Mass layoffs

AN ACT Relating to addressing mass layoffs, relocations, and 1
terminations at covered establishments; amending RCW 49.44.211 and 2
49.62.020; adding a new section to chapter 50.04 RCW; adding a new 3
section to chapter 19.86 RCW; adding a new chapter to Title 49 RCW; 4
providing an effective date; and prescribing penalties.5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
NEW SECTION. Sec. 1. (1) Research shows mass layoffs can have a 7
detrimental effect on both employees and employers. Detrimental 8
effects can include loss of knowledge and institutional memory, low 9
morale and a decline in job satisfaction for the remaining employees, 10
weakened engagement, higher voluntary turnover, and lower innovation 11
for the business. The legislature recognizes that workers are often 12
very dependent on their employers for their livelihood and well-13
being. The legislature seeks to encourage employers to provide 14
adequate notice and protections to workers. The legislature also 15
intends to encourage more transparency in the employer's process of 16
conducting mass layoffs, which can help reduce these detrimental 17
effects.18
(2) The legislature also seeks to determine whether mass layoffs 19
result in a disproportionate dismissal of employees belonging to 20
protected classes and whether certain groups of employees are laid 21
H-0518.1
HOUSE BILL 1313
State of Washington 69th Legislature 2025 Regular Session
By Representatives Scott, Farivar, Berry, Alvarado, Ryu, Goodman,
Simmons, Thai, Reed, Ormsby, Macri, Ramel, Pollet, and Doglio
Read first time 01/15/25. Referred to Committee on Labor & Workplace
Standards.
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off more than other groups. The legislature also seeks to reduce the 1
impact that mass layoffs have on terminated employees by increasing 2
the ways those employees receive information about benefits and 3
programs they may be entitled to or eligible for. 4
NEW SECTION. Sec. 2. The definitions in this section apply 5
throughout this chapter unless the context clearly requires 6
otherwise.7
(1) "Covered establishment" means any industrial or commercial 8
facility or part thereof that employs, or has employed within the 9
preceding 12 months, 100 or more employees. 10
(2) "Department" means the employment security department.11
(3) "Employee" means a person who, under the department's 12
policies and rules applicable in determining employment, has had the 13
status of an employee for at least six months of the 12 months 14
preceding the date on which notice under section 3 of this act is 15
required. 16
(4) "Employer" means any business entity that directly or 17
indirectly owns and operates a covered establishment. A parent 18
corporation is an employer as to any covered establishment directly 19
owned and operated by its corporate subsidiary. 20
(5) "Layoff" means a separation from employment.21
(6) "Mass layoff" means a layoff during any 30-day period of 50 22
or more employees at either a covered establishment or at one or more 23
parts of a covered establishment. 24
(7) "Relocation" means the removal of all or substantially all of 25
the industrial or commercial operations in a covered establishment to 26
a different location 100 miles or more away. 27
(8) "Termination" means the cessation or substantial cessation of 28
industrial or commercial operations in a covered establishment.29
NEW SECTION. Sec. 3. (1) An employer may not order a mass 30
layoff, relocation, or termination at a covered establishment unless, 31
60 days before the order goes into effect, the employer has given 32
written notice of the order in compliance with subsection (2) of this 33
section.34
(2)(a) The employer must provide written notice to the following:35
(i) The employees of the covered establishment affected by the 36
order; and 37
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(ii) The department, the local workforce development council, and 1
the chief elected official of each city and county government within 2
which the termination, relocation, or mass layoff occurs.3
(b) An employer required to give notice of any mass layoff, 4
relocation, or termination under this section must include in its 5
notice the elements specified by the department in rule, which must 6
be consistent with the rules specifying the content of the notice 7
required under the federal worker adjustment and retraining act, 29 8
U.S.C. 2101 et seq. In addition, a written notice of a mass layoff 9
must include a statement declaring that the employer has considered 10
alternative measures to a mass layoff, a statement that the mass 11
layoff is necessary, and a detailed explanation with data describing 12
reasons behind the decision to conduct the mass layoff. Alternative 13
measures may include, for example, transfers, voluntary demotion, 14
voluntary reduced work schedule, voluntary leave without pay, 15
voluntary separation, early retirement, and other methods to minimize 16
disruption to employees. 17
(3) The department must publish on the department's website the 18
notices the department receives pursuant to this section.19
NEW SECTION. Sec. 4. (1) An employer is not required to comply 20
with the notice requirement in section 3 of this act if the 21
department determines that all of the following conditions are met:22
(a) As of the time that notice would have been required, the 23
employer was actively seeking capital or business;24
(b) The capital or business sought, if obtained, would have 25
enabled the employer to avoid or postpone the mass layoff, 26
relocation, or termination; and 27
(c) The employer reasonably and in good faith believed that 28
giving the notices required by section 3 of this act would have 29
precluded the employer from obtaining the needed capital or business.30
