SHB 1773
In CommitteeHouse
Wage replacement
Creating a wage replacement program for certain Washington workers excluded from unemployment insurance.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill establishes a new state wage replacement program for Washington workers—especially immigrants—who are excluded from traditional unemployment insurance due to immigration status. It provides up to 26 weeks of weekly benefits based on prior earnings, funded by employer surcharges and state appropriations, and administered through a third-party contractor with strong privacy safeguards.
- Creates a new wage replacement program for workers who are unemployed and ineligible for traditional unemployment insurance—especially immigrants without work authorization or with expired/pending status.
- Establishes eligibility requirements: must be a Washington resident, have worked 680 hours or earned wages equal to 680 × state minimum wage in the base year, be unemployed through no fault of their own, and serve a one-week waiting period.
- Sets benefit amounts equal to those calculated under existing unemployment insurance rules (RCW 50.20.120), with a maximum of 26 weeks or one-third of base-year wages, whichever is less.
- Requires the Employment Security Department (ESD) to contract with a third-party administrator by July 1, 2026, and appoint an 11-member advisory committee (including immigrant, worker, and employer representatives) to oversee implementation.
- Includes strong privacy and confidentiality protections, including a ban on asking about immigration status, and prohibits use of program data for immigration enforcement.
- Bars benefit recipients from receiving other unemployment, disability, or workers’ compensation benefits simultaneously, and disqualifies claimants for voluntary quit, misconduct, or fraud.
Who is affected
- Immigrant workers excluded from unemployment insurance — Workers who are not eligible for traditional unemployment insurance—particularly those without work authorization, those with expired or pending work authorization, and those who recently gained legal status—can now apply for weekly wage replacement benefits if they meet other eligibility criteria.
- Third-party administrators — Third-party administrators will be contracted to manage application intake, eligibility determinations, benefit payments, and appeals for the new program.
- Community-based organizations — Community-based organizations will be contracted to conduct outreach, assist applicants in gathering documentation, and help ensure program access for underserved populations.
- Employers — Employers in Washington will pay a new surcharge (starting at 0.01% in 2026–2027) to fund the wage replacement program, in addition to existing unemployment insurance taxes.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The program provides critical income support to workers excluded from traditional unemployment insurance—especially undocumented and recently naturalized immigrants—reducing poverty and economic instability during layoffs, which stabilizes local economies and reduces reliance on emergency assistance programs; this is a direct, targeted safety net expansion for a historically excluded group.
FinancialPeopleRef: Sec. 1(3); Sec. 3; Sec. 5–8The explicit ban on asking about immigration status and prohibition on using program data for immigration enforcement (Sec. 14(6)) significantly strengthens trust and access for immigrant communities, reducing fear of deportation and enabling broader participation—this is a major civil rights and public health protection for a historically marginalized group.
Rights & LibertiesPeopleRef: Sec. 14(6); Sec. 13; Sec. 12The bill’s requirement that third-party administrators contract with community-based organizations to assist with outreach and documentation (Sec. 6(4)) and its ban on employer contact for verification (Sec. 14(1)(d)) help reduce barriers to access and protect workers from employer retaliation or coercion, improving equity and program integrity.
Public SafetyPeopleRef: Sec. 6(2)(a); Sec. 6(4); Sec. 14(1)(d)The bill includes strong consumer protections: benefits are exempt from debt collection, assignment, or garnishment (Sec. 16), and the state is not liable for overpayments beyond program funds (Sec. 11(2)), reducing financial risk for vulnerable claimants and preventing predatory collection practices.
FinancialPeopleRef: Sec. 16; Sec. 11(2)The bill acknowledges that employers have already contributed billions in payroll taxes on undocumented workers (Sec. 1(4)), and the surcharge is modest and phased in (0.01% initially), meaning the fiscal burden is limited and aligned with prior contributions—this frames the program as a fair reallocation of existing employer-paid costs rather than a new tax.
FinancialPeopleRef: Sec. 1(4); Sec. 21(2)(a)
Potential Concerns (5)
The bill creates a new administrative pathway for verifying employment status and unemployment without requiring immigration status disclosure, but the requirement to self-attest job search activities and the third-party administrator’s authority to verify compliance may create confusion and risk of misclassification or denial of benefits for vulnerable workers who may not understand complex reporting requirements or fear interacting with any government entity.
Public SafetyPeopleRef: Sec. 6(2)(c); Sec. 7(1)(a)Disqualification rules for voluntary quit, misconduct, or fraud are broadly defined and could disproportionately affect low-wage, precarious workers (e.g., those forced to leave jobs due to unsafe conditions, wage theft, or caregiving emergencies) who may not meet narrow legal definitions of “good cause,” increasing economic insecurity and potential hardship for already vulnerable populations.
Public SafetyPeopleRef: Sec. 10(1)(a)(i)-(iii); Sec. 10(1)(b)While the bill includes strong privacy protections, the requirement that third-party administrators verify eligibility through employer reports or additional documentation (Sec. 6(2)(b), (c)) creates a risk that employers could indirectly learn about workers’ immigration status or program participation—especially in small workplaces or tight-knit industries—potentially chilling program uptake or exposing workers to retaliation, despite legal prohibitions.
Rights & LibertiesPeopleRef: Sec. 12–14; Sec. 21(2)(c)The wage replacement surcharge starts at 0.01% in 2026–2027 but rises after 2027 to fully fund the program, meaning employers—especially small businesses with thin margins—will bear increasing costs without offsetting benefits, and the burden may be passed to workers through lower wages or reduced hiring, particularly in labor-intensive sectors like construction, hospitality, and agriculture where many excluded workers are employed.
FinancialPeopleRef: Sec. 3(1); Sec. 21(2)(a)-(b)The 680-hour or $7,820 (2025 min. wage × 680) earnings threshold excludes many part-time, seasonal, or gig workers—even if they have recent, substantial work histories—limiting program access to those with stable, verifiable employment, and disproportionately affecting day laborers, farmworkers, and informal economy workers who often lack traditional payroll documentation.
FinancialPeopleRef: Sec. 6(2)(b); Sec. 6(3); Sec. 7(1)
Who Is Most Affected
Undocumented and non-citizen immigrant workers—especially those in low-wage, informal, or seasonal sectors—gain access to income support during layoffs for the first time, reducing poverty and economic vulnerability. However, complex documentation requirements and fear of interacting with any government system may limit uptake despite privacy safeguards.
Small employers in labor-intensive sectors (e.g., construction, agriculture, hospitality) face a new surcharge starting at 0.01% but rising to fully fund the program; while the initial cost is small, it adds to regulatory burden and may be passed to workers. Large employers with many excluded workers benefit from reduced liability risk and improved workforce stability.
Third-party administrators and community-based organizations gain new contracts and funding to support outreach, eligibility screening, and appeals. These groups are well-positioned to serve immigrant communities, but must navigate complex compliance and privacy requirements.
State government gains administrative responsibility and potential federal matching funds, but must invest in systems, oversight, and privacy safeguards. The program aligns with broader equity goals but adds complexity to ESD’s operations.
Existing unemployment insurance trust fund and general fund are not directly affected, but the new program is fully self-funded via employer surcharges and appropriations. Taxpayers and workers with traditional UI benefits see no direct cost or gain.