In late May, the Washington Legislature wrapped up its 2025 legislative session, enacting several important changes in employment law that affect both public and private sector employers. Many of these laws have already taken effect or will soon be implemented. There has also been employmentrelated activity in the courts and at the federal level. It is crucial for Washington employers to understand these developments and how they impact workplace policies and practices. Below are summaries of the most recent legislative changes and other activity.
SB 5104: EMPLOYEE SAFEGUARDS AGAINST COERCION RELATED TO IMMIGRATION STATUS
• Establishes civil penalties for employers who use coercion, especially threats related to immigration status, to prevent employees from exercising their legal labor rights. Each act of coercion is treated as a separate violation, with escalating fines up to $10,000. Employees have 180 days to file a complaint, and the Department of Labor & Industries (L&I) must investigate within 90 days. If L&I uncovers evidence of employer coercion while investigating a different complaint, it can launch a separate investigation and take enforcement action without needing the employee to file a new complaint.
• EFFECTIVE DATE: July 1, 2025
• NEXT STEPS FOR EMPLOYERS: Educate supervisors on the new law.
HB 1905: EXPANSION OF THE EQUAL PAY AND OPPORTUNITIES ACT – PROTECTED CLASSES
• Expands equity pay for all protected classes under RCW 49.60. Protected classes include age, sex, marital status, sexual orientation, race, creed, color, national origin, citizenship or immigration status, military or veteran status, disability, or the use of a service animal, as defined under the Washington Law Against Discrimination. Individuals may bring claims based on membership in more than one protected class. Remedies under the Act mirror those for gender-based claims, including statutory and actual damages, interest, and injunctive relief. The Department of Labor and Industries is required to develop educational materials and conduct outreach to employers and workers regarding the new protections.
• EFFECTIVE DATE: July 1, 2025
• NEXT STEPS FOR EMPLOYERS: Ensure compensation systems are neutral regarding protected classifications.
HB 1875: PAID SICK LEAVE FOR IMMIGRATION PROCEEDINGS
• Allows employees and transportation network company (TNC) drivers to use Washington paid sick leave to attend immigration-related judicial or administrative proceedings for themselves or their family members. If the absence exceeds three days, employers or TNCs may request verification, which can include documentation
from a professional assisting with the case or a written statement from the employee or driver. The documentation must not reveal personal immigration status or protected information, and confidentiality of communications is maintained.
• EFFECTIVE DATE: July 27, 2025
• NEXT STEPS FOR EMPLOYERS: Update policies addressing use of Washington paid sick leave for covered immigration-related activities. Ensure supervisors are aware that covered immigration leave is protected.
SB 5501: EMPLOYER LIMITS ON REQUESTING DRIVER’S LICENSES
• Prohibits employers in Washington from requiring a valid driver’s license as a condition of employment or stating such a requirement in job postings, unless driving is an essential job function or related to a legitimate business purpose. The Department of Labor and Industries (L&I) enforces the law, with penalties including damages, interest, and civil fines. Employees can appeal L&I decisions and recover costs and attorney’s fees if successful. The bill aims to reduce unnecessary barriers to employment and expands L&I’s authority under the Equal Pay and Opportunities Act.
• EFFECTIVE DATE: July 27, 2025
• NEXT STEPS FOR EMPLOYERS: Review all job descriptions and remove the requirement to have a valid driver’s license, unless the requirement can be legally justified. Ensure that job postings are screened to remove the driver’s license requirement where it is not justified by the position’s duties.
SB 5525: EMPLOYMENT LOSS NOTIFICATION FOR BUSINESS CLOSINGS AND MASS LAYOFFS (PRIVATE SECTOR ONLY*)
• Requires employers with 50 or more full-time employees to provide written notice to both the Employment Security Department (ESD) and affected employees or their bargaining representatives at least 60 days before a business closing or mass layoff. The bill clarifies notification content, timing, and responsibility in cases of business sales or extended layoffs. Exceptions apply for unforeseeable business circumstances, natural disasters, and certain construction projects. Employers who fail to comply are liable for back pay, benefits, and penalties, with enforcement actions allowed by employees, ESD, or unions. Additionally, employees on paid family or medical leave are protected from inclusion in mass layoffs unless exceptions apply.
