 11, 2026, SB 6058 shifts L&I’s wage complaint investigations from mandatory to discretionary, allowing the agency to prioritize complaints based on factors such as the severity of the violation, the number of employees affected, the harm to the affected employee, and the probability of retaliation. The law also clarifies that the statute of limitations for an employee’s civil wage action is tolled from the date the complaint is filed with L&I, rather than from when an investigation begins, providing employees with a longer window to pursue civil claims. Additionally, L&I must waive civil penalties for willful violations if the employer is not a repeat violator and has paid all wages and interest owed within 10 business days of receiving a citation.
Immigration-Related Terminology. Effective June 11, 2026, HB 2632 replaces the term “alien” with “noncitizen” in several Washington statutes, and requires all state and local statutes and other official documents enacted after July 1, 2026, to use the term “noncitizen” instead of “alien” when referring to an individual who is not a citizen or national of the United States. There are limited exceptions where the term “alien” may be required to comply with federal law or funding requirements.
Potential UI Overpayment for Striking Workers. Effective June 11, 2026, through December 31, 2035, SB 6134 requires the ESD to notify striking workers at the time they apply for unemployment insurance (UI) benefits that they may be subject to an overpayment assessment if they later receive retroactive wages from their employer as part of a strike resolution. While the law primarily imposes obligations on ESD rather than employers directly, employers engaged in or anticipating labor disputes should be aware that striking employees in Washington may be eligible for UI benefits during a strike.
Employer Reporting. Effective June 11, 2026, SB 5874 modifies the penalties for reporting errors regarding unemployment compensation. The bill also amends the requirements for reporting employee information, including Socal Security numbers and standard occupational classifications.
UI Eligibility for Employees Who Volunteer for Layoffs. Effective for claims filed on or after June 14, 2026, HB 2264 clarifies that employees who volunteer to be included in an employer-initiated layoff or reduction in force are eligible for UI benefits and are deemed to have been separated from employment through no fault of their own, provided certain conditions are met. Notably, the law does not apply to situations where an employer modifies benefits or encourages early retirement or early separation outside of the formal layoff announcement process required under the law.
Immigrant Worker Protections. Effective October 1, 2026, HB 2105 establishes Washington’s Immigrant Worker Protection Act and requires employers to provide written notice to all workers and their authorized representatives, if any, within five business days of receiving a federal Notice of Inspection of Employment Eligibility Verification Forms I-9. Employers must also provide written notice to affected workers within five business days of receiving the results of any such inspection, including a description of any identified deficiencies, applicable correction timeframes, and notice of the worker’s right to representation during any corrective meetings. By September 1, 2026, the State Attorney General must develop and make available a model notice and a required poster that employers must post in a conspicuous location by the law’s effective date. Violations may be enforced by the State Attorney General, who may seek statutory damages of $500 per worker per violation, and workers may also bring private civil actions seeking the greater of actual damages or statutory damages equivalent to 40 times the state hourly minimum wage per violation.
Pregnancy Accommodations. Effective January 1, 2027, SB 6014 amends the state’s existing pregnancy accommodation requirements under the Healthy Starts Act and the Public Records Act. The law clarifies that under the Healthy Starts Act, employers may not require certification for certain pregnancy-related accommodations relating to providing more frequent, longer, or flexible restroom breaks; modifying a no-food or drink policy; providing seating or allowing employees to sit more frequently if the employee’s job requires the employee to stand; and limits on lifting over 17 pounds. The amendment also clarifies that under Washington’s Public Records Act, identifying personal information of employees and applicants who file complaints, request assistance, or participate in investigations under the pregnancy accommodation statute is confidential and exempt from public inspection, subject to limited exceptions.
Health Care Benefits for HIV Treatment. For all health plans issued or renewed on or after January 1, 2027, SB 6183 requires health carriers to cover all FDA-approved HIV antiviral drugs without prior authorization, step therapy, or any other utilization management protocols, with limited exception.
Noncompete Agreements. Effective June 30, 2027, HB 1155 will render all noncompete agreements void and unenforceable, regardless of when they were signed, effectively banning noncompete agreements for employees and independent contractors in Washington. The new ban extends to higher-salaried individuals who were previously permitted to be bound by such agreements under Washington’s existing restrictive covenant statute. The new law broadly defines prohibited noncompete covenants to include any written or oral agreement restraining an employee or independent contractor from engaging in a lawful profession, trade, or business, and expressly extends that definition to forfeiture and repayment provisions tied to competitive activity.
Under the new law, certain agreements remain permitted but must be narrowly construed to be enforceable. Confidentiality agreements are excluded from the definition of prohibited noncompete agreements, though the statute does not define the term and requires narrow construction of all exceptions. Non-solicitation agreements are also permitted in two limited forms: (1) agreements prohibiting the active solicitation of current employees upon termination of employment, and (2) agreements prohibiting solicitation of current or prospective customers with whom the employer developed a direct relationship through the employee’s work, provided the restriction expires no later than 18 months following termination. Additionally, educational expense repayment provisions are permitted if they expire within 18 months of the employee’s start date, limit repayment to the pro rata portion of the remaining period, and release the employee from any repayment obligation if separation is based on “good cause” as defined under Washington’s unemployment benefits statutes.
Notably, by October 1, 2027, employers must make reasonable efforts to provide written notice to all current and former employees and independent contractors with a noncompete covenant still within its effective period, informing them that the covenant is void and unenforceable.
Labor Protections for Domestic Workers. Effective July 1, 2027, HB 2355 establishes comprehensive labor protections for “domestic workers,” including nannies, childcare providers, home care workers, housekeepers, cooks, gardeners, and household managers. The law applies to individuals who work four or more hours in any month in a private residence for a hiring entity, whether compensated as employees or independent contractors. The law requires hiring entities to pay covered domestic workers minimum wage and overtime, provide written agreements disclosing job terms and workers’ rights using model disclosure statements to be developed by the state, and provide advance written notice before termination or pay severance in lieu of notice. The law also restricts or limits the use of nondisclosure, nondisparagement, arbitration, and noncompete agreements entered into with domestic workers. Certain workers are exempt, including those performing casual labor, irregular babysitting, pet sitting, dog walking, or house sitting, as well as certain home care agency employees and family members of the hiring entity. Violations may be enforced by L&I or through private civil actions, with recovery of civil penalties and attorneys’ fees available to aggrieved workers.
Workers’ Compensation. Effective January 1, 2028, SB 5847 requires employers to notify workers injured on the job that they have the rights to choose a medical provider of their choice when seeking workers’ compensation.
Action Items
- Review and update employment policies and procedures for compliance with prohibitions against microchip implantation.
- Review PFML payroll practices and prepare for future adjustments.
- Consult with legal counsel to evaluate potential liability under the new collective bargaining trigger law.
- Review wage compensation practices and internal complaint procedures.
- Develop internal procedures for notifying workers of a federal Form I-9 inspection notice, and post the required Attorney General poster by October 1, 2026.
- Review pregnancy accommodation policies and certification practices for compliance with updated requirements.
- Review health insurance plan documents with benefits provider for compliance with expanded HIV treatment coverage requirements.
- Consult with legal counsel on any existing noncompete agreements.
- Review onboarding and compensation practices of domestic workers, if applicable.
- Prepare to update workers’ compensation notification procedures.
- Have appropriate personnel trained on the requirements.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase