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Senate bill would let ESD waive minor payroll-reporting penalties for employers

Washington State Senate Labor and Workplace Standards Committee · February 18, 2026
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Summary

Substitute SB 58-74 would let the Employment Security Department waive penalties for minor or inadvertent errors in quarterly unemployment-insurance payroll reports, a change sponsors say would protect small businesses that have been assessed fines tied to job-coding errors.

A Washington Senate committee heard testimony on substitute Senate Bill 58-74 on Feb. 18, which would permit the Employment Security Department to waive penalties for minor or inadvertent errors on employers’ quarterly unemployment-insurance payroll reports. The change is aimed at small businesses that prosecutors and sponsors say have paid disproportionate fines for administrative mistakes.

Sen. Drew McKeown (35th District), the bill’s prime sponsor, told the Labor and Workplace…

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