Washington bill makes relief of benefit charges easier for employers

Bill 1898 Benefit Charging Clean-up

Washington bill makes relief of benefit charges easier for employers

A new bill aims to make it easier for taxable employers to better understand relief of benefit charges.

House Bill 1898, signed by Gov. Jay Inslee on March 13, clarifies complex, out-of-date or difficult-to-understand language in certain statutes that mention benefit charges.

Most employers contribute to the Unemployment Insurance Trust Fund through payroll taxes in order to pay unemployment benefits to their employees. But some parts of the statutes that mention benefit charges are confusing. This bill, proposed by the Employment Security Department, helps clear up certain sections.

Bill clarifies relief of benefit charges

HB 1898 clarifies what employers in certain circumstances should now expect.

For example, employers do not need to file a request to receive some types of relief from benefit charges. This could include benefits paid:

• To an individual who was later determined to be disqualified or ineligible for those benefits.

• Under the temporary total disability statute (Chapter 50.06 RCW).

• That represent the state’s share of extended benefits (RCW 50.22.010(6)).

This also could include when ESD has determined the separation was necessary to protect against domestic violence or stalking. Other examples where ESD will provide relief of benefit charges are when:

• The claimant left work to enter an approved apprenticeship program.

• The job separation was necessary because of the illness or disability of the claimant or a member of the claimant’s family.

• The claimant left work due to inaccessibility of care for a child or vulnerable adult.

• The claimant met certain requirements during a public health emergency.

• The claimant left work to relocate to follow a minor child.

Ineligible or disqualified employees

Per HB 1898, employers will also receive relief of benefit charges when ESD later finds an individual is either ineligible or disqualified after benefits were paid.

This allows ESD to consider eligibility factors and situations when the claimant disqualifies themselves from benefits, such as when they admit to being fired for misconduct on their initial application.

Relatedly, employers with a history of failing to respond to requests from the ESD will not receive relief of charges when it is later discovered a claimant was ineligible or disqualified.

Other situations

The bill allows certain relief of charges to all employers that a claimant worked for during the claimant’s base year, rather than limiting them to the employer the claimant worked for at the time of the separation. Other changes include:

• ESD may also waive the 30-day deadline to request relief of charges if the employer shows good cause.

• A technical correction to a cross reference that was changed by House Bill 1570 (2023).

To view more photos from the signing, visit Employment Security Department’s Flickr webpage.