• EFFECTIVE DATE: July 27, 2025
• NEXT STEPS FOR PRIVATE EMPLOYERS: In the event of mass layoffs, ensure compliance with Washington law in addition to the federal WARN Act.
SB 5408: EXPANSION OF THE EQUAL PAY AND OPPORTUNITIES ACT – WAGE AND SALARY DISCLOSURE CORRECTIONS
• Expands wage and salary posting requirements under the Equal Pay and Opportunities
Act by allowing employers a five-day opportunity to correct noncompliant job postings before penalties apply. This cure period applies to violations occurring through July 27, 2027 and is triggered by written notice from any person who identifies the error. Employers offering only a fixed wage amount may disclose that amount instead of a range, and postings that are digitally replicated without employer consent are excluded from enforcement. A separate enforcement structure is established outside the general Equal Pay and Opportunities Act, with statutory damages ranging from $100 to $5,000 per violation, depending on the severity and willfulness of the offense. Additional remedies may include actual damages, injunctive relief, and reinstatement.
• EFFECTIVE DATE: July 27, 2025
• NEXT STEPS FOR EMPLOYERS: Employers should continue to ensure that all job postings include a salary range or fixed wage amount as applicable. If employers receive a written notice regarding a noncompliant job posting, immediately update the job posting to avoid penalties.
HB 1308: EXPANSION OF ACCESS RIGHTS TO PERSONNEL RECORDS
• Expands employee access to personnel records by requiring private employers to provide a copy of an employee’s or former employee’s personnel file at no cost within 21 calendar days of a request, replacing the prior standard of a “reasonable time.” Personnel files now specifically include: job applications; performance evaluations; closed disciplinary records; leave and accommodation records; payroll records; and employment agreements, but only if such records exist. Former employees are also entitled to a written statement disclosing the effective date and reason for termination upon request. Enforcement is available through a private right of action, which may include statutory damages ranging from $250 to $1,000 depending on the delay, as well as equitable relief and attorneys’ fees.
• EFFECTIVE DATE: July 27, 2025
• NEXT STEPS FOR EMPLOYERS: Ensure that personnel records, as defined by the statute, are able to be produced within 21 days upon request. Update any applicable policies or procedures regarding the disclosure of “personnel files” and notify HR staff of these new requirements.
SB 5503: EXPANSION OF PERC AUTHORITY AND MODIFICATION OF PUBLIC SECTOR BARGAINING PROCEDURES
• Requires employers and unions involved in new organizing petitions to submit an offer of proof regarding disputed employee eligibility. If a proposed bargaining unit is deemed inappropriate but could be appropriate by including already represented employees, the Public Employment Relations Commission (PERC) must assess the existing unit’s appropriateness and either dismiss the petition or order an election. PERC may set hearing dates without party consent and draw adverse inferences for noncompliance with subpoenas, except when union privilege is properly invoked. The
bill also allows unions to consolidate bargaining units without employer agreement, prohibits grievance settlements from including waivers of statutory legal claims, and authorizes alternative arbitrator selection for Department of Corrections and Washington State Ferry employees.
• EFFECTIVE DATE: July 27, 2025
• NEXT STEPS FOR EMPLOYERS: Ensure grievance settlements do not include waivers of statutory legal claims.
HB 1821: EXPANSION OF “INTERESTED PARTY” DEFINITION UNDER PREVAILING WAGE LAW
• Section 1 of SHB 1821 expands access to certified payroll records on public works projects by including joint labor-management cooperation committees and Taft-Hartley trusts as “interested parties.” These entities may request records from contractors but may only use them to file prevailing wage complaints, not for union organizing or commercial purposes. Section 2 of SHB 1821 updates the definition of “prevailing rate of wage” under RCW 39.12 to clarify that it includes not only the employee’s hourly wage but also their usual benefits and overtime, as determined for the majority of workers in the trade within the largest city in the relevant county. If no majority exists at a single rate, the defined wage becomes the average paid to workers in that trade in that area.
