wa-law.org > bill > 2025-26 > HB 1773 > Substitute Bill
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise. In addition, the definitions in chapter 50.04 RCW apply, except as otherwise provided in this section. To the extent such definitions in chapter 50.04 RCW refer to "benefits" and "claimant," for the purposes of administering the wage replacement program in this chapter those terms mean the same as "payments" and "applicant" as defined in this section.
"Applicant" means an individual applying for payments under this chapter.
"Department" means the employment security department.
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"Employment" has the meaning provided in RCW 50.04.100, subject to the provisions of RCW 50.04.110, 50.04.120 through 50.04.205, 50.04.210 through 50.04.280, and 50.44.040. The provisions of RCW 50.04.206 do not apply to the definition of "employment" for this chapter.
"Employment" does not include service that is performed by a nonresident for the period the nonresident is temporarily present in the United States as a nonimmigrant under subparagraph (F), (H)(ii), (H)(iii), or (J) of 8 U.S.C. Sec. 1101(a)(15) of the immigration and nationality act, as amended as of the effective date of this section, and that is performed to carry out the purpose specified in the applicable subparagraph of the immigration and nationality act.
"Payment" or "payments" means the amounts payable to an applicant, as provided in this chapter with respect to the applicant's unemployment.
"Payment year" has the same meaning as "benefit year" under RCW 50.04.030.
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"Resident of the state of Washington" means an applicant who takes actions indicating they intend to live in Washington state on more than a temporary or transient basis throughout the duration of receiving payments under this chapter. Under this chapter, an applicant is a resident of the state of Washington if the applicant:
Maintains a residence in Washington for personal use with a utility bill showing their full name and Washington state address;
Lives in a motor home or vessel that is not permanently attached to any real property if the applicant previously lived in this state and does not have a permanent residence in any other state;
Is attending school in this state and paying tuition as a Washington resident, is a custodial parent with a child attending a public school in this state, or has correspondence from a school in this state showing their full name and Washington state address;
Has a Washington state identification card showing their full name and Washington state address;
Has a current library card issued in this state;
Has correspondence from a community or faith-based organization in this state showing their full name and Washington state address; or
Has a medical document showing their full name and Washington state address.
"Third-party administrator" means an entity with which the department contracts to administer payments to eligible individuals under this chapter.
"Week of unemployment" means any week during which an applicant, including a self-employed applicant:
Performs no services and with respect to which no remuneration is payable to the applicant; or
Performs less than full-time work if the remuneration payable to the applicant with respect to such week is less than one and one-third times the individual's weekly payment amount plus $5.00.
The Washington wage replacement account is created in the custody of the state treasurer. Revenues to the account must consist of appropriations and transfers by the legislature and all other funding directed for deposit into the account. Expenditures from the account may be used only for providing payments under this chapter to eligible and qualified applicants, contracting with community-based organizations to notify individuals who may be eligible for payments under this chapter, administration of the advisory committee of this act, the department's administrative costs, and third-party administrators under this chapter. The account is subject to the allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.
By July 1, 2026, the department shall select a third-party administrator to administer and implement the wage replacement program under this chapter.
At a minimum, the third-party administrator must have experience building and operating financial benefit systems that are proven to be accessible and responsive to the target population and demonstrated mechanisms to prevent disclosure of confidential or private information. The department may adopt rules for selecting and replacing the third-party administrator.
Each quarter, to the extent allowed by the United States department of labor, employment and training administration, the department shall allocate the money in the wage replacement account in section 2 of this act to one or more third-party administrators for the purpose of providing payments to eligible and qualified applicants and for contracting with community-based organizations to notify individuals who may be eligible for this program.
The third-party administrator selected under this section shall, within one year after the contract is awarded after the effective date of this section:
Contract with one or more community-based organizations to provide outreach to unemployed individuals who may be eligible for payments under this chapter;
Screen each applicant to determine if the applicant is eligible for payments;
Make payments to eligible applicants; and
Establish internal administrative processes for receiving and reviewing applications, making payments, and processing appeals regarding payment denials, suspensions, or terminations.
The department must appoint an advisory committee to review issues and topics of interest related to this chapter.
