Washington: Legislative Update
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Discussion
Washington employers should be aware of continued expansion of worker protections. Recent legislation changes are summarized below.
Driver’s License Restrictions
Effective July 27, 2025, SB 5501 prohibits employers from requiring a valid driver’s license as a condition of employment or for a job opening. Employers can only request a valid driver’s license if driving is one of the essential job functions or is related to a legitimate business purpose for a position. Violations can result in statutory damages equal to actual damages or $5,000, whichever is greater. For a first violation, the civil penalty is $500. Repeat violations are $1,000 or 10% of damages, whichever is greater.
Unemployment Benefits for Strikers
Effective January 1, 2026, SB 5041 will provide unemployment benefits to workers on strike or who are locked out by their employer. Previously, unemployment benefits were expressly excluded for those workers. Benefits for striking workers begin after the disqualification period ends. The disqualification period ends the second Sunday after the strike begins or the date the strike ends, whichever is first. There is no disqualification period for locked out workers. The one-week waiting period applies to both groups of workers.
Striking workers can receive up to six weeks of benefits, while locked out workers can receive up to 26 weeks of benefits. If benefits are issued as the result of a strike, the Employment Security Department (ESD) will notify the employer of mediation services available through the Public Employment Relations Commission. Benefits paid will be charged to the experience rating account in the event of a strike for a “covered contribution paying base year employer.” If a contribution paying employer is charged benefits due to a strike, the ESD will determine whether the employer is eligible to make a voluntary contribution and provide notice to eligible employers of the ESD’s determination.
If an eligible employee also receives retroactive wages for any week where they received unemployment benefits, the ESD will issue an overpayment assessment to recover the benefits. If a court finds a strike to be unlawful, employees must also repay benefits received. The law is set to expire on December 31, 2035. The legislature is required to review the law and decide whether to renew it.
Seattle Commute Trip Reduction Program Changes
Effective June 13, 2025, Ordinance 127229 amends the Seattle Commute Trip Reduction Program to include remote employees in the definition of “affected employee” and modifies strategies for compliance. Remote employees are excluded from the definition if they live more than 150 miles from the worksite, go to the worksite once per year or less, and work from home or a site near home. The purpose of the program was to reduce traffic congestion and air pollution by providing alternatives to driving for commuters. Employers with 100 or more employees who report in-person, hybrid, or remotely to a work site between 6 a.m. and 9 a.m. and live within 150 miles of Seattle are required to:
- Appoint an individual to act as an Employee Transportation Coordinator to be a primary contact between the employer and the city and administer the Commute Trip Reduction Program;
- Submit a program report to the city for review and approval every two years;
- Conduct a commuter survey once every two years to measure employees’ commute patterns; and
- Exercise a good faith effort by collaborating with the city in its administration and implementation of the law.
The Ordinance also modifies the strategies a covered employer can implement in order to comply with the program. Under Category B, to ensure non-drive-alone commutes are preferable options, employers can provide employee financial assistance or company-owned assets for a hybrid or remote office setup or provide subsidies for scooter share, bike share, or other shared mobility employee memberships. Under Category C, for parking management, discouraging driving single-occupancy vehicles to the workplace by omitting parking subsidies must apply to at least 90% of affected employees in order to count towards a compliance strategy.
Action Items
- Review and update job descriptions and job postings to evaluate requirement for valid driver’s license.
- Discuss impacts to experience rating and voluntary contribution to the Unemployment Insurance Trust Fund with legal counsel, if applicable.
- Review and update Seattle Commute Trip Reduction Program compliance requirements, if applicable.
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. © 2025 ManagEase