ESSB 5915

SENATE BILL REPORT
ESSB 5915

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.

As Amended by House, April 4, 2007

Title: An act relating to unemployment and industrial insurance notices required to be posted by employers.

Brief Description: Providing unemployment and industrial insurance notices to employers.

Sponsors: Senate Committee on Labor, Commerce, Research & Development (originally sponsored by Senators Honeyford, Clements, Kohl-Welles and Roach).

Committee Activity: Labor, Commerce, Research & Development: 2/26/07, 2/27/07 [DPS].

Majority Report: That Substitute Senate Bill No. 5915 be substituted therefor, and the substitute bill do pass.Signed by Senators Kohl-Welles, Chair; Keiser, Vice Chair; Clements, Ranking Minority Member; Franklin, Hewitt, Holmquist, Murray and Prentice.

Background: In 1997, the Legislature created the Business License Center, within the Department of Licensing, to provide a single location where businesses may apply for a master license.

Currently, an employer may file for a master application in person, or on-line. The employer is required to check a box on the form if he or she will be hiring employees. Checking this box triggers a notice to the Departments of Labor and Industries (L&I) and Employment Security (ESD) to open an account for the employer, as well as send a packet of information on unemployment insurance tax and industrial insurance tax.

Summary of Engrossed Substitute Bill: When an employer registers to pay unemployment taxes, the ESD is required to send to the employer any printed material the department requires the employer to post.

When an employer registers to pay industrial insurance taxes, L&I is required to send to the employer any printed material the department requires the employer to post.

Both L&I and ESD are required to send a copy to each employer anytime the printed material has substantive changes in the information.

Workers are required to provide written notice of workers' compensation claims to employers within ten days of the date the worker receives medical treatment. L&I is required to develop forms to assist the worker in notifying his or her employer of a claim.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: A business may be assessed a penalty if they do not post the required information for L&I. There are companies making money by offering to send all the required printed posters for a fee to employers. The forms are free and should be provided to all employers by the state. When an update or a change occurs in the printed materials, all employers should receive a copy.

OTHER: The current system of sending out the notices is okay; however, if there is a change in the notice, it needs to be sent out.

Persons Testifying: PRO: Senator Honeyford, prime sponsor; Gary Smith, Independent Business Association.

OTHER: Owen Linch, Teamsters; Vickie Kennedy, L&I; Jill Will, ESD.

House Amendment(s): The requirement that workers provide notices of industrial insurance claim applications to employers within ten days of receiving medical treatment is removed.