WashingtonSB 60192025-2026 Regular SessionSenateWALLET

Improving the functioning of home care rate statutes.

Sponsored By: Annette Cleveland (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 1 costs, 2 mixed.

Protected health and training funds for workers

Washington’s home care labor rate includes dedicated health benefit and training funds that employers cannot shift to other uses. The health benefit share pays only for individual providers’ health care benefits. Consumer directed employers must reserve a specific hourly amount for provider training, testing, and certification. Home care agencies must also use their training share only for those activities and related administration, scheduling, and compliance. The law does not set the dollar amount of an individual worker’s benefits.

Home care agencies must prove proper spending

Beginning July 1, 2027, the state department or its designee must check that home care agencies spend rate funds as required. Each agency must provide either an independent audit by a qualified, accredited firm or written confirmation from its workers’ exclusive bargaining representative. The department can create temporary exemptions for extraordinary circumstances that prevent an agency from complying. Exemption rules must use objective criteria and go through public notice and comment.

Home care operating funds face rate caps

Home care administrative rates fund essential operations, including licensing, tax compliance, business taxes on wage increases, electronic visit verification, and protective equipment. A consumer directed employer’s administrative share cannot exceed 20% of its combined labor and administrative rates; an agency’s share cannot exceed 20% of its projected total payment rate. Starting the year after the initial rate is set, and every even-numbered year thereafter, the board must try to propose labor and administrative rates, identify health and training amounts, and review projected agency compensation funding. If voting members do not agree on a labor rate before August 1, the chair joins the decision; without agreement before September 1, the chair decides alone. The department sets unresolved administrative rates if the board does not agree before August 1, within the same caps. Between board sessions, the department can adjust rates only for required tax, employer contribution, mileage, or overtime costs; significant legal changes affecting operations; or the agency administrative cap. Each adjustment is limited to 2% of combined labor and administrative rates, and rate increases require adequate legislative funding.

New funding rules for home care pay

Effective June 11, 2026, Washington changes how it funds home care workers’ pay and benefits. In fiscal year 2027, the state department sets the worker compensation share of the statewide home care agency payment rate. Starting in fiscal year 2028, that share increases by the required yearly amounts. The department converts compensation changes into funding per 15 minutes of care and updates that amount quarterly without counting costs twice. The calculation includes wages and legally required overtime, paid leave, mileage, training, health benefits, retirement contributions, required employer taxes and premiums, and non-billable time such as travel. Changes in this funding are reserved for worker wages, benefits, and required employer contributions or premiums. The law also removes the old initial-rate rule tied to the governor’s agreement with Service Employees International Union 775 and added legally required labor costs. It removes the required one-time transfer of unclaimed paid time off funds and related payment obligations to the consumer directed employer, without stating where they go instead. Employers still set individual pay and benefits within legal limits, legislative funding, and union agreements; the law sets no individual pay increase.

Sponsors & Cosponsors

Sponsor

Annette Cleveland
Democratic • Senate

Cosponsors

Javier Valdez
Democratic • Senate
Jessica Bateman
Democratic • Senate
Liz Lovelett
Democratic • Senate
Manka Dhingra
Democratic • Senate
Marcus Riccelli
Democratic • Senate
Mike Chapman
Democratic • Senate
Paul Harris
Republican • Senate
Yasmin Trudeau
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 145 • No: 0

House vote • 3/4/2026

3rd Reading & Final Passage

Yes: 96 • No: 0 • Other: 2

Senate vote • 2/11/2026