This bill introduces a new section to chapter 50.20 RCW regarding unemployment insurance benefits for individuals who are laid off or separated from their jobs due to employer-initiated workforce reductions. Effective June 14, 2026, individuals who are separated under specific conditions will be considered unemployed through no fault of their own. The criteria include the employer's written announcement of a planned layoff, the employee's voluntary offer to be included in the layoff, and the subsequent termination of employment as a result of the layoff.

Additionally, the bill allows separating employers to permit employees to rescind their offers to be included in the layoff without disqualifying them from receiving unemployment benefits, as long as the separation meets the outlined requirements. However, the provisions of this section do not apply if the employer modifies benefits or encourages early retirement or separation without adhering to the specified criteria.