SSB 5626
In CommitteeSenate
Wage replacement
Creating a wage replacement program for certain Washington workers excluded from unemployment insurance.
- Introduced (completed)
- 2Committee (current stage)
- 3Floor Vote (not started)
- 4Opposite Chamber (not started)
- 5Governor (not started)
- 6Signed (not started)
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 creates a new state wage replacement program to provide weekly unemployment-like benefits to workers in Washington who are excluded from regular unemployment insurance—especially immigrants without work authorization. It is funded by a new employer surcharge and designed to support low-income and immigrant families during economic crises like the pandemic. Benefits begin January 1, 2027, and include strong privacy safeguards to protect applicants.
- Creates a new wage replacement program for workers who are unemployed and ineligible for regular unemployment insurance—primarily including workers without work authorization or with temporary or pending status.
- Eligibility requires Washington residency (verified by documents like utility bills, ID, library card, or school records), at least 680 hours of work or equivalent wages in the base year, and unemployment through no fault of the claimant.
- Benefits equal regular unemployment benefit amounts (calculated under existing law), with a maximum of 26 weeks or one-third of base-year wages, whichever is less.
- A third-party administrator (selected by July 1, 2026) will handle application processing, benefit payments, outreach, and appeals, under supervision of the Employment Security Department.
- Strong privacy and confidentiality protections: the program prohibits asking about immigration status, requires destruction of records within 15 days of program exit, and bars use of data for immigration enforcement.
Who is affected
- Immigrant workers without work authorization or with limited work authorization — Workers who are not eligible for regular Washington unemployment insurance (e.g., those without work authorization, those with expired or pending work authorization, and those who recently regularized status) may receive weekly wage replacement benefits if they meet eligibility criteria, helping them cover basic needs during unemployment.
- Washington employers — Employers will pay a new surcharge (starting at 0.01% in 2026–2027, then adjusted to fund program costs) into a dedicated account to finance the wage replacement program.
- Community-based organizations serving immigrant and low-income populations — Community-based organizations will be contracted to help outreach, screen applicants, and assist with documentation, creating new funding and partnership opportunities.
- Washington Employment Security Department — The Washington Employment Security Department will administer the program through a contracted third-party administrator, incurring administrative costs but also expanding its role to serve a broader population.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (4)
The bill provides a critical financial safety net for immigrant workers who are currently excluded from standard unemployment insurance. By providing weekly benefits equivalent to regular UI, it helps prevent deep poverty and economic devastation for low-income families during job loss, particularly in sectors like construction, hospitality, and retail where many undocumented workers are employed.
FinancialPeopleRef: Sec. 1 (Findings) and Sec. 8 (Benefit amounts)The bill includes robust privacy safeguards that prohibit the state or TPA from inquiring about immigration status, using data for immigration enforcement, or contacting employers. This reduces the fear of deportation and allows eligible workers to access essential economic support without risking their legal status or family unity.
Rights & LibertiesPeopleRef: Sec. 14 (Privacy and confidentiality protections)Benefits received under this program are exempt from debt collection, levy, or attachment, except for debts incurred for necessaries. This protects recipients from predatory lending practices and ensures that the financial assistance is actually used for basic needs rather than being seized by creditors.
FinancialPeopleRef: Sec. 16 (Exemption from levy and debt collection)The bill mandates outreach through community-based organizations and allows for assistance in gathering documentation. This helps build trust between immigrant communities and state services, potentially increasing overall participation in public health and safety initiatives and reducing social isolation among vulnerable populations.
Public SafetyLean peopleRef: Sec. 3 (Community-based organizations) and Sec. 6 (Assistance in gathering documentation)
Potential Concerns (4)
The bill imposes a new 'wage replacement program surcharge' on all employers, starting at 0.01% in 2026-2027 and potentially increasing to a combined cap of 0.08% thereafter. This represents a direct increase in payroll costs for businesses, which may be passed on to consumers through higher prices or absorbed as reduced profit margins.
Business & EmploymentLean industryRef: Sec. 21 (RCW 50.29.041 amendment) and Sec. 22 (RCW 50.24.014 amendment)The bill explicitly states that benefits are payable only to the extent that moneys are available in the Washington wage replacement account. This creates a risk that during economic downturns—when unemployment is highest and the need for benefits is greatest—the program may be underfunded or depleted, leaving eligible workers without the promised support.
FinancialLean industryRef: Sec. 11 (Benefits due only to extent moneys are available)Eligibility requires proof of Washington residency and 680 hours of work, with specific documentation requirements (utility bills, school records, etc.). For undocumented workers who often lack formal documentation or stable housing, these bureaucratic hurdles may create significant barriers to accessing benefits, effectively excluding the most vulnerable members of the target population.
Rights & LibertiesLean industryRef: Sec. 6 (Eligibility requirements including 680 hours work and documentation)The program relies on a third-party administrator (TPA) to process claims and pay benefits. The costs of contracting with and supervising a TPA, along with administrative overhead, will be funded by the employer surcharge, meaning a portion of the new tax revenue will be consumed by administrative inefficiencies rather than direct benefit payments.
Local GovernmentRef: Sec. 3 (Third-party administrator selection and costs)
Who Is Most Affected
- Undocumented and mixed-status immigrant workersPositive Impact
These workers gain access to a new financial safety net that was previously unavailable to them due to their immigration status. The privacy protections significantly lower the risk of deportation associated with seeking state assistance.
- Washington State EmployersNegative Impact
All employers face a new payroll tax surcharge. While the initial rate is low (0.01%), it represents an additional cost that may impact profit margins, particularly for small businesses or those with high turnover in the affected industries.
- Community-Based Organizations (CBOs)Positive Impact
The bill explicitly directs funding to community-based organizations for outreach and documentation assistance. This creates new revenue streams and strengthens the capacity of these organizations to serve their communities.
- Washington Employment Security DepartmentMixed Impact
The Employment Security Department must oversee the TPA, manage the new account, and ensure compliance with federal and state privacy laws. This expands their administrative burden and requires new operational capabilities.
- General TaxpayersMixed Impact
As the primary payers of the new surcharge, taxpayers bear the cost of the program. However, the bill argues that employers have already contributed $400 million to unemployment funds for undocumented workers, suggesting this is a recouping of previously paid funds rather than a net new tax burden on the public.