This bill introduces a new section to chapter 50.20 RCW regarding unemployment insurance benefits for individuals who are separated from their employment due to employer-initiated layoffs or workforce reductions, effective for separations occurring on or after June 14, 2026. It establishes that individuals who voluntarily offer to be included in a layoff or reduction in force, initiated by their employer, will be considered unemployed through no fault of their own, provided certain conditions are met. These conditions include the employer's written announcement of the layoff plans and the individual's acceptance of the layoff offer.

Additionally, the bill allows separating employers to permit employees to rescind their layoff offers without disqualifying them from receiving unemployment benefits, as long as the separation meets the outlined criteria. However, the provisions do not apply if the employer modifies benefits or encourages early retirement or separation without adhering to the specified requirements. This legislation aims to provide clarity and support for workers affected by layoffs while ensuring that the process is fair and transparent.