(2) The department may not determine that the employer was 31
actively seeking capital or business under subsection (1) of this 32
section unless the employer provides the department with both of the 33
following: 34
(a) A written record consisting of all documents relevant to the 35
determination of whether the employer was actively seeking capital or 36
business, as specified by the department; and 37
(b) An affidavit verifying the contents of the documents 38
contained in the record. 39
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(3) The affidavit provided to the department pursuant to 1
subsection (2) of this section must contain a declaration signed 2
under penalty of perjury stating that the affidavit and the contents 3
of the documents contained in the record submitted pursuant to 4
subsection (2) of this section are true and correct.5
(4) An employer is not required to comply with the notice 6
requirements in section 3 of this act if a mass layoff, relocation, 7
or termination is necessitated by a physical calamity or act of war.8
(5) An employer is not required to comply with the notice 9
requirements in section 3 of this act if a mass layoff, relocation, 10
or termination is the result of the completion of a construction 11
project, and the affected employees were hired with the understanding 12
that their employment was limited to the duration of the construction 13
project. 14
NEW SECTION. Sec. 5. (1) An employer who fails to give notice 15
as required by section 3 of this act before ordering a mass layoff, 16
relocation, or termination, is liable to each employee entitled to 17
notice who lost his or her employment for:18
(a) The value of wages at the average regular rate of 19
compensation received by the employee during the last three years of 20
his or her employment, or the employee's final rate of compensation, 21
whichever is higher; and 22
(b) The value of any benefits to which the employee would have 23
been entitled had his or her employment not been lost including, but 24
not limited to: (i) The value of any pension, profit sharing, stock 25
bonus, stock purchase, and stock option plans; and (ii) the cost of 26
any medical expenses incurred by the employee that would have been 27
covered under an employee benefit plan. 28
(2) Liability under this section is calculated for the period of 29
the employer's violation, up to a maximum of 60 days.30
(3) The amount of an employer's liability under this section is 31
reduced by the following: 32
(a) Any wages, except vacation moneys accrued prior to the period 33
of the employer's violation, paid by the employer to the employee 34
during the period of the employer's violation; 35
(b) Any voluntary and unconditional payments made by the employer 36
to the employee that were not required to satisfy any legal 37
obligation; and 38
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(c) Any payments by the employer to a third party or trustee, 1
such as premiums for health benefits or payments to a defined 2
contribution pension plan, on behalf of and attributable to the 3
employee for the period of the violation. 4
NEW SECTION. Sec. 6. (1) An employer who fails to give notice 5
as required by section 3 of this act is subject to a civil penalty of 6
not more than $500 for each day of the employer's violation. 7
However, the employer is not subject to a civil penalty under this 8
section if the employer pays to all applicable employees the amounts 9
for which the employer is liable under section 5 of this act within 10
three weeks from the date the employer orders the mass layoff, 11
relocation, or termination.12
(2) Any civil penalties collected under this section must be paid 13
into the unemployment trust fund. 14
NEW SECTION. Sec. 7. (1) By October 1, 2026, the department 15
shall develop a mass layoff survey and data collection system that 16
employers are required to distribute in accordance with this section.17
(2) When the department receives a notice under section 3 of this 18
act from an employer, the department shall inform the employer of the 19
employer's responsibility to provide the survey to affected 20
employees. 21
(3) At a minimum, the survey must: 22
(a) Contain a brief explanation of the purpose of the survey;23
(b) Clearly indicate that completing the survey is voluntary;24
(c) Clearly indicate that completing or not completing the survey 25
does not impact any unemployment benefits or other rights or programs 26
the employee may be entitled to or eligible for; and27
(d) Be designed to collect demographic data, such as age, gender, 28
race, ethnicity, and other relevant data, anonymously without 29
collecting identifying information of the employee, for the purpose 30
of understanding how individuals from protected classes are impacted.31
(4)(a) When an employer provides employees with a notice under 32
section 3 of this act, the employer must also provide to each 33
employee being terminated the survey created under this section. The 34
employer must provide the survey at no cost to the employee.35
(b) Employees must be provided at least 30 days to complete and 36
submit the survey. Within 45 days after the employer has provided 37
surveys to affected employees, the employer must also submit to the 38
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department general demographic data, as determined by the department, 1
that the employer has of its entire workforce at the site of the 2
layoff, including employees who are not being terminated.3
(5) The department shall compile the data received under this 4
section and include demographic data of an employer's mass layoff on 5
the department's website. 6
NEW SECTION. Sec. 8. (1)(a) An employer must provide a rapid 7
response partner reasonable access to employees who receive a notice 8