• EFFECTIVE DATE: July 27, 2025 (Section 2 effective January 1, 2026)
• NEXT STEPS FOR EMPLOYERS: For employers who have workers who work on publicly funded construction projects, notify labor relations staff of the expanded access to payroll records, and work with payroll to ensure that workers are being paid in accordance with the updated definition of “prevailing rate of wage.”
SB 5191: INCLUSION OF DOCKWORKER EMPLOYER REPRESENTATIVES IN PAID FAMILY AND MEDICAL LEAVE PREMIUM COLLECTION
• Defines “employer” under the PFML program to cover representatives of employers who share dockworkers through a collective bargaining agreement. These representatives are required to report and remit PFML premiums for dockworkers covered by the collective bargaining agreement but are not obligated to report dockworkers not covered by such agreements, except for their own employees.
• EFFECTIVE DATE: July 27, 2025
• NEXT STEPS FOR EMPLOYERS: For employers of dockworkers, work with payroll to ensure that the requisite PFML premiums are being reported and remitted to ESD.
HB 1141: EXPANSION OF CANNABIS WORKERS FOR COLLECTIVE BARGAINING
• Establishes collective bargaining rights and procedures for agricultural cannabis workers on licensed farms. The Public Employment Relations Commission (PERC)
will oversee bargaining unit determination and dispute resolution. Employers must bargain in good faith and cannot interfere with employees’ rights. The bill covers union dues deductions, grievance arbitration, employee information sharing, and unfair labor practice enforcement. Courts may not extend these collective bargaining rights beyond the specified cannabis agricultural workers.
• EFFECTIVE DATE: July 27, 2025
SB 5682: EXTENSION OF EMPLOYMENT TRAINING TAX CREDIT
• Extends the business and occupation (B&O) tax credit for employers par ticipating in the Washington Customized Employment Workforce Training Program from July 1, 2026, to July 1, 2031. The program supports employers who train workers through community and technical colleges, with a focus on businesses with fewer than 50 employees. Employers repay training costs partially upfront and over 18 months, receiving a B&O tax credit equal to half their repayment.
• EFFECTIVE DATE: July 27, 2025
SB 5041: UNEMPLOYMENT INSURANCE BENEFITS FOR STRIKING AND LOCKED-OUT WORKERS
• Temporarily allows workers on strike or locked out to receive unemployment insurance (UI) benefits. Striking workers are eligible after a short disqualification period (ending the second Sunday after the strike begins or when it ends). Locked-out workers are no longer disqualified. Benefits are limited to six weeks for strike-related unemployment. If the strike is later found unlawful, or retroactive wages are paid, workers must repay benefits. ESD must notify employers of dispute resolution services available through PERC. Employers may also qualify for the Voluntary Contribution Program to offset rate increases. Provisions expire December 31, 2035, after which previous disqualification rules are reinstated.
• EFFECTIVE DATE: July 27, 2025 (Strike-related benefit provisions in Sections 1–7 effective January 1, 2026)
• NEXT STEPS FOR EMPLOYERS: In the event of a public sector strike, seek a legal ruling that the strike is illegal.
SB 5316: UPDATES TO WASHINGTON’S UNCLAIMED PROPERTY PROGRAM
• Extends the property abandonment period for employee reimbursements from one year to three years. It also lowers reporting thresholds for holders, including businesses, by reducing the aggregate reporting amount from $25 to $5 and the due diligence notification requirement from $75 to $50. These changes aim to improve accuracy and timeliness in unclaimed property reporting.
• EFFECTIVE DATE: July 27, 2025 (reimbursement provision); January 1, 2026
(reporting provision)
• NEXT STEPS FOR EMPLOYERS: Work with your accounts payable staff to ensure unclaimed property will now be retained for three years and reported properly.
