Washington’s 2024–2025 legislative session reinforces the state’s leadership in employment … More
Washington lawmakers closed out the 2024–2025 legislative session with a series of bills that directly affect employers operating in the state. The new legislation touches nearly every stage of the employment lifecycle, from job postings and background checks to layoff procedures and personnel file access.
The following measures have been passed by the Washington State Legislature and, with the exception of SB 5408, have already been signed into law by Governor Bob Ferguson. SB 5408, which refines Washington’s pay transparency law, is expected to be signed by May 20, 2025.
Employers should review the legislation closely and begin preparing for the effective dates ahead.
Fair Chance Hiring Reform: HB 1747
Washington’s Fair Chance Act has been significantly amended through HB 1747, imposing new requirements on employers that consider criminal history in employment decisions. The law prohibits policies that categorically exclude individuals based on conviction type, such as blanket bans on all felonies, and instead requires employers to assess the relevance of a conviction on a case-by-case basis.
To proceed with an adverse employment decision based on criminal history, employers must now demonstrate a legitimate business reason for doing so. This includes assessing and documenting how the conviction impacts the specific role. Relevant factors include:
- The nature and severity of the offense.
- The time elapsed since the conviction.
- Evidence of rehabilitation, education, or work experience.
If an employer intends to rely on a criminal record to support a potentially adverse decision, the following steps are required:
- Pre-Adverse Action Notice – The employer must provide written notice identifying the specific criminal record under consideration and inform the applicant or employee that it is being used to assess job eligibility.
- Waiting Period – The position must remain open for a minimum of two business days to allow the individual to respond. Applicants may submit corrections, context, or evidence of rehabilitation, good conduct, training, or experience. Note, the Federal Trade Commission recommends employers hold the position open for at least five business days when using a third-party consumer reporting agency to comply with the Fair Credit Reporting Act. As a result of this discrepancy, employers must reconcile state law and federal guidance.
- Final Adverse Action Notice – If the employer decides to proceed, a final written notice must be issued. This notice must include the employer’s specific reasoning for the decision and documentation of the individualized assessment that led to it.
These obligations apply whether criminal history is obtained internally or through a background check provider.
Effective Date:
- July 1, 2026 for employers with 15 or more employees
- January 1, 2027 for employers with fewer than 15 employees
Employer Takeaways:
- Remove automatic disqualification policies based on conviction categories.
- Implement a documented process for individualized assessments.
- Comply with timing and content requirements for both state and federal pre-adverse action notices.
- Train HR staff on fair chance requirements and maintain supporting documentation.
Driving Requirements and Job Postings: SB 5501
Senate Bill 5501 prohibits employers from requiring a driver’s license as a condition of employment unless driving is an essential function of the job or relates to a legitimate business purpose. The bill targets unnecessary barriers to employment, particularly for applicants with suspended licenses or those who don’t drive due to economic or disability-related reasons.
Effective Date: July 27, 2025
Employer Takeaways:
- Audit job postings for unnecessary driver’s license requirements.
- Clarify when driving is essential to the role or legally required.
- Update job descriptions to reflect accurate qualifications.
Medical Debt and Credit Reporting: ESSB 5480
Engrossed Substitute Senate Bill 5480 prohibits hospitals, physician groups, and collection agencies from reporting medical debt to credit bureaus. Any medical debt reported in violation of this law is void and unenforceable. Violations are enforceable under the Washington Consumer Protection Act and may result in litigation or civil penalties. All medical debt is excluded from Washington credit reports regardless of balance, age, or status.
Effective Date: July 27, 2025
Employer Takeaways:
- Anticipate the absence of medical debt from credit reports used in hiring.
- Review background screening criteria for compliance with new reporting restrictions.
- Use alternative, permissible indicators of financial responsibility when needed.
Employee Access to Personnel Files: HB 1308
House Bill 1308 requires employers to provide former employees with a copy of their personnel file and, upon request, a written statement indicating the employee’s discharge date and the reason for separation. Employers must respond to such requests within 21 calendar days or face penalties for noncompliance.
Effective Date: July 27, 2025
Employer Takeaways:
- Establish procedures to respond to personnel file and separation requests within 21 days.
