SB 5525 — Concerning employment loss due to businesses closing or mass layoffs.

ENGROSSEDS-0606.2 SUBSTITUTE SENATE BILL 5525 State of Washington 69th Legislature 2025 Regular Session By Senate Labor & Commerce (originally sponsored by Senators Cleveland, Saldaña, Hasegawa, Riccelli, Dhingra, Conway, Nobles, and Valdez)Valdez READRead FIRSTfirst TIMEtime 02/18/25.01/27/25.

Referred to Committee on Labor & Commerce.

1 ESSBSB 5525 units that will result in an employment loss for 50 or more employees, excluding part-time employees.

"Employer"However, doesfor notthe includepurposes theof statesection or6 anyof politicalthis subdivisionact thereof,only, including"employer" anymeans unita ofperson localwho government.employs 100 or more employees in this state, excluding part-time employees.

2 ESSBSB 5525 NEW SECTION.

and (d) The job titles of positions to be affected and the names of the employees currently holding the affected jobs.

The notice to the department must also include the addresses of the affected employees;employees.

and p.

3 ESSBSB 5525 (e)(3) WhetherThe theemployer massmust layoffprovide oradditional businessnotice closingof is the resultdate of, or willschedule resultof in,dates theof relocationa planned business closing or contractingmass outlayoff ofextended beyond the employer'sdate operationsof orany period announced in the employees'original positions.notice.

(3) The employer must provide additional notice of the date or schedule of dates of a planned business closing or mass layoff extended beyond the date of any period announced in the original notice.

or (c) The mass layoff or business closing is due to a natural disaster, such as a flood, earthquake, drought, storm, tornado, or similar effects of nature;nature.

or (d) The mass layoff is the result of:

(i) The completion of a construction project, and the affected employees were hired with the understanding that their employment was limited to the duration of the construction project;

or (ii) The completion of a multiemployer construction project employing persons who are subject to a full union referral or dispatch system.

(3) The department may not determine an exception under this section applies unless the employer meets the documentation and other p.requirements established by the department pursuant to section 7 of this act.

4 ESSB 5525 requirements established by the department pursuant to section 7 of this act.

(i)p. The average regular rate of compensation received by the employee during the last three years of the employee's employment;

4 SB 5525 (i) The average regular rate of compensation received by the employee during the last three years of the employee's employment;

(b) If the court determines that an employer conducted a reasonable investigation in good faith and had reasonable grounds to p.believe that its conduct was not a violation of this chapter, the court may reduce the amount of any penalty it would otherwise impose against the employer under this chapter.

5 ESSB 5525 believe that its conduct was not a violation of this chapter, the court may reduce the amount of any penalty it would otherwise impose against the employer under this chapter.

(1) An employer who fails to give the notice required by section 2 of this act to the department is subject to a civil penalty of not more than $500 for each day of the employer'sp. violation.

5 SB 5525 employer's violation.

Except(1) inWhen a mass layoff or business closing occurs, the casesemployer exemptedmust underpay sectionin 3(1)full (b)for throughthe (d)continuation of thisexisting act,group anhealth employerinsurance, mayno notmatter includewhere anthe group policy was written, issued, or delivered, for each employee inexperiencing anemployment orderloss ofas a result of the business closing or mass layoff and their dependents, if covered under the employeegroup ispolicy, currentlyfrom onthe paiddate familyof the business closing or medicalemployee's leavelayoff underfor Titlea 50Aperiod RCW.of 120 days or until the employee becomes eligible for other group coverage, whichever is less.

(2) The department may investigate alleged violations of this section and may, upon a finding that an employer has violated this section, issue a notice of violation and order a payment to the employee equal to the value of the cost of any benefits to which the employee would have been entitled, including the cost of any medical expenses incurred by the employee that would have been covered under an employee benefit plan.

However, the department may not investigate an alleged violation occurring more than three years prior.

(3)(a) An employer may appeal a notice of violation or order of payment issued by the department by filing a notice of appeal with the commissioner within 30 days of the department's issuance of the notice of violation.

A notice of violation or order of payment not appealed within 30 days is final and binding, and not subject to further appeal.

(b) A notice of appeal filed with the commissioner under this section stays the effectiveness of the notice of violation or order of payment pending final review of the appeal by the commissioner as provided for in chapter 34.05 RCW.

p.

6 SB 5525 (c) Upon receipt of a notice of appeal, the commissioner shall assign the hearing to an administrative law judge of the office of administrative hearings to conduct the hearing and issue an initial order.

The hearing and review procedures must be conducted in accordance with chapter 34.05 RCW, and the standard of review by the administrative law judge must be de novo.

Any party who seeks to challenge an initial order shall file a petition for administrative review with the commissioner within 30 days after service of the initial order.

The commissioner shall conduct an administrative review in accordance with chapter 34.05 RCW.

(d) The commissioner shall issue all final orders after appeal of the initial order.

The final order of the commissioner is subject to judicial review in accordance with chapter 34.05 RCW.

(e) Orders that are not appealed within the time period specified in this section and chapter 34.05 RCW are final and binding, and not subject to further appeal.

If any provision of this act or its application to any person or circumstance is held invalid, the p.remainder of the act or the application of the provision to other persons or circumstances is not affected.

6 ESSB 5525 remainder of the act or the application of the provision to other persons or circumstances is not affected.

7 ESSBSB 5525