HB 1332: TRANSPORTATION NETWORK COMPANY (TNC) DRIVER PROTECTIONS AND REPORTING
• Updates requirements for transportation network companies (TNCs) to provide detailed, downloadable trip receipts and weekly payment notices to drivers. Removes the need to report variable pricing policies but requires disclosure of trip-specific financial incentives or bonuses. Upon driver request, TNCs must provide up to 24 months of trip data in a searchable format. The bill also mandates TNCs to inform drivers about vehicle eligibility for different product classes and requires 120 days’ notice before changing vehicle requirements. Section 3 requires TNCs to restore product class eligibility for vehicles that were removed due to age or model limits in the 12 months before September 1, 2025, and keep them eligible for at least 12 months after that date.
• EFFECTIVE DATE: September 1, 2025 (Section 3 effective July 1, 2026)
• NEXT STEPS FOR EMPLOYERS: TNC employers should ensure that they can provide the requisite trip receipts and payment notices.
SB 5101: LEAVE AND SAFETY ACCOMMODATION FOR HATE CRIME VICTIMS
• Allows employees to take reasonable leave or request safety accommodations if they or a family member are victims of a hate crime. Employers may ask for verification but cannot discriminate or retaliate against victims. Hate crimes include assault, threats, or property damage based on perceived traits like race, gender, or religion, including those committed online.
• EFFECTIVE DATE: January 1, 2026
• NEXT STEPS FOR EMPLOYERS: Adopt policy informing employees of this new safety accommodation. Employers that already have a policy addressing safety accommodations for victims of domestic violence, sexual assault, and stalking could simply expand that policy to encompass this new entitlement.
HB 1213: EXPANDING PROTECTIONS UNDER PAID FAMILY AND MEDICAL LEAVE
• Expands worker protections under Washington’s Paid Family and Medical Leave Program (PFML) by gradually lowering the employer size threshold for job protection from 25 employees in 2026, to 15 employees in 2027, and to 8 employees by 2028. This is significant, as under current law, only employers with 50 or more employees are required to provide protected leave; a new $3,000 grant is established to help employers with fewer than 50 employees cover costs related to employee leave. The new law also replaces the existing requirement that an employee work 1,250 hours
in the 12 months preceding the leave request (which parallels FMLA eligibility) to be eligible for protected leave; going forward, employees will be eligible after only 180 calendar days of employment with the current employer. Additionally, the minimum claim period is reduced from eight to four hours. Employers are also required to maintain health care coverage during PFML leave when job protection applies, regardless of whether PFML leave overlapped with FMLA. Employers may have some greater ability to reduce “stacking” of FMLA and PFML leave, as employers can advise employees on FMLA that certain periods of unpaid FMLA leave will count against their protected leave entitlement under the PFML. The Employment Security Department (ESD) will conduct audits of employer files to ensure compliance.
• EFFECTIVE DATE: January 1, 2026
• NEXT STEPS FOR EMPLOYERS: Revise leave policies to incorporate changes to PFML. Employers interested in taking advantage of the ability to limit leave stacking will need to create or revise leave notification forms to provide the required notice to employees.
HB 1879: MEAL AND REST BREAK FLEXIBILITY FOR HOSPITAL WORKERS
• Allows hospital employees and employers to voluntarily waive meal and rest breaks under certain conditions, such as skipping a meal period on shifts under 8 hours or adjusting the timing of breaks within the shift. Waivers must be in writing, revocable at any time, and stored electronically. Although waived breaks are not counted against hospital in compliance reports, they must report them quarterly. Beginning July 1, 2026, hospitals not meeting 80% compliance or failing to report may face penalties, with delayed enforcement for small and rural hospitals until July 1, 2028.
• EFFECTIVE DATE: January 1, 2026
• NEXT STEPS FOR HOSPITAL WORKERS: Develop waiver forms and ensure that they are stored electronically, plus develop a system for tracking and reporting waived breaks.
