AWB 2022 Legislative Review | Page 8

2022 legislative review

Employment Law & Privacy

Robert Battles : Labor & Employment Law , Immigration , Technology & Privacy , Litigation
Even though it was a short 60-day legislative session , it was filled with a plethora of bills that had the potential to fundamentally reshape the way business is done in Washington .
The majority of the bills introduced in the employment law area focused on Unemployment Insurance ( UI ) and Paid Family and Medical Leave ( PFML ). UI continued to see legislation passed to address the historic drain on the fund because of the global pandemic . We also saw legislation to address the financial shortfalls in both the PFML programs as well as the Long-Term Care ( LTC ) programs . ( For the LTC discussion please see the Health Care section in this publication .) Privacy also remained a key issue in the 2022 session .
Both the House and the Senate were controlled by the Democrats . Even with both houses controlled by the same party , many of the bills failed to move . We are seeing an increased number of controversial bills that split individuals of the same party ideologically .
AWB Government Affairs Director Robert ( Bob ) Battles talks about workplace Labor issues continue to be pushed at the local level . law changes during AWB ’ s regional meeting in Spokane in June . ( Hazard pay , scheduling , independent contractor regulation , etc …) This continues to create a patchwork of labor and employment regulations that hampers business growth and stifles innovation in Washington .
AWB remains committed to working for a balanced approach that allows business to thrive and workers to be protected . Because many of the issues raised in the last two sessions remain unresolved , it is expected that many of the same issues will continue to be the focus of the Legislature in the 2023 session .
unemployment insurance
ESSB 5873 concerning unemployment insurance , family leave , and medical leave premiums
Passed / AWB Supported
Engrossed Substitute Senate Bill 5873 was introduced by Sen . Karen Keiser , D-Kent . This bill originally addressed both Paid Family & Medical Leave ( PFML ) and Unemployment Insurance ( UI ). As a result of the PFML solvency issue , the bill was modified to remove the PFML provisions . In the final version only the UI provisions remained .
The remaining UI provisions in the bill would do the following :
• Decrease the maximum social tax ( social cost factor ) for 2022 and 2023 : » 2022 reduced to 0.5 % ( current law is 0.75 %) » 2023 reduced to 0.7 % ( current law is 0.85 %)
• Under current law , the social tax is graduated based on a multiplier for the employer ’ s specific rate class , varying from 40 % of the social tax up to 120 %. » Under the bill , for 2023 for small employers ( 10 or fewer employees ), if their rate class is greater than 7 , the rate class is 7 for purposes of the graduated rate multiplier only . The rate class multiplier for rate class 7 is 64 %.
• Correct the statutory references in two unemployment statutes .
The PFML provisions that were removed from the final passed legislation :
8 association of washington business