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WashingtonHB 24792025-2026 Regular SessionHouseWALLET

Concerning the recovery of unpaid wages.

Sponsored By: Mary Fosse (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 3 benefits, 0 costs, 3 mixed.

Funding the wage recovery account

The law creates a wage recovery account held by the state treasurer. Civil penalties and money the department collects from assigned wage claims are deposited into this account. Penalties from coercion cases also go into the account. The account receives its share of monthly investment earnings. Related state investment provisions tied to this system expire July 1, 2030 (section 5) and take effect July 1, 2030 (section 6).

Penalties for coercion tied to wages

Workers can file a coercion complaint within 180 days. The department must investigate and issue a citation or closure within 90 days, unless extended for good cause. Penalties per coercive act are up to $1,000 for the first, up to $5,000 for the second, and up to $10,000 for later violations. These penalties are adjusted for inflation every three years starting July 1, 2028. The department keeps complainant personal information confidential.

Early cash help for unpaid workers

The department administers a wage recovery program to give short‑term cash to unpaid low‑wage workers. Beginning July 1, 2028, or when the account has at least $130,000 (whichever is later), you qualify only if the department finds your complaint has merit, you assign your claim to the department, you request funds, your last‑12‑month earnings are under the rule limit, you attest to immediate economic harm, and you waive appeal and any private lawsuit. The department prioritizes payments by need and risk. You can get up to 85% of expected wages, capped at $2,500. Each year, total program payouts cannot exceed 80% of the prior year’s account balance. Payments are discretionary, not an entitlement, and you cannot collect the same claim on your own after a disbursement.

Faster, clearer wage complaint process

The department may investigate wage complaints and must publish how it sets priorities, including harm, severity, number of workers, and retaliation risk. When it accepts a complaint, it must issue a citation or a compliance finding within 60 days, with written notice for any extension. It must send decisions to both sides using trackable delivery. The department can expand an investigation and can combine related cases against the same employer. It cannot investigate violations more than three years before the filing date. If it finds wages were not paid, it can order all wages plus 1% interest per month, limited to the three‑year lookback. For complaints filed on or after January 1, 2024, pre‑citation settlements must include 1% monthly interest unless the worker asks to waive or reduce it. Filing a complaint pauses the time limit to sue until the department resolves or declines the case. If the employer pays and the worker accepts the assessed wages and interest, the claim is fully settled and the worker cannot sue on those same issues.

Higher penalties with employer safe harbors

For willful wage violations, the civil penalty is at least $1,500 or 10% of unpaid wages, whichever is higher. Starting January 1, 2030, the base penalty rises with inflation every three years. The department sets penalties using a rule‑based matrix that weighs number of workers, seriousness, employer size, good faith, fix speed, and past violations. The director may waive a penalty if the employer is not a repeat willful violator, has not resolved more than one complaint in 12 months or three in 24 months, and pays all wages plus 1% interest within 10 business days of the citation. No penalty applies if the employer reasonably relied on an official rule, a written director decision, or a filed administrative policy. The old repeat‑willful‑violator penalty statute is repealed.

Public reporting on wage recovery program

The department reports each year on the wage recovery program. The report lists account balances and receipts, payouts, how many workers were paid, types of immediate harm, employer recoveries, appeals, and payments that hit the 85% cap. A joint legislative committee reviews the program by June 30, 2034 (not sooner than five years after payments begin) and reports by December 1, 2035. The review authority ends July 1, 2036.

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Sponsors & Cosponsors

Sponsor

  • Mary Fosse

    Democratic • House

Cosponsors

  • Alex Ramel

    Democratic • House

  • Beth Doglio

    Democratic • House

  • Chris Stearns

    Democratic • House

  • Dan Bronoske

    Democratic • House

  • Edwin Obras

    Democratic • House

  • Gerry Pollet

    Democratic • House

  • Greg Nance

    Democratic • House

  • Janice Zahn

    Democratic • House

  • Julio Cortes

    Democratic • House

  • Lisa Callan

    Democratic • House

  • Lisa Parshley

    Democratic • House

  • Liz Berry

    Democratic • House

  • Nicole Macri

    Democratic • House

  • Osman Salahuddin

    Democratic • House

  • Roger Goodman

    Democratic • House

  • Suzanne Schmidt

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 143 • No: 0

Senate vote • 3/4/2026

3rd Reading & Final Passage

Yes: 49 • No: 0

House vote • 2/13/2026

3rd Reading & Final Passage

Yes: 94 • No: 0 • Other: 4

Actions Timeline

  1. Effective date 6/11/2026*.

    3/14/2026House

  2. Chapter 53, 2026 Laws.

    3/14/2026House

  3. Governor signed.

    3/14/2026legislature

  4. President signed.

    3/6/2026legislature

  5. Delivered to Governor.

    3/6/2026legislature

  6. Speaker signed.

    3/5/2026legislature

  7. Third reading, passed; yeas, 49; nays, 0; absent, 0; excused, 0.

    3/4/2026House

  8. Rules suspended. Placed on Third Reading.

    3/4/2026House

  9. Placed on second reading by Rules Committee.

    3/3/2026House

  10. Minority; without recommendation.

    3/2/2026House

  11. WM - Majority; do pass.

    3/2/2026House

  12. Passed to Rules Committee for second reading.

    3/2/2026House

  13. Referred to Ways & Means.

    2/25/2026House

  14. Minority; do not pass.

    2/24/2026House

  15. And refer to Ways & Means.

    2/24/2026House

  16. LC - Majority; do pass.

    2/24/2026House

  17. First reading, referred to Labor & Commerce.

    2/17/2026House

  18. Third reading, passed; yeas, 94; nays, 0; absent, 0; excused, 4.

    2/13/2026House

  19. Rules suspended. Placed on Third Reading.

    2/13/2026House

  20. 2nd substitute bill substituted.

    2/13/2026House

  21. Rules Committee relieved of further consideration. Placed on second reading.

    2/12/2026House

  22. Referred to Rules 2 Review.

    2/9/2026House

  23. APP - Majority; 2nd substitute bill be substituted, do pass.

    2/7/2026House

  24. APP - Executive action taken by committee.

    2/7/2026House

  25. Referred to Appropriations.

    2/3/2026House

Bill Text

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