as required under section 3 of this act. The purpose of providing 9
access is to provide a presentation, preferably in person, to 10
employees to assist them in quickly maximizing public and private 11
resources to minimize the disruptions associated with job losses. 12
Resources include transitional services to employees affected by the 13
mass layoff, unemployment insurance information, dislocated worker 14
program services, job seeker services available at the local work 15
source, and other benefits and programs the employee may be entitled 16
to or eligible for.17
(b) An employer must notify affected employees about the time and 18
location of rapid response presentations. 19
(c) A rapid response partner must be a designee of a local 20
workforce development board established under P.L. 113-128, the 21
workforce innovation and opportunity act. 22
(2) Reasonable access to employees means: 23
(a) The access occurs during the employees' regular working hours 24
at the employees' regular worksite or the employees' customary work 25
location, or at a location mutually agreed to by the employer, the 26
employees' exclusive bargaining representative, if applicable, and 27
the rapid response partner; 28
(b) The time for the presentation is for no less than 90 minutes.29
(3) No employee may be mandated to attend the rapid response 30
presentation. 31
(4) An employer may agree to longer or more frequent access, but 32
in no case may an employer agree to less access than required by this 33
section. 34
NEW SECTION. Sec. 9. (1) The department shall administer and 35
investigate violations of section 3 of this act. In any investigation 36
or proceeding under this chapter, the commissioner of the department 37
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has, in addition to all other powers granted by law, the authority to 1
examine the books and records of an employer. 2
(2) The department shall adopt rules necessary to carry out this 3
act. 4
NEW SECTION. Sec. 10. (1) A person, including a local 5
government or an employee representative, seeking to establish 6
liability against an employer may bring a civil action on behalf of 7
the person, other persons similarly situated, or both, in any court 8
of competent jurisdiction.9
(2) If the court determines that an employer conducted a 10
reasonable investigation in good faith, and had reasonable grounds to 11
believe that its conduct was not a violation of section 3 of this 12
act, the court may reduce the amount of any penalty imposed against 13
the employer under this act. 14
(3) The court may award reasonable attorneys' fees as part of 15
costs to any plaintiff who prevails in a civil action brought under 16
this act. 17
NEW SECTION. Sec. 11. The rights and remedies provided to 18
employees by this chapter are in addition to, and not in lieu of, any 19
other contractual or statutory rights and remedies of the employees, 20
and are not intended to alter or affect such rights and remedies, 21
except that the period of notification required by this chapter shall 22
run concurrently with any period of notification required by contract 23
or by any other statute. Collective bargaining agreements and other 24
contracts may be used to clarify or amplify the terms and conditions 25
of this chapter, but may not reduce any rights or remedies provided 26
under this chapter.27
NEW SECTION. Sec. 12. This chapter may be known and cited as 28
the Washington worker adjustment and retraining notification act or 29
the Washington WARN act.30
NEW SECTION. Sec. 13. Sections 1 through 12 of this act 31
constitute a new chapter in Title 49 RCW.32
NEW SECTION. Sec. 14. A new section is added to chapter 50.04 33
RCW to read as follows: 34
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Payments to a person under section 5 of this act may not be 1
construed as wages or used to deny or reduce benefits under this 2
title. 3
Sec. 15. RCW 49.44.211 and 2022 c 133 s 2 are each amended to 4
read as follows: 5
(1)(a) A provision in an agreement by an employer and an employee 6
not to disclose or discuss conduct, or the existence of a settlement 7
involving conduct, that the employee reasonably believed under 8
Washington state, federal, or common law to be illegal 9
discrimination, illegal harassment, illegal retaliation, a wage and 10
hour violation, or sexual assault, or that is recognized as against a 11
clear mandate of public policy, is void and unenforceable. Prohibited 12
nondisclosure and nondisparagement provisions in agreements concern 13
conduct that occurs at the workplace, at work-related events 14
coordinated by or through the employer, between employees, or between 15
an employer and an employee, whether on or off the employment 16
premises. Prohibited nondisclosure and nondisparagement provisions 17
include those contained in employment agreements, independent 18
contractor agreements, agreements to pay compensation in exchange for 19
the release of a legal claim, or any other agreement between an 20
employer and an employee. 21
(b) In addition to (a) of this subsection, a provision in an 22
agreement by an employer and an employee is void and unenforceable if 23
the provision prohibits the employee from disclosing or discussing 24
the employer's conduct regarding a mass layoff as a condition of the 25
employee receiving severance pay or compensation under section 5 of 26
this act. It is a violation of this section for an employer to 27
discriminate against or otherwise retaliate against an employee for 28
disclosing or discussing conduct regarding a mass layoff that the 29
employee is not prohibited from discussing or disclosing under this 30
subsection. For purposes of this subsection, "mass layoff" has the 31
same meaning as defined in section 2 of this act. This subsection 32
