State Director Patrick Connor reports from Olympia on the legislative week ending January 31

Policy committees largely shifted from public hearings to executive sessions as Week 3 ended, working to advance bills to either their chamber’s Rules Committee or a fiscal panel in advance of the February 4 policy committee cut-off.

Small Business Day

NFIB will host its annual Small Business Day at the Capitol on Wednesday, February 18. The event, including lunch, is free. An RSVP is required. Reserve your spot here today.

Guest speakers include:

• Senate Republican Leader John Braun
• Rep. Alicia Rule, House health care vice chair and sponsor of NFIB’s MLR bill
• Rep. Suzanne Schmidt, House labor committee ranking member
• Rep, Janice Zahn, Assistant majority whip (tentative)

For more information, contact Stacy Jenkins at 360-870-7749.

Here’s an overview of key bills NFIB is actively working.

Labor

HB 2105, SB 5852—Immigrant Worker Protection Act.
NFIB and other business groups are still working with the Attorney General’s Office (AGO) to improve the bill. To their credit, the AGO has made several clarifications and a few concessions; however, the penalty structure remains oppressive and the private right of action, which allows workers or third parties to sue employers over alleged violations, keeps NFIB firmly in the opposed camp. Please sign-in CON for the House Appropriations hearing this week. Senate Ways & Means has not yet scheduled 5852 for hearing.

HB 2372, SB 6067—Workers’ compensation benefit increase.
Both bills passed their chamber’s labor committee and were sent to their respective fiscal committees. NFIB opposes the pair, which would add $500 million in new costs over six years, according to L&I estimates. Moreover, while billed as a way to help injured workers maintain employer-sponsored health insurance while off the job due to injury or occupational disease, the bills do not contain any requirement or mechanism for those added benefit dollars to actually be applied to a worker’s health insurance policy. It’s a half-billion benefit increase, plain and simple. The bills have not yet been scheduled for hearing in House Appropriations or Senate Ways & Means. NFIB expects to testify against the bills.

HB 2471, SB 6117—NLRB “trigger” bills.
This pair of bills is intended to grant the state Public Employment Relations Commission authority to step in and regulate unionization and related activities if the National Labor Relations Act or its enforcing agency, the National Labor Relations Board, is repealed or deemed unconstitutional. NFIB testified against both bills, pointing out that, as drafted, each would subject small businesses to the state unionization process, which could be accomplished through card check (or cross-check). The bills have been amended to remove those businesses not already subject to the NLRA/NLRB. NFIB appreciates the clarification but remains opposed since card check would be allowed for all employers with 50 or more employees.

HB 2479—Wage Recovery Fund.
This bill, resulting from a workgroup co-chaired by NFIB, won unanimous approval by the House Labor & Workplace Standards Committee on Friday. If enacted, the bill would establish a wage recovery fund at the Department of Labor & Industries to provide partial prepayment of wages owed to workers filing wage complaints. The program would be funded by higher penalties on employers committing wage theft. The bill is expected to be referred to House Appropriations where NFIB is eager to testify about the absurd fiscal note L&I attached to the bill the night before its vote in committee. NFIB supports the bill.

HB 2218, SB 5847—Weakening workers’ comp medical provider network.
L&I is negotiating with both labor and employer groups, seeking compromise on this trial lawyer and union-backed bill that would largely shred the department’s workers’ comp medical provider network. NFIB opposes the bill. The Senate version won committee approval; the House bill is scheduled for a vote next week. NFIB remains opposed at this point but is monitoring negotiation progress.

SB 6152—Making physical and occupational therapists attending providers for workers’ compensation claims.
NFIB previously testified against this bill and its House companion. With their limited scope of practice, PTs and OTs lack the ability to prescribe medication or treat surgical needs of injured workers. Allowing them to be attending providers would likely require longer wait times due to referral requirements to medical doctors or surgeons, delaying necessary care, driving up costs, and keeping workers off the job longer than necessary. The House bill appears stalled in the House Labor Committee. The senate bill passed its labor committee on a party-line vote. The senate bill may be headed to Ways & Means given its $1.5 million price tag.

Health Care

HB 2145, SB 5981—These 340B drug program bills advanced to their respective fiscal committees. The explosion of this program in recent years is costing Washington employers $218 million in higher health insurance rates. The bills would hide hospital spending information and allow unlimited contracting with pharmacies anywhere in the world, allowing these costs and our premiums to continue to rise unabated. Sign-in CON to support NFIB’s position for Thursday’s Ways & Means hearing and Friday’s hearing in House Appropriations.

HB 2283, the Patient Premium Value Act, which would limit health insurer’s profit and overhead to 10%, requiring 90% of your premium dollars to be spent on actual medical services, passed the House Health Care & Wellness Committee, 12-5, Friday morning. The bill was introduced by Rep. Alicia Rule in the House and Sen. Vandana Slatter in the Senate at NFIB’s request. Rep. Rule will be discussing the bill at our upcoming Small Business Day.

Regulatory

In addition to the Immigrant Worker Protection Act, a trio of other bills granting the Attorney General sweeping new or expanded powers continues to advance despite NFIB’s objections.

• HB 2156, AGO investigator authority was sent to House Rules.
• HB 2161, SB 5925, AGO investigation powers, passed its House policy committee and is awaiting referral. Companion SB 5925 is slated for approval in Senate Law & Justice on Tuesday morning.

Tax & Fiscal

NFIB partnered with the tech industry association last week in testifying against HB 2292 and SB 6229, which would impose Washington’s capital gains tax on the sale of Sec. 1202 small business stock. These stock sales are exempt from federal capital gains and are typically used in the tech sector by startups and fledgling companies to secure venture capital or other investments and entice key personnel to join the firm with stock options as part of the compensation package. These are often longshot investments which take years to realize, if ever. Subjecting these earnings to a nearly 10% tax would push startup founders and investment dollars out of state.

Prior Legislative Reports

January 19—Washington Legislature Opens 2026 Session

January 25—No Small Business Relief in Millionaire Tax Bill