HB 1747: EXPANSION OF PROTECTIONS UNDER THE WASHINGTON FAIR CHANCE ACT
• Prohibits employers from asking about criminal history or conducting background checks until after making a conditional job offer, expanding Washington’s banthe-box law. The law also requires employers to follow detailed procedures when evaluating criminal records, such as providing notice, allowing time for a response, and documenting a legitimate business reason for adverse decisions for applicants and employees, including consideration of listed factors (e.g., seriousness of offense, time elapsed since conviction, etc.). Employers may not take adverse action based on arrests or juvenile records and are barred from retaliating against employees who report violations. When applicants voluntarily disclose criminal history, employers must provide information about the law and the applicant’s rights. The Attorney General’s enforcement authority is expanded, with penalties reaching up to $15,000 per violation.
• EFFECTIVE DATE: July 1, 2026 (employers with 15+ employees) ; January 1, 2027 (employers with 15 or less employees)
• NEXT STEPS FOR EMPLOYERS: Make sure those involved in the hiring process and HR understand when and how such information may be used, factors to be considered, and documentation requirements.
SB 5217: EXPANSION OF PREGNANCY-RELATED ACCOMMODATIONS INCLUDING PAID LACTATION BREAKS
• Expands pregnancy-related workplace accommodations by requiring employers to provide paid break and travel time for expressing breast milk, without requiring employees to use paid leave. These breaks are in addition to regular rest and meal periods. The law broadens the definition of “employer” to include all employers, even those with just one employee, and includes nonprofit religious organizations. It also expands reasonable accommodations to include flexibility for postpartum visits. Enforcement authority shifts to the Department of Labor and Industries, which must attempt resolution before issuing penalties. Additionally, breastfeeding individuals with infants under 24 months may request to delay or be excused from jury duty.
• EFFECTIVE DATE: January 1, 2027
• NEXT STEPS FOR EMPLOYERS: Update policies on pregnancy accommodation and/ or meal and break periods.
HB 1934: NEW PUBLIC RECORDS ACT PROTECTIONS FOR WITNESSES IN AN EMPLOYMENT INVESTIGATION
• Modifies an existing Public Records Act exemption related to investigations of violations of the Washington Law Against Discrimination or other employer policies relating to discrimination, harassment, or retaliation. Previously, RCW 42.56.250 required public employers to redact the names of complainants and witnesses unless they consented to such disclosure. This exemption is now expanded to require the redaction of images, employee agency job titles, email addresses, and phone numbers of complainants and witnesses, and to alter their voices on any audio recorded during the investigation while retaining inflection and tone. However, the name and title of a complainant may not be redacted if the complainant is an elected government official. Witnesses are still required to be given notice and may still give consent to the disclosure of their information.
• EFFECTIVE DATE: July 27, 2025
• NEXT STEPS FOR EMPLOYERS: Public employers should review and update their Public Records Act policies and procedures; train those who respond to Public Records Requests on the new requirements; and notify HR personnel about these changes.
HB 1524: PANIC BUTTONS FOR “ISOLATED EMPLOYEES”
• Expands RCW 49.60.515 to provide additional workplace safety requirements for employers of isolated employees. Adds a definition for “isolated employees” to include any employee who either (i) works in an area where two or more employees are unable to immediately respond to an emergency without being summoned, (ii) spends at least 50% of their time without another employe present, or (iii) is a janitor, security guard, housekeeper, or room service attendant. Requires employers to provide panic buttons to employees that comply with the specifications set forth in the statute; to document the utilization of panic buttons; and to document completion of the mandatory training described in the statute.
• EFFECTIVE DATE: January 1, 2026
• NEXT STEPS FOR EMPLOYERS: Draft or update policies relating to workplace safety for isolated employees. Provide panic buttons to isolated employees as needed, and complete and document mandatory training as described in RCW 49.60.515.
OTHER CHANGES WORTH NOTING
THE DOLE ACT: EXPANSION OF UNIFORMED SERVICES EMPLOYMENT AND RE-EMPLOYMENT RIGHTS ACT OF 1994 (USERRA)
• Expands USERRA by broadening retaliation protections to include any retaliatory act, even those unrelated to employment; increasing liquidated damages with a new minimum award of $50,000 and a lower standard for proving employer misconduct; allowing service members to seek early injunctive relief to stop ongoing or imminent violations; setting a fixed 3% annual prejudgment interest rate on lost wages or benefits; making attorney’s fee awards mandatory for employees who win their cases; and clarifying that career military members, including those in active duty, Reserves, and National Guard, are fully protected under the law.
