For HR- and pension-related legislation, the 2026 legislative session convened like a lion but closed out more like a lamb. Here is an update on where bills covered in HR Insightsthroughout the session landed at the end. This is not an exhaustive list; visit AWC’s bill tracker and filter by topic to see all the HR- and pension-related bills AWC tracked this year.

Passed

HB 2034 transfers the $3.3 billion surplus from the Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF) Plan 1 account and creates a new LEOFF account at 110% funded. The LEOFF 1 surplus is based off returns that were in part originally funded by cities and employees to cover law enforcement and firefighter retirement obligations. The bill did include a provision directing a study of the potential of transferring the local obligation for medical coverage for LEOFF 1 retirees to the state.

HB 2105, known as the Immigrant Workers Protection Act, outlines employers’ rights and enacts major employer notification requirements for federal I-9 audits. The bill requires employers to notify all employees and employee representatives, including former employees within the last three years, within five business days of the employer’s receipt of notice from a federal agency of I-9 audits. Notifications are to include specifically outlined information as well as posting and delivery methods for compliance with the act. Within five days of receipt of audit findings, employers must notify affected employees of the need to correct records. In the notice, employers must include a mutually agreed upon time and date or options for times and dates to the impacted employee for scheduling a meeting to correct any record flagged during the federal I-9 audit. Employers will also be required to redact personal information of any other employee from documents provided to the impacted employee.

Failure to comply with the law could result in a $500 fine for each violation of notice requirement, which could be doubled if the court finds that the employer willfully violated the law. The law also includes private right of action. If the court finds the employer violated the law, it can award damages up to and including the amount equal to actual damages or statutory damages equivalent to 40 times the hourly Washington state minimum wage.

The Attorney General’s Office has until September 1, 2026, to develop and make available materials for employers regarding employer and employee rights under the bill with outreach efforts for further education and training for employers, businesses, and community members through October 1, 2027.

HB 2345 was passed in response to guidance from the federal Internal Revenue Service (IRS) released in 2025 relating to the taxability of Paid Family and Medical Leave benefits and establishes that medical leave is considered a private insurance program and therefore treated as income. This delineation makes an employer’s medical leave contributions subject to federal income tax, with wages subject to employment taxes. However, family leave is not weighted the same, with employer contributions not subject to employment tax, though the full amount of family leave benefit is subject to income tax. Therefore, the Legislature adjusted employer contribution rates for family and medical leave. The Employment Security Department (ESD) will announce the 2027 premium rate split this fall.

The new rates will not impact 2026 rates and splits. ESD will communicate implementation information to employers later in the year. Check out the ESD website and employer newsletter for up-to-date information.

SB 6014 changes existing law to expand the list of pregnancy-related accommodations for which employers will no longer be able to request or require written certifications from a medical provider. Pregnancy-related accommodations not requiring written documentation are expanded bathroom breaks, readily available access food or drinks, provided seating or allowance for employee to sit more frequently for jobs that require employees stand, and limits on lifting over 17 pounds. The Governor has signed the bill into law, and it goes into effect on January 1, 2027.

Did not pass

HB 1622 would have required public employers to bargain over the business decision to adopt artificial intelligence tools.

HB 2144 would have established notice requirements for employers seeking to electronically monitor employees for performance evaluation purposes.

SB 5882 would have included post-traumatic stress disorder as a presumptive occupational disease for local correctional facility workers.

SB 5972 would have expanded binding interest arbitration for collective bargaining agreements to all uniformed correctional officers employed by cities and counties.