Several rounds of agency rulemaking have either already started or are coming up soon that city HR and labor relations professionals should know about. Here are a few notes on these rulemakings to help keep you up to speed.

Unemployment benefits for striking workers

The Employment Security Department (ESD) recently began stakeholder focus group meetings to start its development of rules to implement SB 5041 (2025). The bill allows certain striking workers to apply for up to six weeks of unemployment benefits, unless the strike is found to be illegal in a final judgment in court. AWC was concerned throughout the development and passage of the bill that public sector employers, whose employees generally do not have the right to strike, would be held liable for unemployment insurance costs if any illegally striking workers were paid benefits prior to a court’s final judgment.

The initial stakeholder discussions with employers raised this issue with ESD. The agency will consider ways to make sure striking employees know they could be subject to repaying benefits if their strike is eventually declared illegal, though the statute doesn’t provide a mechanism for ESD to prevent public employees on strike from applying for benefits until their strike is found to be illegal in court. The discussions also raised the issue of ESD needing a plan to handle a surge in claims in the event of a large strike, new forms that would be needed, and effective communication channels between the agency and interested parties.

At this early stage, there is not yet a website for this rulemaking, but cities can sign up for ESD’s rulemaking updates to get the most current information when it is available.

Paid Family and Medical Leave

HB 1213 (2025) made major changes to the way the state’s Paid Family and Medical Leave (PFML) program operates – especially regarding how job protections will apply and  how concurrent leave between PFML and federal Family and Medical Leave Act leave will be managed, among other things. ESD is still in the process of putting together its early drafts of the proposed rules and has not yet set a date for its first stakeholder meetings. ESD staff expects the rulemaking to take place from late August through November ahead of HB 1213’s January 1, 2026 effective date.

Cities interested in participating in this rulemaking should sign up to receive notices (sign up for ESD’s GovDelivery here) and also keep an eye out on the PFML rulemaking website for updated information.

Surety requirements for self-insured cities

The Department of Labor & Industries (L&I) held its first meetings to implement HB 1275 (2025) earlier this summer. That bill gives L&I broad rulemaking authority to establish surety requirements for employers self-insured for workers’ compensation that get decertified from self-insurance under the state’s new “good faith and fair dealing” rules. A surety would be used to cover the costs of ongoing claims that get taken over by L&I after decertification, but whose costs are still the responsibility of the employer under their former self-insurance plan.

AWC has argued that for cities, surety requirements should be minimal since (unlike the private sector) they are in the unique position of being existing governments that are not just going to cease to exist like a private firm can. Cities can also rely on their tax base to cover costs over time and rarely declare bankruptcy, so cities are in a unique position compared to other self-insured employers. AWC is actively engaged in this rulemaking and will continue to keep cities updated on new developments.