Labor and Commerce advances eight bills, moving noncompete ban, microchipping ban and wage-recovery plan forward

The Senate Labor and Commerce Committee advanced eight bills during its final 2026 executive session, forwarding measures on noncompetition agreements, employee microchipping, workers’ compensation for post‑traumatic stress disorder (PTSD), and a new wage‑recovery program to the next stages of review.

A staff report on Engrossed Substitute House Bill 1155 described the bill as voiding ‘‘all non competition covenants’’ and making them unenforceable regardless of when they were signed or the employee’s earnings. A striking amendment (A), sponsored by Senator Stanford, narrows the bill’s educational‑expense repayment exception to allow written repayment agreements limited to out‑of‑pocket costs, capped to the pro‑rata portion of any 18‑month repayment period and excused if separation was for ‘‘good cause.’’ Amendments A1 and A2 offered by Senator King would exempt transactions to acquire or sell goodwill or ownership interests and would exclude certain senior executives from the blanket ban. The committee adopted the striking amendment by voice vote and recommended the bill for further consideration in Rules.

The panel also moved Substitute House Bill 1570 — which would give certain nonacademic student employees at Western Washington University the right to collectively bargain — to Ways & Means; the staff fiscal note cited an indeterminate cost above $50,000 for the university.

On worker privacy, the committee advanced Engrossed Substitute House Bill 2303, which the staff report said passed the House 87–6. The bill would prohibit an employer from requesting, requiring or coercing an employee to receive an implanted microchip; affected employees would have a civil cause of action rather than an administrative remedy.

Members advanced Substitute House Bill 2405, a pilot program to allow limited workers’ compensation coverage for PTSD treatment. Staff described an early‑treatment window (11 treatments within 90 days of filing a claim, additional sessions if a claim is unresolved, and short‑term post‑closure treatments to maintain functioning). The fiscal note requested for the substitute estimates about $1.2 million in additional short‑term claims costs but projects potential long‑term savings to the workers’ compensation system of $15–30 million by preventing long‑term disability.

The committee approved Second Substitute House Bill 2479 to create a wage‑recovery program and a wage‑recovery account to hold civil penalties and minimum‑wage deposits. Under the program, the Department of Labor & Industries could disburse funds to unpaid low‑wage workers before collecting from employers; workers experiencing immediate economic harm could be advanced up to 85% of anticipated unpaid wages up to $2,500, and the bill would require L&I to publish a written process for prioritizing investigations.

Other bills advanced include House Bill 1941 (a striking amendment allowing cannabis producers to form associations or cooperatives but limiting any single cooperative to representing no more than three producer licenses), House Bill 1526 (allowing snack‑bar liquor license holders to sell wine by the glass, with a technical statutory correction in striking amendment C), and Engrossed Substitute House Bill 2476 (letting the Liquor and Cannabis Board issue a spirits/beer/wine theater license for screens with up to 200 seats, with required control plans where minors are allowed). Most measures were recommended to the Rules Committee; the collective bargaining and wage‑recovery bills were sent to Ways & Means where fiscal impacts will be examined.

Votes were taken by voice; the clerk recorded each measure as having ‘‘passed subject to signatures.’’ The committee did not record roll‑call tallies in the transcript; where the House vote count was cited in staff reports, those figures were included (for example, HB 1155 was reported as having passed the House 65–29, HB 2303 as 87–6, HB 2405 as 90–1, and HB 2479 as 94–0). Where the committee’s action was a committee recommendation, the transcript records the committee’s voice approval and referral instructions (Rules or Ways & Means).

On the record, Vice Chair Senator Steve Conway reflected on his service to the committee, saying, "I have served on this committee for 34 years," and thanked nonpartisan and caucus staff by name for their work preparing and amending bills. The chair adjourned the meeting and noted an informal work session would follow.

Next steps: these measures will proceed to the committees named in the referrals (mostly Rules or Ways & Means) for further consideration; fiscal notes and any required adjustments will be reviewed in those committees.