SSB 5626
In CommitteeSenate
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 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
Potential Benefits (5)
The bill establishes strong privacy protections that prohibit asking about immigration status, restrict data use for immigration enforcement, and mandate destruction of records within 15 days of program exit—significantly reducing fear and barriers to accessing benefits for vulnerable immigrant workers, thereby strengthening their ability to seek help without risking deportation or family separation.
Rights & LibertiesPeopleRef: Sec. 2(6)(a)-(vii); Sec. 6(2)(a); Sec. 14(1)-(6)The bill provides wage replacement benefits to workers excluded from regular unemployment insurance—including many low-wage, immigrant, and part-time workers—by setting eligibility at 680 hours (≈13 weeks full-time) of Washington work and allowing self-attestation of job search, which expands access to income support during economic downturns for populations historically excluded from safety nets.
economic securityPeopleRef: Sec. 6(2)(b); Sec. 6(3); Sec. 7(1)-(2)The bill makes unemployment benefits exempt from debt collection and prohibits waiving benefit rights—protecting low-income claimants from predatory collection practices and ensuring benefits reach intended recipients for essential needs.
economic securityPeopleRef: Sec. 16By creating a parallel, non-federal benefit program, the bill avoids triggering federal immigration enforcement reporting requirements that would otherwise apply if benefits were administered through the federal-state unemployment system, reducing the risk of immigration enforcement actions against participants.
Public SafetyLean peopleRef: Sec. 3(2)(b); Sec. 5; Sec. 10(1)(b)(v)The bill reserves legislative authority to amend or repeal the program at any time and includes a federal preemption clause, which protects the state from losing federal unemployment funds but also creates long-term program instability and limits statutory permanence.
Local GovernmentRef: Sec. 18; Sec. 24
Potential Concerns (5)
The bill establishes strong privacy protections that prohibit asking about immigration status, restrict data use for immigration enforcement, and mandate destruction of records within 15 days of program exit—significantly reducing fear and barriers to accessing benefits for vulnerable immigrant workers, thereby strengthening their ability to seek help without risking deportation or family separation.
Rights & LibertiesPeopleRef: Sec. 2(6)(a)-(vii); Sec. 6(2)(a); Sec. 14(1)-(6)The bill provides wage replacement benefits to workers excluded from regular unemployment insurance—including many low-wage, immigrant, and part-time workers—by setting eligibility at 680 hours (≈13 weeks full-time) of Washington work and allowing self-attestation of job search, which expands access to income support during economic downturns for populations historically excluded from safety nets.
economic securityPeopleRef: Sec. 6(2)(b); Sec. 6(3); Sec. 7(1)-(2)The bill makes unemployment benefits exempt from debt collection and prohibits waiving benefit rights—protecting low-income claimants from predatory collection practices and ensuring benefits reach intended recipients for essential needs.
economic securityPeopleRef: Sec. 16By creating a parallel, non-federal benefit program, the bill avoids triggering federal immigration enforcement reporting requirements that would otherwise apply if benefits were administered through the federal-state unemployment system, reducing the risk of immigration enforcement actions against participants.
Public SafetyLean peopleRef: Sec. 3(2)(b); Sec. 5; Sec. 10(1)(b)(v)The bill reserves legislative authority to amend or repeal the program at any time and includes a federal preemption clause, which protects the state from losing federal unemployment funds but also creates long-term program instability and limits statutory permanence.
Local GovernmentRef: Sec. 18; Sec. 24
Who Is Most Affected
This group—comprising undocumented workers and those with temporary or pending status—will gain access to income support during unemployment for the first time, reducing poverty and economic insecurity without fear of immigration enforcement due to strong privacy safeguards.
Employers will pay a new surcharge starting at 0.01% of wages (≈$400M total since 2010 already contributed by them on undocumented workers’ wages), which is modest relative to payroll size but represents a new cost that disproportionately affects small businesses and industries with high concentrations of immigrant labor (e.g., construction, hospitality).
Community-based organizations will receive contracts for outreach and application assistance, creating new funding and capacity for immigrant-serving nonprofits, though reliance on third-party administration may limit long-term institutional benefits.
The Employment Security Department will expand its role through a contracted administrator, increasing administrative burden and requiring new oversight capacity, but also broadening its mandate to serve an underserved population.