The Washington State Employment Security Department (ESD) has released draft rule language to implement Engrossed Substitute SB (ESSB) 5525, passed during the 2025 legislative session. The legislation is designed to support workers facing unemployment caused by business closures or mass layoffs.
Under ESSB 5525, employers with 50 or more full-time employees must provide 60 days’ written notice before initiating a business closure or mass layoff. Notification must be sent to both ESD and the affected employees, or their bargaining representatives if applicable.
Employers who do not comply with these notice requirements may face civil penalties.
The draft rules clarify how employee information submitted to ESD will be used. According to the department, this information will be applied strictly for purposes of administering and providing services under the Employment Security Act.
Both employer and employee communities are concerned that ESSB 5525 did not include a provision to exempt employee information shared with ESD from the Public Disclosure Act. This will require the Legislature to act in the next session.
Stakeholders are invited to review the draft rules and provide comments by October 10, 2025. Details are available on ESD’s rulemaking homepage.
