FINAL BILL REPORT

SHB 2308

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

C 334 L 20

Synopsis as Enacted

Brief Description: Requiring employers to periodically report standard occupational classifications or job titles of workers.

Sponsors: House Committee on Appropriations (originally sponsored by Representatives Slatter, Tharinger, Wylie and Appleton).

House Committee on Labor & Workplace Standards

House Committee on Appropriations

Senate Committee on Labor & Commerce

Senate Committee on Ways & Means

Background:

Employment Security Department Reports.

The Employment Security Department (ESD) administers the state's unemployment benefits program. Employers must file tax reports with the ESD every quarter. The reports must contain the name of all employees covered by unemployment insurance, their social security numbers, their wages, and the number of hours worked in the quarter.

Employers may file electronically or use paper forms. An employer is subject to escalating penalties for failing to file a report or for filing an incomplete report. The ESD issues a warning letter for the first violation. For subsequent violations, the penalties range from $75 to $250.

Workforce Training and Education Coordinating Board.

The ESD has data-sharing agreements with the Workforce Training and Education Coordinating Board (Workforce Board). The Workforce Board matches student-level records with the ESD's wage records to evaluate performance outcomes for a number of workforce and postsecondary education programs.

Standard Occupational Classification.

The Standard Occupational Classification (SOC) system is a federal system used by federal agencies to classify workers into occupational categories.

Summary:

Employers must include the SOC or job title of each worker in their quarterly tax reports to the ESD. Reporting the SOC or job title of each worker is optional for employers until October 1, 2022.  

An employer whose filing is incomplete due to failing to include SOCs or job titles must pay an incomplete report penalty only if the employer knowingly failed to report the SOC or job title of each worker.

The ESD, in coordination with the Workforce Board, must report to the Legislature and the Governor by November 1, 2026, on how the collection of occupational data was used to evaluate educational investments, add or modify existing training programs, or improve job placement.

Votes on Final Passage:

House

60

38

Senate

34

14

Effective:

October 1, 2021