The committee is composed of 11 members:
Three members representing immigrants' interests;
Two members representing workers' interests in unemployment, each of whom must be appointed from a list of names submitted by a recognized statewide organization of employees;
Two members representing employers' interests in unemployment, each of whom must be appointed from a list of names submitted by a recognized statewide organization of employers;
Three ex officio members, without a vote, representing the state commission on African American affairs, the state commission on Hispanic affairs, and the state commission on Asian Pacific American affairs; and
One ex officio member, without a vote, representing the department and who will serve as the chair.
The advisory committee must provide comment on implementation of this chapter, utilization of the program under this chapter, selection and performance of the third-party administrator, and study issues the advisory committee determines to require its consideration.
The members must serve without compensation but are eligible for reimbursement of travel expenses as provided in RCW 43.03.050 and 43.03.060, and for stipends provided by the department under RCW 43.03.220. All expenses of the advisory committee must be paid by the Washington wage replacement account in section 2 of this act.
The department must comply with the requirements of RCW 43.18A.020 in making appointments provided in this section. The department must provide the report required in RCW 43.18A.020.
Beginning January 1, 2027, a person may apply for payments under this chapter by filing an application with the third-party administrator. To be eligible for payments under this chapter, the applicant must:
Be ineligible for benefits under Title 50 RCW based solely on not being authorized to work in the United States at the time the work was performed or during the week for which the applicant is seeking payments under this chapter;
Be a resident of the state of Washington and have sufficient photographic identification confirming their identity;
Have worked 680 hours in employment in their base year;
Be unemployed through no fault of their own; and
Have been unemployed for a waiting period of one week.
The third-party administrator shall request information and documentation for verifying eligibility under this section. The third-party administrator may request additional information and documentation if the applicant's hours or wages are not verified by employer reports provided by the applicant to the third-party administrator. If, after the third-party administrator's request, the applicant fails to provide sufficient information or documentation, the applicant may be denied payments under this chapter.
The third-party administrator may contract with a community-based organization to assist applicants in gathering information or documentation required under this section. The community-based organization may not communicate with employers regarding applicant eligibility.
The third-party administrator must make the final decision on whether the applicant is eligible for payments under this chapter. The third-party administrator may utilize information or documentation provided by the applicant or any third-party, community-based organization contracted under this section.
If the third-party administrator determines the applicant is eligible for payments under this chapter, the applicant may qualify for weekly payments by self-attesting that the applicant meets the following requirements for each week of unemployment in which the applicant is applying for payments under this chapter:
The applicant must be actively seeking work in any trade, occupation, profession, or business for which the applicant is reasonably fitted; and
The applicant must report to the third-party administrator any wages or remuneration the applicant received.
For the purposes of this section, "actively seeking work" means participating in job search, educational, or professional development activities.
The third-party administrator may take reasonable steps to confirm the applicant's job search, educational, or professional development activities, and current unemployment status.
An applicant who is eligible and qualified for payments under this chapter must receive a weekly payment amount equal to the weekly benefit amount calculated in accordance with RCW 50.20.120 by the third-party administrator, subject to the availability of funds for this purpose and other conditions established under this chapter.
Payments are payable to an eligible and qualified applicant during the applicant's payment year in a maximum amount equal to the lesser of 26 times the weekly payment amount, as determined under subsection (1) of this section, or one-third of the applicant's base year wages.
If waiting period credit or the payment of amounts under this chapter are denied to any applicant for any week or weeks, the applicant must be promptly issued written notice of the denial and reasons for such denial by the third-party administrator
.
An applicant is disqualified for payments under this chapter:
If the third-party administrator finds that the applicant:
Left the applicant's most recent work voluntarily without good cause, for which the third-party administrator may rely on the permitted good cause circumstances under RCW 50.20.050(2);
Was discharged for misconduct or gross misconduct connected with the applicant's most recent work; or
Knowingly made a false statement or representation involving a material fact or knowingly failed to report a material fact and, as a result, has obtained or attempted to obtain any payments under this chapter; or
For any week an applicant has received, is receiving, or will receive compensation, under:
Chapters 50.01 through 50.36 RCW;
Title 50A RCW;
RCW 51.32.060;
RCW 51.32.090; or
Any other applicable federal unemployment compensation, industrial insurance, or state disability insurance laws.
