Washington State has enacted the Securing Timely Notification and Benefits for Laid-Off Employees Act (ESSB 5525), which expands employer obligations for providing notice prior to mass layoffs and business closings. The new law applies to private employers with 50 or more employees in Washington (excluding part-time employees) and aligns with, but adds to, federal WARN Act requirements. The law takes effect on July 27, 2025.
Key changes include the following:
60-Day Advance Notice
Employers must provide at least 60 calendar days’ written notice before a business closing affecting 50 or more employees at a single site, or a mass Layoff is not due to closure, affecting 50 or more employees in a 30-day period.
Notices must be submitted to the Washington Employment Security Department (ESD) and affected employees (or their bargaining representatives, if applicable). The notice must include:
- Expected date(s) of job loss and whether it is permanent or temporary.
- Job titles and names of affected employees.
- Contact details for a company representative.
- Whether jobs are being relocated or contracted out.
Limited Exceptions
Employers may be exempt from the 60-day notice requirement under specific conditions, including:
- Natural disasters;
- Unforeseeable business circumstances;
- Certain short-term construction projects; or
- Good faith efforts to obtain capital that would have avoided the layoff.
Importantly, employees currently on Washington’s Paid Family and Medical Leave cannot be included in a layoff notice unless an exception applies.
Penalties for Non-Compliance
Employers who fail to provide the required notice may face up to 60 days of back pay and lost benefits per impacted employee and civil penalties of up to $500 per day, unless timely payments are made to employees.
Next Steps for Employers
To ensure compliance with the law employers should:
- Confirm whether planned reductions meet thresholds for notice;
- Ensure written notices meet state and federal requirements;
- Educate key staff on triggering events and notice deadlines; and
- Evaluate severance plans, transfer offers, and documentation needs.
