Washington Employment Law Mid-Year Update for 2025

What employers in Washington state need to know about new laws affecting pay transparency, pregnancy accommodations, and background checks, among other issues

Several key bills passed during the recent Washington legislative session that will significantly impact Washington employers. These include, among others:

(1) the creation of a new Washington mini-WARN Act;

(2) updates to the Paid Family Medical Leave program that broaden job restoration rights and alter benefits continuation rights;

(3) updates to Washington's pay transparency rules that grant employers temporary reprieve from liability for job postings;

(4) an expansion of pregnancy and lactation-related protections under the Healthy Starts Act;

(5) significant updates to the Fair Chance Act prohibiting employers from inquiring about criminal history and/or conducting a background check until after extending a conditional job offer; and

(6) updates defining what constitutes a personnel file and related requirements to provide employees and former employees with copies of their file.

Employers should prepare themselves for the multitude of changes that will impact numerous policies and practices going forward. Below is a summary of the key updates. DWT's employment services practice group will also be hosting a webinar on July 16 that will delve into these changes, which you can sign up for here.

Washington's Mini-WARN Act

Washington will become the 14th state to enact its own version of the federal Worker Adjustment and Retraining Notification Act (WARN Act). These state versions (generally referred to as "mini-WARN Acts,") expand employer obligations beyond what is already required by federal law. Washington's mini-WARN Act, which will go into effect on July 27, 2025, is formally titled Securing Timely Notification and Benefits for Laid-Off Employees Act (Senate Bill 5525) and differs from the federal WARN Act in a number of ways.

The federal WARN Act requires employers with 100 or more full-time employees—not counting those who have worked fewer than six months in the last 12 months or those who work an average of less than 20 hours a week—to provide a 60-day written notice in advance of mass layoffs and plant closings to affected workers or their representatives (e.g., a labor union), the state dislocated worker unit, and the appropriate unit of local government. Qualifying mass layoffs and plant closings are those that affect 50 or more employees at a single site of employment. The number of employees laid off must also represent at least 33 percent of employees at that location. Alternatively, a layoff of 500 or more employees at a single site of employment (regardless of percentage) is also covered by the federal WARN Act. Smaller layoffs that occur within a 30- or 90-day period may be aggregated and trigger the WARN Act notice requirements.

Washington's mini-WARN Act differs from the federal WARN Act in the following notable ways:

• Smaller Businesses Covered: Employers with only 50 or more full-time employees in Washington State are subject to the new law compared to 100 employees under the federal WARN Act.
• No 33% Requirement or Single Site of Employment for Mass Layoffs: Unlike the federal WARN Act, a qualifying "mass layoff" under Washington's new law is one that impacts 50 full-time employees, period. This is regardless of whether the number of employees laid off represents at least 33% of the remaining workforce or whether the layoffs are spread among multiple Washington locations.
• No 90-Day Look Forward/Look Back for Mass Layoffs: The federal WARN Act provides guidance regarding when smaller layoffs that occur over a 90-day period may be aggregated and trigger the notice requirements. Washington's law is triggered only if at least 50 employees are laid off within any 30-day period. This may allow smaller employers—who are not subject to the federal WARN Act—to stagger smaller layoffs to avoid notice obligations.
• More Information in Notice: In addition to the federal requirements, Washington employers must provide additional details in the written notices to employees and the applicable agencies including the addresses of the impacted employee, the anticipated duration of a temporary layoff, and whether the employer is relocating or contracting out its business.
• Exceptions: Under both federal and state law, employers may be exempt from the notice requirement under certain conditions, such as unforeseeable business circumstances and natural disasters. However, the new Washington law provides a specific exception for employers undergoing certain construction projects. In addition, under federal law, the "faltering business" exception that applies to businesses actively seeking capital only applies to plant closings. Under the Washington law, it applies to both plant closings and mass layoffs.
• Employees on Paid Medical/Family Leave: Employees on Washington's paid family or medical leave (under Title 50A RCW) cannot be included in a mass layoff unless exceptions like faltering company, unforeseeable business circumstances, or natural disaster apply. This rule does not affect business closings or employees on other types of leave.
• Effective Date: The law will go into effect on July 27, 2025.