- Maintain accessible records of discharge decisions.
- Train HR and legal staff on the documentation and response requirements.
Home Care Worker Background Check Reform: HB 1395
House Bill 1395 updates Washington’s background check requirements for individual providers and home care agency workers. The law aims to reduce redundancy in the review process and support more efficient hiring.
Employers are prohibited from initiating a new character, competence, and suitability (CCS) review when a name and date of birth or fingerprint-based background check reveals a previously reviewed “nonautomatically disqualifying conviction” or negative action. A new review is also not required if more than ten years have passed since the last such conviction or action. These provisions help eliminate unnecessary re-reviews.
The law also clarifies that certain older convictions, including second- and third-degree assault, robbery, theft, and extortion, are no longer automatic disqualifiers once a designated time period has passed. Employers may still consider these convictions using a discretionary assessment.
Additionally, qualified applicants may begin working for up to 30 days while awaiting a CCS determination, as long as no automatically disqualifying offenses appear on their background check. Employers must notify clients or their representatives of the provisional status and provide an opportunity to decline services during this period.
Effective Date: July 27, 2025
Employer Takeaways:
- Avoid repeating CCS reviews for findings already assessed or older than 10 years.
- Use discretion when evaluating time-limited offenses.
- Leverage the 30-day provisional employment option, with required client notification.
- Recognize that either type of background check (name and date of birth or fingerprint-based) may trigger the CCS process, but only when the findings are new or fall outside the law’s exemptions.
Mass Layoff Notice Requirements: SB 5525
Senate Bill 5525 establishes Washington’s state-level version of the WARN Act. Employers with 50 or more employees must provide at least 60 days’ advance written notice to affected employees and the Employment Security Department before implementing a mass layoff or business closure. Employers must also notify employee representatives, such as unions.
The law imposes civil penalties and mandates back pay and benefits for noncompliance. It also includes important carveouts: employees on Paid Family or Medical Leave may not be included in a layoff unless specific exceptions apply, and there are limited exemptions for layoffs related to natural disasters, short-term projects, and multiemployer construction work.
Effective Date: July 27, 2025
Employer Takeaways:
- Implement 60-day advance notice procedures for workforce reductions.
- Notify the Employment Security Department and applicable labor representatives.
- Confirm employee leave status before issuing layoff notices.
Pay Transparency Clarification: SB 5408 (Pending Governor’s Signature)
Substitute Senate Bill 5408 amends Washington’s Equal Pay and Opportunity Act (EPOA) to clarify employer obligations amid growing pay transparency litigation. The bill provides a grace period, through July 27, 2027, allowing employers to correct noncompliant job postings within five business days of receiving written notice. If corrected in time, the employer avoids penalties or statutory damages.
The bill also confirms that employers are not liable for unauthorized third-party repostings of job listings. For fixed wage positions, employers may disclose a single wage amount rather than providing a range. In addition, courts may award statutory damages ranging from $100 to $5,000 per violation, taking into account factors such as the employer’s size, the nature of the violation, and the need to deter future noncompliance.
Litigation is ongoing regarding who qualifies as a “job applicant” under the law. The Washington Supreme Court is currently reviewing whether individuals who apply solely to trigger litigation are entitled to damages. The outcome could affect class action exposure for employers.
Effective Date: July 27, 2025 (if signed by May 20, 2025)
Employer Takeaways:
- Create a process to promptly correct flagged job postings during the grace period.
- Align compensation disclosures with clarified wage range requirements.
- Monitor the Washington Supreme Court’s ruling on applicant status and legal exposure.
Parting Thoughts
Washington’s 2024–2025 legislative session reinforces the state’s leadership in employment regulation. With these new laws taking effect over the coming year and a half, employers should begin preparing now. From adjusting job postings and background check protocols to refining layoff procedures and personnel record access, these changes create new compliance risks while also offering opportunities to modernize employment practices.
Employers that act early, by reviewing policies, engaging legal counsel, and coordinating with background screening partners, will be better positioned to navigate these changes confidently. Taking a proactive approach not only helps reduce legal risk but also strengthens fair hiring, pay transparency, and workforce equity across the organization.
