The proposed bill addresses the impacts of mass layoffs, relocations, and terminations in Washington State by requiring employers to provide a 60-day written notice before such actions. This notice must detail the reasons for the decision and any alternative measures considered. The bill defines key terms such as "covered establishment," "mass layoff," and "termination," and mandates notifications to affected employees, the employment security department, local government officials, and exclusive bargaining representatives. It also introduces penalties for non-compliance, including financial liabilities for lost wages and benefits, as well as daily fines for each day of violation. Additionally, the bill emphasizes support for affected employees by requiring access to rapid response partners and the development of an online survey to collect demographic data on those impacted.

Moreover, the bill seeks to prohibit certain nondisclosure and nondisparagement provisions in employer-employee agreements, particularly regarding workplace conduct and mass layoffs. It establishes that any provision preventing an employee from discussing an employer's conduct related to a mass layoff as a condition for severance pay is void and unenforceable. The bill also amends laws on noncompetition covenants, making them void unless specific conditions are met, and adds that such covenants are unenforceable if an employee is terminated due to a mass layoff without proper notice. It includes a retroactive clause to invalidate certain nondisclosure agreements created before June 9, 2022, and clarifies that the provisions will take effect on July 1, 2026.

Statutes affected:
Original Bill: 49.44.211, 49.62.020
Substitute Bill: 49.44.211, 49.62.020