Going forward, Washington employers with 50 or more employees should ensure that any contemplated layoffs or plant closures are in compliance.

Paid Family and Medical Leave: Expanding Worker Protections

Amendments to Washington State's Paid Family and Medical Leave law (PFML) included in HB 1213 significantly broaden job restoration rights, attempt to address leave stacking issues, alter benefits continuation rights, and reduce minimum claim duration periods. The amendments are set to take effect on January 1, 2026. Key updates are noted below. Please watch for further advisories on these amendments as well.

Job Restoration Rights

Currently, in order to have job restoration rights while on PFML, an employee must work for an employer with 50 or more employees and must have worked at least 12 months for the employer and at least 1,250 hours within the 12 months prior to the start of leave. The amendment eliminates the hours of work requirement to qualify for job restoration rights and also reduces the length of service requirement from 12 months to 180 calendar days. The expansion of job restoration rights will impact smaller employers in a phased approach, starting with employers who have 25 or more employees in 2026 with phasing occurring through 2028.

Stacking of Job-Protected Leave

The amendments also aim to prevent employees from using leave under both the federal Family and Medical Leave Act (FMLA) and PFML separately to extend their job-protected leave time. Employers will now be able count FMLA leave toward the total amount of leave entitled to job protection under the PFML if they provide written notice within five business days of the employee's initial request for or use of FMLA leave and then monthly thereafter during the leave year.

Benefits Continuation

Based on the new amendments, it also appears that employees with PFML job restoration rights (see above) will also have benefits continuation rights during the protected leave. We anticipate additional guidance or rulemaking on benefits continuation rights.

Minimum Claim Duration

The amendments will also reduce the minimum claim duration from eight consecutive hours to four consecutive hours.

Going forward, employers should update their leave policies to reflect these changes and establish clear procedures for notifying employees who are on leave about job restoration rights.

Equal Pay and Opportunities Act: Compliance With Job Posting Requirements

Amendments to the Equal Pay and Opportunities Act ("EPOA") will grant employers notice and an opportunity to cure a job posting that fails to comply with the act's wage transparency requirements before liability can accrue. The new legislation makes the following changes to the pay transparency provisions, effective July 27, 2025:

• Employers will have a five-day correction window upon notification that a job posting is noncompliant to correct any deficiency before penalties can be imposed. This five-day opportunity to cure is only available until July 27, 2027, and it is not retroactive.
• Employers may post a fixed wage amount in lieu of a pay range where an employer is offering a fixed amount for the job.
• Employers will not be liable for unauthorized third-party job postings where the employer has contacted the third party and demanded that the posting be corrected or removed.
• Statutory damages will be discretionary, ranging from $100-$5,000, rather than a flat $5,000 penalty per violation.

Also, as a reminder, as of July 1, 2025, the EPOA is also expanding pay equity protections beyond gender to a "protected class" that includes: age, sex, marital status, sexual orientation, race, creed, color, national origin, citizenship, or immigration status, honorably discharged veteran or military status, or the presence of any sensory, mental, or physical disability or the use of a trained dog guide or service animal by a person with a disability, as those terms are defined in RCW 49.60.040.

For more information, please refer to our recent insight. Going forward, employers should ensure job postings comply with these new requirements, implement a system to correct deficiencies within the five-day window, and continue to monitor third-party job postings.

Healthy Starts Act: Pregnancy and Lactation Accommodations

Pregnancy-related accommodations for Washington employees are expanded by amendments to the Healthy Starts Act. SB 5217 expands the definition of "employer" to include any employer that employs one or more persons and any religious or sectarian organization not organized for private profit (whereas previously only employers with 15 or more employees were covered). In addition, the law also mandates that employers pay employees for break time and travel time to express milk as a reasonable accommodation (which is required two years after the birth of a child). Employers cannot require employees to use PTO during this time. Moreover, any break time to express milk must be provided in addition to meal and rest periods required by law. The updates are effective as of January 1, 2027.