Cessation of operations by an employer for the purpose of granting vacations, whether by union contract or other reasons, must not be construed to be a voluntary quit or a voluntary unemployment on the part of the applicant.
Payments under this chapter may only be distributed to an eligible applicant if moneys are available for this purpose in the funds distributed to the third-party administrator from the Washington wage replacement account in section 2 of this act.
If information provided to the department or the third-party administrator by another governmental agency is held private and confidential by state or federal laws, neither the department nor the third-party administrator may release such information.
Information provided to the department or the third-party administrator by another governmental entity conditioned upon the privacy and confidentiality is to be held private and confidential according to the agreement between the department or the third-party administrator and other governmental entity.
Any information or records concerning an applicant or employing unit obtained by the department or the third-party administrator pursuant to the administration of this chapter must be private and confidential, except as otherwise provided in this chapter. This chapter does not create a rule of evidence. Information or records may only be released by the department or the third-party administrator when the release is:
To the person who is the subject of such records or an authorized representative;
Necessary to comply with a lawful court order, judicial warrant signed by a judge appointed pursuant to Article III of the United States Constitution, or judicial subpoena for specific records issued pursuant to the criminal procedure law or the civil practice law and rules; or
Disclosed in a manner that could not be used to determine the identities of the applicants or employers to whom the data pertains, alone or in combination with other data.
In administering the program under this chapter, the department and the third-party administrator are prohibited from taking any of the following actions:
Soliciting from the applicant, orally or in written form, an applicant's nationality, race, ethnicity, or place of birth;
Indicating in its records which documents the applicant used to prove the applicant's age or identity;
Compelling an applicant to admit in writing whether the applicant has proof of lawful presence in the United States or to explain why the applicant is ineligible for a social security number;
Contacting an applicant's current, former, or prospective employers, including, but not limited to, for the purposes of verifying employment status for the program; and
Soliciting or otherwise attempting to ascertain an applicant's immigration or citizenship status, except as necessary for the third-party administrator to determine whether an applicant is excluded from benefits under Title 50 RCW and eligible for payments under this chapter.
The third-party administrator must destroy all records containing information that were provided by an applicant or collected by the department to verify eligibility for the program within 15 days of an applicant no longer using the program.
As provided in RCW 42.56.410, any information under this chapter is not a public record and must not be disclosed or otherwise made accessible in response to any request for records except:
To the person who is the subject of such records or an authorized representative;
Where necessary to comply with a lawful court order, judicial warrant signed by a judge appointed pursuant to Article III of the United States Constitution, or judicial subpoena for individual records issued pursuant to the criminal procedure law or the civil practice law and rules; or
If disclosed in a manner that could not be used to determine the identities of the applicant or employers to whom the data pertains, alone or in combination with other data.
For the purposes of this section, whenever a lawful court order, judicial warrant, or judicial subpoena for individual records properly issued pursuant to the criminal procedure law or the civil practice law and rules is presented to a court, only those records, documents, and information specifically sought by such court order, warrant, or subpoena may be disclosed.
Notwithstanding any other law, information and records containing information that are collected or obtained by the state, any state agency, or any subdivision of the state, including agents of the state universities and community colleges, in addition to any private persons contracted to administer public services or programs, must only be collected, used, and retained for the purpose of assessing eligibility for and providing those public services and programs created by this chapter.
No information collected under this chapter may be used for purposes of investigating, locating, or apprehending applicants for immigration-related violations including, but not exclusive to, queries or inquiries under 8 U.S.C. Secs. 1324, 1325, and 1326.
The third-party administrator must create a process by which applicants can notify the administrator of payment errors and for collection and forgiveness of such overpayments.
Any assignment, pledge, or encumbrance of any right to payments under this chapter which are or may become due or payable under this chapter must be void. Such rights to payments under this chapter must be exempt from levy, execution, attachment, or any other remedy whatsoever provided for the collection of debts. Payments under this chapter received by any individual, so long as they are not commingled with other funds of the recipient, must be exempt from any remedy whatsoever for collection of all debts except debts incurred for necessaries furnished to such individual or their spouse or dependents during the time when such individual was unemployed. Any waiver of any exemption provided for in this section must be void. Any agreement by an individual to waive, release, or commute their rights to payments or any other rights under this chapter must be void.
The department may adopt rules as necessary to implement this chapter.
