New legislation mandates 60-day notice for mass layoffs and business closures

On January 27, 2025, Washington State introduced Senate Bill 5525, a legislative proposal aimed at enhancing job security for employees facing potential business closures or mass layoffs. The bill mandates that employers provide a 60-day written notice to both the state department and affected employees, or their union representatives, before initiating such actions. This requirement seeks to ensure that workers have adequate time to prepare for employment loss and explore alternative options.

Key provisions of the bill include stipulations for employers who have previously conducted short-term layoffs. If a layoff initially expected to last three months extends beyond that period due to unforeseen circumstances, employers must notify affected parties as soon as it becomes apparent that an extension is necessary. Additionally, in cases of business sales, the seller is responsible for notifying employees of any impending layoffs up to the sale's effective date, while the buyer must inform employees of any layoffs occurring afterward.

The bill aligns with the federal Worker Adjustment and Retraining Notification (WARN) Act, requiring that notices include specific details such as the location of the employment site, the nature of the planned action (permanent or temporary), the expected date of job losses, and the job titles of affected positions.

While the bill has garnered support for its potential to protect workers during economic downturns, it has also faced criticism from some business groups. Opponents argue that the additional notice requirements could hinder employers' flexibility in responding to rapidly changing market conditions. Proponents, however, emphasize the importance of providing employees with sufficient time to seek new employment or retraining opportunities.

The implications of Senate Bill 5525 are significant, as it addresses the growing concern over job security in an unpredictable economic landscape. Experts suggest that if passed, the bill could lead to a more stable workforce and potentially reduce the economic impact of sudden layoffs on communities. As the legislative process unfolds, stakeholders from various sectors will be closely monitoring the bill's progress and its potential effects on both employees and employers in Washington State.