Washington’s 2026 legislative session introduced a broad set of employment law changes that will have real, day-to-day implications for employers across the state. These updates reflect an ongoing shift toward increased worker protections, greater transparency, and expanded regulatory oversight. For employers, particularly in industries like retail, where workforce size, turnover, and compliance complexity are high, understanding not just what has changed but how and when to implement those changes will be critical.
The legislation outlined below highlights the most relevant updates for members of WR, with a focus on areas that may require operational adjustments, policy updates, or additional communication with employees.
General Employment Law
- Eliminate Noncompete Agreements (HB 1155) – This legislation voids all noncompetition covenants prospectively and retroactively. By Oct 1, 2027, employers are required to notify all parties with such agreements that they are now void.
- Immigrant Worker Protection Act (2SHB 2105) – All employers must notify their workers within five days of an I-9 inspection notice or inspection results. Enforcement is effective Oct 1, 2026, by the Attorney General or via civil action.
- Expand Attorney General’s Pre-Civil Investigation Authority (ESSB 5925) – Effective Jun 11, 2026, the Attorney General’s pre-civil investigative authority is expanded to cover wages and payments to workers, and the WA Law Against Discrimination.
- Pregnancy Accommodation Complaints Exempt from Public Records Act (SSB 6014) – Effective Jun 11, 2026, the identity of pregnancy accommodation complainants is exempt from the Public Records Act, and the written certification requirement no longer applies to accommodations related to lifting over 17 pounds.
- Prohibits Implanting Microchipping Employees (HB 2303) – This legislation prohibits an employer from requesting, requiring, or coercing an employee to have a microchip implanted in the employee for any reason.
- Establish Labor Standards for Domestic Workers (SHB 2355) – Effective July 1, 2026, employees or independent contractors who work in a private residence for at least four hours a month will be protected under the Minimum Wage Act, other protections that were previously exempt for some of them, and the Washington Law Against Discrimination.
- Childcare Standards Board (2SHB 1128) – By Sep 1, 2026, the Governor shall appoint a seven-person Childcare Standards Board within Labor & Industries. The Board shall convene to produce a series of reports with recommendations related to childcare worker staffing, recruitment, retention, and staffing ratios.
- Unpaid Wage Recovery (2SHB 2479) – Creates a Wage Recovery Program in L&I to allow discretionary disbursement of funds to unpaid low-wage employees before a determination is made to address immediate economic harm for wages owed.
- Allow Discretion to Prioritize Wage Enforcement (ESB 6058) – Instead of investigating every wage claim, this legislation allows L&I to establish a transparent written process that prioritizes complaints based on factors such as severity and probability of retaliation.
Paid Leave, Unemployment Insurance, and Workers’ Compensation
- Paid Leave Premium Contribution Switch (2SHB 2345) – Effective Jun 11, 2026, the premium contribution will switch between employers and workers to minimize the tax liability on employers and workers due to a 2025 IRS Guidance. The share ratio between employers and workers remains the same.
- Paid Leave Actuarial Rating (2SSB 5292) – Effective Jan 1, 2028, the statutory rate-setting formula is replaced by actuarial rate-setting while keeping the 1.2% statutory rate cap.
- Paid Leave Solvency & Integrity Evaluation Report (ESSB 5998 – Sec. 232 (27)) – Within the operating budget, the Legislature required the Employment Security Department to gather input from the Paid Leave Advisory Committee and deliver an evaluation report with recommendations related to the program’s solvency and integrity by November 1, 2026.
- Access UI for Voluntary Layoff (HB 2264) – Effective Jun 11, 2026, a worker who voluntarily participates in an employer-initiated layoff or reduction plan retains the right to access unemployment insurance benefits so long as their termination is the result of the plan.
- Waiving Minor Error on UI Employer Reports (SSB 5874) – The Employment Security Department Commissioner may waive minor or insignificant reporting errors on reports requiring the standard occupational classification or job title of each worker.
- Notice to Striking Workers to Repay UI Benefits (SB 6134) – Striking workers who receive unemployment (UI) benefits will be issued a notice that explains their legal obligation to repay UI benefits if backpay wages are later received.
- Workers’ Comp Out of Network Provider Access & More (E2SSB 5847) – This legislation opens the option to go outside of the medical guideline and the medical providers’ network under certain circumstances. It also establishes standards for utilization review and adds penalties to employers who mandate workers to use specific medical providers. Continued treatment is allowed for certain closed claims.
- Pilot program for posttraumatic stress disorder treatment and research (SHB 2405) – A pilot program is established in the Department of Labor and Industries to allow workers’ compensation coverage of post-traumatic stress disorder treatment up to a specified number of sessions before claim adjudication and after claim closure.
- Workers’ Comp Rate Transparency (SB 6136) – In addition to publishing the annual proposed premium rates, L&I must publish the actuarially indicated rate for each workers’ compensation risk classification as part of its proposed premium rates for the upcoming year.
- Modernize L&I Communication Across Multiple Programs (SSB 6039) – Specified notice and communication provisions may be sent digitally across multiple L&I administered programs, but L&I must provide the affected party the option to receive communications through a nonelectronic method.
