SB 5874 — Concerning employers' information reporting for purposes of unemployment compensation.

S-3925.1S-3544.1 SUBSTITUTE SENATE BILL 5874 State of Washington 69th Legislature 2026 Regular Session By Senate Labor & Commerce (originally sponsored by Senator MacEwen)MacEwen READPrefiled FIRST12/12/25. TIME 01/26/26.

and amending RCW 50.12.070 and 50.12.220.

RCW 50.12.070 and 2023 c 256 s 1 are each amended to read as follows:

(1)(a) Each employing unit shall keep true and accurate work records, containing such information as the commissioner may prescribe.

Such records shall be open to inspection and be subject to being copied by the commissioner or his or her authorized representatives at any reasonable time and as often as may be necessary.

The commissioner may require from any employing unit any sworn or unsworn reports with respect to persons employed by it, which he or she deems necessary for the effective administration of this title.

(b) An employer who contracts with another person or entity for work subject to chapter 18.27 or 19.28 RCW shall obtain and preserve a record of the unified business identifier account number for and compensation paid to the person or entity performing the work.

In addition to the penalty in subsection (3) of this section, failure to obtain or maintain the record is subject to RCW 39.06.010.

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1 SB 5874 (2)(a)(i) Each employer shall register with the department and obtain an employment security account number.

Each employer shall make periodic reports at such intervals as the commissioner may by regulation prescribe, setting forth the remuneration paid for employment to workers in its employ, the full names and social security numbers of all such workers, the standard occupational classification or job title of each worker, and the total hours worked by each worker and such other information as the commissioner may by regulation prescribe.

((Reporting the standard occupational classification or job title of each worker is optional for employers until October 1, 2022)) The department must allow an employer to amend a periodic report filed before its due date up until the report's due date without penalty.

(ii) A federally recognized tribe may elect to report the standard occupational classifications or job titles of workers.

If a federally recognized tribe elects to report standard occupational classifications or job titles, it retains the option to opt out of reporting at any time for any reason it deems necessary.

The department shall adopt rules to implement this subsection (2)(a)(ii).

(b) If the employing unit fails or has failed to report the number of hours in a reporting period for which a worker worked, such number will be computed by the commissioner and given the same force and effect as if it had been reported by the employing unit.

In computing the number of such hours worked, the total wages for the reporting period, as reported by the employing unit, shall be divided by the dollar amount of the state's minimum wage in effect for such reporting period and the quotient, disregarding any remainder, shall be credited to the worker:

PROVIDED, That although the computation so made will not be subject to appeal by the employing unit, monetary entitlement may be redetermined upon request if the department is provided with credible evidence of the actual hours worked.

Benefits paid using computed hours are not considered an overpayment and are not subject to collections when the correction of computed hours results in an invalid or reduced claim;

however:

(i) A contribution paying employer who fails to report the number of hours worked will have its experience rating account charged for all benefits paid that are based on hours computed under this subsection;

and (ii) An employer who reimburses the trust fund for benefits paid to workers and fails to report the number of hours worked shall p.

2 SB 5874 reimburse the trust fund for all benefits paid that are based on hours computed under this subsection.

(3) Any employer who fails to keep and preserve records required by this section shall be subject to a penalty determined by the commissioner but not to exceed ((two hundred fifty dollars)) $250 or ((two hundred)) 200 percent of the quarterly tax for each offense, whichever is greater.

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and for the fourth p.occurrence and for each occurrence thereafter, the penalty is ((two hundred fifty dollars)) $250.

1 SSB 5874 occurrence and for each occurrence thereafter, the penalty is ((two hundred fifty dollars)) $250.

For purposes of this section, "minor or insignificant reporting errors" includes, but is not limited to, inadvertentp. errors caused by the failure of any electronic software to properly produce a tax and wage report with the standard occupational classification or job title of each worker.

3 SB 5874 inadvertent errors caused by the failure of any electronic software to properly produce a tax and wage report with the standard occupational classification or job title of each worker.

No penalty so added shall be less than ((ten p.dollars)) $10.

2 SSB 5874 dollars)) $10.

(6) Where adequate information has been furnished to the department and the department has failed to act or has advised the employer of no liability or inability to decide the issue, penalties shallp. be waived by the commissioner.

4 SB 5874 shall be waived by the commissioner.

35 SSBSB 5874