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Legislative Update: Washington SB 5041

by Legislative Update 1 min read June 13, 2025

Washington SB 5041 Change Notification

This measure revises the eligibility to receive unemployment benefits for an individual relating to a lockout by his or her employer and a multiemployer bargaining unit. Employees will now be eligible to collect benefits during a trade dispute.

This measure provides that if an individual receives benefits under this title while being unemployed due to a strike at the separating employer’s factory, establishment, or other premises and the individual subsequently receives retroactive wages from the separating employer for any week for which he or she received benefits under this title, the Department will issue an overpayment assessment to recover the corresponding benefits.

Effective Date

Immediately


Washington Senate Bill 5041 Implication to Stakeholders

For employers with union employees in Washington, this could be quite expensive because those benefits would be paid out of their unemployment tax account. These additional charges could cause employers’ rates to increase and deplete the state’s unemployment trust fund balance further than it already is.

Recommended Action

Affected employers could write to the Governor of Washington expressing their concern. Beyond that, employers should be on alert to how the state will administer this since there’s also the issue of claimants being able, available and actively seeking work, which is not addressed in this bill.

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The Experian Employer Services Insights blog focuses on providing updates and solutions for HR teams, business owners, tax pros and compliance officers looking to navigate complex regulatory landscapes while optimizing their workforce management processes. Some important topics include payroll tax, unemployment, income & employment verification, compliance, and improving the overall employee experience.