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2026 Legislation of Note

Legislation of Note

EMPLOYMENT LAW

Updates from James Crandall, lead on legal affairs, labor & employment law:

  • Banning noncompetes: House Bill 1155, banning all noncompete agreements, is heading to the governor’s desk after passing the Senate along party lines last week. While the Senate adopted one helpful amendment, AWB remained opposed until the end. Throughout the session, we voiced support for the current law that reflects a carefully negotiated compromise reached in 2019, emphasizing that without the availability of narrowly tailored noncompetes, employers may be less willing to invest deeply in employee development.

  • Immigrant worker protections: House Bill 2105, Attorney General Nick Brown’s immigrant worker act, passed the Senate 27-21 Thursday night; Democratic Sens. Claudia Kauffman and Lisa Wellman joined Republicans in voting no. AWB opposed this bill due to the penalty structure that includes a costly private right of action. Lawmakers considered an amendment to restructure the PRA, but unfortunately did not adopt it.

  • Workers’ comp: Senate Bill 5847 passed the House 67-28 Friday. AWB opposed the bill due to concerns about its potential to increase costs within the workers’ compensation system.

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EDUCATION & WORKFORCE

Updates from Emily Wittman, director for education, workforce, child care, health care & federal affairs:

  • Private college grants: Senate Bill 5828, which would restore financial aid for students attending Washington’s private, not-for-profit colleges, is still alive. AWB encourages House lawmakers to pass this bill, which would reverse the effects of last year’s funding cuts. This bill will support students and the independent colleges that produce some of our state’s top talent.

  • Permitting timelines: Unfortunately, a bill to improve timelines for state permitting and licensing is not moving forward this year. Senate Bill 5968, building on Gov. Bob Ferguson’s Executive Order 25-03, did not survive Friday’s cutoff to pass opposite house bills. The bipartisan bill would have required state agencies to publish permit and licensing data, set clear decision deadlines, and refund application fees if deadlines aren’t met. AWB thanks the sponsors of the legislation in the House and Senate, Rep. Adison Richards and Deb Krishnadasan, Democrats from Gig Harbor.

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TAX & FISCAL POLICY

Updates from Max Martin, tax and fiscal policy lead:

  • Business tax amnesty program: House Bill 2615, which temporarily reinstate a business tax amnesty program, is still in play. AWB supports this bill, which will allow businesses to come forward and pay back taxes without facing penalties. The program would give struggling small businesses a clean slate, including those hit with Washington’s steep penalties on unpaid taxes, while bringing in revenue for the state. The Tri-City Regional Chamber of Commerce and Washington Society of Certified Public Accountants both have helpful posts about it.

  • Removing tax exemptions: Two bills that would remove tax breaks were passed out of the House Finance Committee Saturday. Senate Bill 6228 would repeal the preferential B&O tax rate for warehousing and reselling prescription drugs. Senate Bill 6231 would remove an exemption for data center refurbishments. AWB opposes both.

  • Cigarette tax: Senate Bill 6129, which would increase taxes on cigarettes and vaping products, was also up for executive session Saturday, but no action was taken. The bill would have raised the state’s cigarette tax for the first time in 16 years, from $3 per pack of 20 cigarettes to $5. AWB opposed this bill.

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TRANSPORTATION

Updates from Ken Short, lead on transportation, land use and housing:

  • Commercial truck safety: House Bill 2410, sponsored by Rep. Jake Fey, D-Tacoma, aiming to improve the safety of the commercial trucking industry, passed the Senate with broad bipartisan support 47-1. The bill establishes a commercial truck safety and education council and increases the commercial vehicle safety enforcement fee from $16 to $32. AWB supported this bill, which will help strengthen Washington’s trucking workforce and support training for drivers.

  • Employer transportation services: AWB is pleased to see House Bill 1980 pass the Senate by unanimous vote. Sponsored by Rep. Janice Zahn, D-Bellevue, the bill will allow private employer vehicles for transporting employees to access business access and transit-only lanes. The bill, particularly important to Bellevue, would apply to counties with populations of more than two million.

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