Nothing in this title may be construed to create:
Any entitlement or right to services or payments; or
A private right of action or claim on the part of any individual or applicant against the department or the third-party administrator.
The legislature reserves the right to amend or repeal all or any part of this chapter at any time; and there must be no vested private right of any kind against such amendment or repeal. All the rights, privileges or immunities conferred by this chapter or by acts done pursuant thereto exist subject to the power of the legislature to amend or repeal this chapter at any time.
The following information related to employment security is exempt from disclosure under this chapter:
(1) The contribution rate for each employer subject to contributions under RCW 50.24.010 shall be the sum of the array calculation factor rate and the graduated social cost factor rate determined under this subsection, and the solvency surcharge determined under RCW 50.29.041, if any.
Except for rate years 2021, 2022, 2023, 2024, and 2025, each employer subject to contributions under RCW 50.24.010 shall pay a solvency surcharge determined as follows:
This section shall apply to employers for a rate year immediately following a cut-off date only if, on the cut-off date, the balance in the unemployment compensation fund is determined by the commissioner to be an amount that will provide fewer than seven months of unemployment benefits.
The solvency surcharge shall be the lowest rate necessary, as determined by the commissioner, but not more than two-tenths of one percent, to provide revenue during the applicable rate year that will fund unemployment benefits for the number of months that is the difference between nine months and the number of months for which the balance in the unemployment compensation fund on the cut-off date will provide benefits.
The basis for determining the number of months of unemployment benefits shall be the same basis used in RCW 50.29.025(1)(b)(i)(B).
Funds collected under this subsection (1) shall be deposited into the unemployment compensation fund.
Each employer subject to contributions under RCW 50.24.010 shall pay a wage replacement program surcharge determined as follows:
For rate years 2026 and 2027, the rate shall be one one-hundredths of one percent;
For rate years beginning in 2028 and thereafter, the commissioner shall determine the wage replacement program surcharge at the lowest rate necessary to provide revenue during the applicable rate year that will fund administration and payments of the program in chapter 50C.--- RCW (the new chapter created in section 22 of this act); however, the total combined rate of (b) of this subsection (2) and the rate provided in RCW 50.24.014(1)(a) may not exceed eight one-hundredths of one percent;
Funds collected under this subsection (2) must be deposited into the Washington wage replacement account created in section 2 of this act.
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A separate and identifiable account to provide for the financing of special programs to assist the unemployed is established in the administrative contingency fund. All money in this account shall be expended solely for the purposes of this title and for no other purposes whatsoever, except as provided in subsection (4) of this section. Contributions to this account shall accrue and become payable by each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, at a basic rate of one one-hundredths of one percent. The amount of wages subject to tax shall be determined under RCW 50.24.010.
A separate and identifiable account is established in the administrative contingency fund for financing the employment security department's administrative costs under RCW 50.22.150 and 50.22.155 and the costs under RCW 50.22.150(11) and 50.22.155 (1)(m) and (2)(m). All money in this account shall be expended solely for the purposes of this title and for no other purposes whatsoever. Contributions to this account shall accrue and become payable by each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, those employers who are required to make payments in lieu of contributions, those employers described under RCW 50.29.025(1)(d), and those qualified employers assigned rate class 20 or rate class 40, as applicable, under RCW 50.29.025, at a basic rate of one one-hundredth of one percent. The amount of wages subject to tax shall be determined under RCW 50.24.010. Any amount of contributions payable under this subsection (1)(b) that exceeds the amount that would have been collected at a rate of four one-thousandths of one percent must be deposited in the account created in (a) of this subsection.
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Contributions under this section shall become due and be paid by each employer under rules as the commissioner may prescribe, and shall not be deducted, in whole or in part, from the remuneration of individuals in the employ of the employer. Any deduction in violation of this section is unlawful.
In the payment of any contributions under this section, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.
If the commissioner determines that federal funding has been increased to provide financing for the services specified in chapter 50.62 RCW, the commissioner shall direct that collection of contributions under this section be terminated on the following January 1st.
During the 2023-2025 fiscal biennium, moneys in the account in subsection (1)(a) of this section may be appropriated for poverty reduction programs that coordinate employment, training, education, and other existing systems designed to assist low-income individuals attain self-sufficiency.
If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this act. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.