(1)(b) applies to agreements entered into on or after the effective 33
date of this section.34
(2) This section does not prohibit the enforcement of a provision 35
in any agreement that prohibits the disclosure of the amount paid in 36
settlement of a claim. 37
(3) It is a violation of this section for an employer to 38
discharge or otherwise discriminate or retaliate against an employee 39
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for disclosing or discussing conduct that the employee reasonably 1
believed to be illegal harassment, illegal discrimination, illegal 2
retaliation, wage and hour violations, or sexual assault, that is 3
recognized as illegal under state, federal, or common law, or that is 4
recognized as against a clear mandate of public policy, occurring in 5
the workplace, at work-related events coordinated by or through the 6
employer, between employees, or between an employer and an employee, 7
whether on or off the employment premises. 8
(4) It is a violation of this section for an employer to request 9
or require that an employee enter into any agreement provision that 10
is prohibited by this section. 11
(5) It is a violation of this section for an employer to attempt 12
to enforce a provision of an agreement prohibited by this section, 13
whether through a lawsuit, a threat to enforce, or any other attempt 14
to influence a party to comply with a provision in any agreement that 15
is prohibited by this section. 16
(6) This section does not prohibit an employer and an employee 17
from protecting trade secrets, proprietary information, or 18
confidential information that does not involve illegal acts.19
(7) An employer who violates this section after June 9, 2022, is 20
liable in a civil cause of action for actual or statutory damages of 21
$10,000, whichever is more, as well as reasonable attorneys' fees and 22
costs. 23
(8) For the purposes of this section, "employee" means a current, 24
former, or prospective employee or independent contractor.25
(9) A nondisclosure or nondisparagement provision in any 26
agreement signed by an employee who is a Washington resident is 27
governed by Washington law. 28
(10) The provisions of this section are to be liberally construed 29
to fulfill its remedial purpose. 30
(11) As an exercise of the state's police powers and for remedial 31
purposes, this section is retroactive from June 9, 2022, only to 32
invalidate nondisclosure or nondisparagement provisions in agreements 33
created before June 9, 2022, and which were agreed to at the outset 34
of employment or during the course of employment. This subsection 35
allows the recovery of damages only to prevent the enforcement of 36
those provisions. This subsection does not apply to a nondisclosure 37
or nondisparagement provision contained in an agreement to settle a 38
legal claim. 39
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Sec. 16. RCW 49.62.020 and 2024 c 36 s 3 are each amended to 1
read as follows: 2
(1) A noncompetition covenant is void and unenforceable:3
(a)(i) Unless the employer discloses the terms of the covenant in 4
writing to the prospective employee no later than the time of the 5
initial oral or written acceptance of the offer of employment and, if 6
the agreement becomes enforceable only at a later date due to changes 7
in the employee's compensation, the employer specifically discloses 8
that the agreement may be enforceable against the employee in the 9
future; or 10
(ii) If the covenant is entered into after the commencement of 11
employment, unless the employer provides independent consideration 12
for the covenant; 13
(b) Unless the employee's earnings from the party seeking 14
enforcement, when annualized, exceed one hundred thousand dollars per 15
year. This dollar amount must be adjusted annually in accordance with 16
RCW 49.62.040; 17
(c) If the employee is terminated as the result of a layoff, 18
unless enforcement of the noncompetition covenant includes 19
compensation equivalent to the employee's base salary at the time of 20
termination for the period of enforcement minus compensation earned 21
through subsequent employment during the period of enforcement;22
(d) If the employee is terminated as the result of a mass layoff, 23
as defined in section 2 of this act, and the employer failed to 24
comply with the notice requirement in section 3 of this act.25
(2) A court or arbitrator must presume that any noncompetition 26
covenant with a duration exceeding eighteen months after termination 27
of employment is unreasonable and unenforceable. A party seeking 28
enforcement may rebut the presumption by proving by clear and 29
convincing evidence that a duration longer than eighteen months is 30
necessary to protect the party's business or goodwill.31
NEW SECTION. Sec. 17. A new section is added to chapter 19.86 32
RCW to read as follows: 33
(1) It is unlawful for any employer to cooperate or coordinate 34
with one or more competing employers regarding mass layoffs of 35
employees, including timing of mass layoffs, severance pay, or other 36
terms and conditions of mass layoffs. 37
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(2) Any violation of this section constitutes an unfair method of 1
competition and unfair or deceptive act in trade or commerce and 2
constitutes a violation under RCW 19.86.020. 3
(3) For the purposes of this section, the terms "employer" and 4
"mass layoff" have the same meanings as defined in section 2 of this 5
act. 6
NEW SECTION. Sec. 18. If any provision of this act or its 7
application to any person or circumstance is held invalid, the 8
remainder of the act or the application of the provision to other 9
persons or circumstances is not affected.10
NEW SECTION. Sec. 19. This act takes effect July 1, 2026.11
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