• EFFECTIVE DATE: January 2, 2025
ONE BIG BEAUTIFUL BILL ACT: EMPLOYEE TAX DEDUCTION FOR QUALIFIED OVERTIME
• Effective for 2025 through 2028, employees will be permitted to deduct up to $12,500 annually in “qualified overtime” compensation (up to $25,000 for joint filers). Qualified overtime is overtime pay that is required under the Fair Labor Standards Act (FLSA), and would not include contractual overtime (e.g., more generous overtime entitlements due under a labor agreement or employer policies). Employees may deduct the por tion of the qualified overtime that exceeds their regular rate of pay (the “half” portion of time-and-a-half compensation) required under the FLSA. Employers will be required to furnish statements to employees showing the total qualified overtime compensation paid during the year. The IRS has indicated that it will provide transition relief for tax
year 2025 for taxpayers claiming the deduction and for employers subject to the new reporting requirements. [See: https://www.irs.gov/newsroom/one-big-beautiful-bill-acttax-deductions-for-working-americans-and-seniors.]
• Next steps for employers: Ensure finance and payroll personnel are aware of the new reporting requirements so they can determine steps necessary to comply with new requirements. Watch for further guidance from the IRS and tax professionals.
• NEXT STEP FOR EMPLOYERS: Ensure finance and payroll personnel are aware of the new reporting requirements so they can determine steps necessary to comply with new requirements. Watch for further guidance from the IRS and tax professionals.
RCW 38.40.060: CLARIFICATION ON PAID MILITARY LEAVE
• The Washington Supreme Court in Bearden v. City of Ocean Shores clarified that, under RCW 38.40.060, all public employees who serve in the military are entitled to 21 days of paid military leave per military fiscal year, regardless of whether their service is active duty or reserve and regardless of the total length of their military service. A federal court had previously held that the paid military leave is only available to cover days that an employee is “scheduled to work”; under that interpretation, an employee on extended military who is removed from the work schedule could be denied leave. Since this was a question of question of Washington law, the matter was submitted to the Washington Supreme Court for determination. The State Supreme Court held that while the statute specifies that military leave is to be charged only on days an employee is “scheduled to work,” this does not limit the employee’s entitlement to the 21 days of paid leave,, nor does it exclude employees from eligibility simply because they were not scheduled to work on certain days of their military service
• EFFECTIVE DATE: June 26, 2025
• NEXT STEP FOR EMPLOYERS: Public employers must ensure that employees on military leave, including those who have been removed from the work schedule due to long-term leave, receive their entitlement to 21 days of paid leave.
SPOKANE ORDINANCE C36666: “BAN THE ADDRESS” REQUIREMENTS FOR JOB APPLICATIONS
• In April 2025, the City of Spokane passed a first-in-the-nation ordinance that amends Spokane’s Fair Chance Hiring Ordinance to address discrimination against unhoused individuals in the job-selection process. Spokane employers are now prohibited from discriminating against an applicant based on the address they provide during the application process, and may not disqualify or reject an applicant solely on the basis that they are “homeless,” which is defined as lacking a fixed or regular residence, or living on the street, in a shelter, or in a temporary residence. While employers may provide an opportunity for an applicant to give their mailing address or contact information as part of the application process, employers may not ask about an applicant’s housing status or residence history until after granting a provisional offer of employment.
• EFFECTIVE DATE: July 27, 2025
• NEXT STEP FOR EMPLOYERS: For employers who have employees located in the City of Spokane, update your job application forms and anti-discrimination policies to inform applicants and employees that they cannot be discriminated against on the basis that they are unhoused, live in a shelter, or lack a fixed or regular address. For employers located outside of the City of Spokane, be on the lookout for similar legislation in your city or county in the coming years.
This information is provided for general knowledge and is not a substitute for professional legal advice.
For legal advice, please contact the Labor & Employment attorneys at Summit Law Group.
