Washington State Director Patrick Connor reports from Olympia on the legislative week ending January 24

— “It’s a cash grab that will raise workers’ comp taxes, plain and simple.”

— “Reports show Washington employers and patients are paying $218 million more for health insurance”

Week 2 of the 2026 Washington state legislative session has NFIB now tracking 245 bills affecting small businesses during this short, 60-day session.

Small Business Day

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

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

Millionaire Tax

NFIB received a draft of the so-called Millionaire Tax bill this week. The 47-page bill details a new income tax system, but it omits any mention of the tax relief Gov. Bob Ferguson mentioned in his State of the State address. NFIB will begin collecting member feedback for legislative leadership.

Labor

NFIB engaged on several labor bills this week, many were the companion to legislation discussed in last week’s report.

We testified opposed to SB 6152, adding physical and occupational therapists as attending providers in the state-run workers’ compensation system.

— NFIB also opposed HB 2471 and SB 6117, which would allow unionizing small businesses under the state’s Public Employment Relations Commission (PERC) through card check (also called cross check). We also signed in opposed to HB 2409 and SB 6045, which would allow unionizing farm workers through that same process and agency.

— Leadership Council Chair Lois Cook joined NFIB Small Business Legal Center executive director Beth Milito and Washington State Director Patrick Connor in testifying against the Senate’s version of the Attorney General’s immigrant worker protection act., SB 5852. In response to NFIB’s and other testimony, the AG’s office circulated two new revised drafts of the bill this week. NFIB submitted additional written comments. We remain opposed.

— We testified against HB 2372 and SB 6067, companion bills that would add $500 million in new workers’ compensation benefits over six years under the guise of continuing employer-sponsored health insurance coverage to injured workers and their families. As we did last year, NFIB pointed out the bills contain absolutely no mechanism or requirement for the added time loss benefits to actually go toward health insurance premiums. It’s a cash grab that will raise workers’ comp taxes, plain and simple.

— Finally, we testified in support of HB 2479. NFIB co-chaired the L&I wage recovery workgroup upon whose recommendations the bill is based. If enacted, the bill would create a wage recovery fund from which qualifying low-wage workers could receive an advance against a wage theft complaint. The program would be funded primarily through penalties assessed on employers who intentionally underpay or withhold pay from workers. These fines will increase for the first time in 15 years. This looks to be one of the few bills this session where employers and worker advocates are in complete agreement.

Health Care

NFIB focused on two health care affordability and transparency issues this week:

— HB 2283, increasing the medical loss ratio (MLR). This bill, supported by NFIB, the medical association, and patient advocates, is based on a report commissioned by the Office of the Insurance Commissioner. That report indicates health insurance premiums could drop 1 – 2.5%, rebates to policyholders could increase, or medical provider reimbursements could increase, and some $144 million in additional tax revenue for the state could result over four years. It will be a challenge getting the bill out of committee given the resistance we anticipate from health insurers.

— We also participated in stakeholder meetings and testified against HB 2145 and SB 5981, which would hide hospital spending information and allow unlimited contracting with pharmacies anywhere in the world through hospital 340b programs. This federal drug discount program has grown from $5 billion in 2010 to $81 billion in 2024. Reports show Washington employers and patients are paying $218 million more for health insurance due, in part, to prescribing patterns and abuses in the program, loss of pharmaceutical rebates, and hospital cost-shifting to commercial health plans.

Week 3 Preview

Next week will see more committee time devoted to executive sessions where bills are amended and moved to either the chamber’s Rules Committee or one of its fiscal committees. The deadline for policy bills to advance to Rules or a fiscal committee is Wednesday, February 4.

This is shaping up to be a difficult session for small business. Please consider joining us in person, in Olympia, February 18, for NFIB Small Business Day at the Capital. The Voice of Small Business needs to be heard, loud and clear.

NFIB is calling on its members to help with several bills scheduled for public hearing in Week 3. next week. Follow the links to sign-in on these crucial bills.

— Senate Labor & Commerce – SHR 1 and Virtual J.A. Cherberg – 1/26 @ 10:30am
SB 5882 — Concerning industrial insurance coverage for PTSD affecting local correctional facility workers. (CON)

— House Finance – HHR A and Virtual JLOB – 1/27 @ 8:00am
HB 2292 — Concerning taxation of a long-term capital gain of a section 1202 small business stock. (CON)

— Senate Labor & Commerce – SHR 1 and Virtual J.A. Cherberg – 1/27 @ 10:30am
SB 6180 — Removing qualifiers related to the presumption of occupational disease for heart problems. (CON)

— House Labor & Workplace Standards  – HHR D and Virtual JLOB – 1/27 @ 10:30am
HB 2524 — Establishing the state security guards industry standards board. (CON)
HB 2611 — Reducing the standard workweek from 40 hours to 32 hours. (CON)

— Senate Ways & Means – SHR 4 and Virtual JACB – 1/27 @ 4:00pm
SB 6229 — Concerning taxation of a long-term capital gain of a section 1202 small business stock. (CON)

Prior Legislative Reports

January 19—Washington Legislature Opens 2026 Session