New unemployment-insurance laws hold Washington employers accountable - July 18, 2007

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Media contact: Hilary Young, 360-902-9454

Audio: http://fortress.wa.gov/esd/portal/info/newsroom/audiofiles/audio/

OLYMPIA – Beginning Sunday, new laws will take effect that will hold Washington employers more accountable for their unemployment-insurance costs.

Senate Bill 5373, parts of which take effect July 22, is the latest in a series of reforms that prevents employers from pushing their unemployment costs onto other businesses. Specifically, the new law holds employers responsible for unemployment benefits paid to their workers if the benefits were paid due to an error on the employer’s quarterly tax reports. 

The new law also holds officers of a corporation and members of a limited liability company personally responsible for unemployment taxes if business assets were hidden to avoid the tax bill. Under previous law, other employers had to cover those costs.

“It’s fundamental to the unemployment-insurance system that employers pay their fair share, not too much or too little,” said Employment Security Commissioner Karen Lee. “These changes are key to creating a system that is fair and stable for Washington businesses and their workers.”

Two other bills that become law on July 22 will affect theater companies and religious organizations.

Under Senate Bill 5534, small performing-arts companies will no longer pay unemployment taxes for people who participate in productions and who earn a stipend of no more than $600 per year to cover travel, child care, meals or other expenses. The law applies only to companies with three or fewer employees on any day of the year and includes actors, lighting technicians, costume designers and people who perform similar services for the production.

Under Senate Bill 5702, churches and religious organizations must notify employees that they may not be eligible for unemployment benefits if they lose their jobs. The Employment Security Department has sent notices to these employers, including a poster for employee bulletin boards. The law applies only to organizations that are operated primarily for religious purposes and that are operated, supervised, controlled or principally supported by a church or a convention or association of churches.

In response to House Bill 2010, Employment Security also is developing a plan to quickly verify that potential public-works contractors are registered with the department.

Web Links
SB 5373, Session Law

SB 5534, Session Law

SB 5702, Session Law

Church posters

Employment Security Department