The state of Washington has enacted legislation (Senate Bill 5525, Securing Timely Notification and Benefits for Laid-Off Employees Act (the Act)), which adds employer requirements surrounding mass layoffs and business closures. The Act is set to take effect on July 27, 2025.
The Details
The Act requires a Washington employer with 50 or more employees to provide at least 60 days’ advance notice to employees, unions and the state for the following events that result in employment losses of 50 or more employees:
- A mass layoff: A workforce reduction during a 30-day period (the reduction may span multiple sites of employment in the state) that is not the result of a business closing; or
- A business closure: A permanent or temporary shutdown of a single site of employment of one or more facilities or operating units. The law may allow employers to close individual facilities or operating units within a single site of employment (even if 50 or more employees are affected) without triggering the law provided:
Note: The Act does not include part-time employees who work an average of fewer than 20 hours per week and employees who are employed for fewer than six of the 12 months prior to the date on which notice is required. See the text of the law for further details.
An employer cannot order a business closing or a mass layoff until the end of the 60-day period that begins after the employer provides the required notice to all required parties.
Notice Requirements
Unless an exception applies, an employer must provide written 60 days' notice of a qualifying event to unrepresented employees, unions and the state Employment Security Department that contains:
- Requirements under the Federal WARN Act.
- The name and address of the employment site where closing or mass layoff will occur.
- The name and contact information of a company official to reach out to for further information.
- A statement on whether the planned action is expected to be permanent or temporary (or if the entire business is to be closed, a statement to that effect). Note: If the planned action is expected to be temporary, the statement must also include whether the planned action is expected to last longer or shorter than three months.
- The expected date of the first employment loss and the anticipated schedule for employment losses.
- The job titles of the positions that will be affected and the names of the employees currently holding the affected jobs. (The notice to the state department must also include the addresses of the affected employees).
- A statement on whether the layoff or closing results from (or will result in) the relocation of, or contracting out of, an employer's operation or the impacted employees' positions.
An employer must also provide notice:
- Of the date or schedule of dates of a planned business closing or mass layoff extended beyond the date of any period announced in the original notice; and
- When an exception only applies for part of a 60-day notice period (or no longer applies). See the text of the law for further details.
Exceptions
Under the Act, an employer is not required to comply with the notice requirement for exceptions such as a faltering company, an unforeseeable business circumstance or a natural disaster. Employers will need to substantiate this exception to the state.
In addition, unless an exception applies, an employer may not include any employee on Washington Paid Family and Medical Leave in a mass layoff. See the text of the law for further details.
Note: This protection does not apply to business closings or to leave other than Washington Paid Family and Medical Leave.
Penalties
Employers found to have violated the law may face penalties. The Act contains a three-year statute of limitations.
Next Steps
- Review requirements under the Act and the Federal WARN Act by July 27, 2025.
- Update policies and procedures and prepare in advance for layoffs and business closures.
- Train supervisors and personnel and consult legal counsel before a layoff or business closure.