Personnel Records Requirements

Amendments to the Industrial Welfare Act in SHB 1308 directly address the legal requirements for providing personnel files to current and former employees and also, for the first time, statutorily defines what must be included in a personnel file.

Personnel File Definition

A personnel file is now statutorily defined to include the following categories of information:

• job application records,
• performance evaluations,
• ·non-active or closed disciplinary records,
• leave and accommodation records,
• payroll records, and
• employment agreements.

Providing Personnel Files

Previously, employers were only required to provide an employee access to their personnel file within a "reasonable" period of time. Now, employers must produce a copy of an employee's personnel file to an employee or former employee at no cost within 21 calendar days of the employee's request. A "former employee" is defined as a person who separated from the employer within three years of the date of the request.

Written Discharge Statement

Employers must provide a signed, written statement within 21 calendar days of a written request stating the effective date of the discharge and reason for the discharge.

Private Cause of Action

A current or former employee may bring a private cause of action for noncompliance. However, before any legal action, the employee/former employee must give five days' notice of intent to sue, and the notice must reference the right to bring a legal action under Washington law. The employee/former employee may be entitled to statutory damages ranging from $250-$1,000, equitable relief, and reasonable attorney's fees and costs for any violation.

Because of the new, arguably broader definition of what must be included in a personnel file and the strict timelines, we encourage employers to consult with legal counsel as soon as possible after receiving a request for an employee's personnel file.

Fair Chance Act Updates: Use of Applicants' Criminal Records

Amendments to the Fair Chance Act in HB 1747 now prohibit employers from inquiring about criminal history and/or conducting a background check until after extending a conditional job offer. As of July 1, 2026 (or January 1, 2027, for employers with fewer than 15 employees) employers may not:

• Ask about an applicant's criminal background until the employer has (1) determined that the applicant is otherwise qualified and (2) made a conditional offer of employment;
• Advertise or implement policies that categorically exclude individuals with criminal records;
• Automatically exclude an individual from a position because they have a criminal record;
• Reject an individual for not disclosing their criminal record prior to a conditional offer of employment;
• Take adverse action based on a juvenile conviction or an arrest record (unless the matter of the arrest is still pending); or
• Take adverse action based on an adult conviction record unless there is a "legitimate business reason" (which is defined by the law) and without providing the individual notice and opportunity to respond.

Before taking adverse action, an employer must notify the individual of the pre-adverse action, identify the information relied upon, and provide at least two business days for the individual to respond or provide mitigation information. If adverse action is taken, the employer must provide a written explanation detailing the reasoning and assessment of the relevant statutory factors and the employer's consideration of the applicant's rehabilitation, good conduct, work experience, education and training.

Statutory penalties for violating this law may include up to $1,500 for a first violation, $3,000 for a second violation, and $15,000 for subsequent violation, per aggrieved party.

Driver's License Requirements and Job Postings

Washington employers are now prohibited from requiring a valid driver's license as a condition of employment or including a statement in a job posting that an applicant must have a valid driver's license, unless driving is an essential function of the position or tied to a legitimate business purpose for a position (SB 5501). Employers must incorporate these changes beginning July 27, 2025.

Washington Paid Sick Time: Use for Immigration Proceedings

Amendments to the Washington paid sick time law expand sick time use and protections to immigration proceedings. Effective July 27, 2025, HB 1875 expands the permissible uses of paid sick time for covered Washington employees, allowing employees to use paid sick time to prepare for or participate in immigration proceedings for themselves or their family members.

Domestic Violence Leave Act: Coverage Expands to Hate Crime Victims

Employees who are victims of hate crimes now have protections under the Domestic Violence Leave Act. Effective January 1, 2026, SB 5101 expands coverage under the Domestic Violence Leave Act to include employees who are victims of hate crimes or whose family members are victims of hate crimes. The statute defines "Hate crime" as the commission, attempted commission, or alleged commission of an offense described in RCW 9A.36.080. It includes conduct that occurs online.

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