Declares an intent to set minimum labor standards for some large employers in Washington state with respect to health benefit expenditures, and to further the state's interest in ensuring that its residents have access to appropriate health care services. Ensuring that employers do not eliminate employer-paid health care is important for minimizing the burden on taxpayers and the public health system, and protecting the health, safety, and well-being of the residents of Washington state.

Requires that, on July 1, 2007, and each following July 1st, every employer shall report to the director: (1) The employer's health care services expenditures in the preceding calendar year; and

(2) The employer's payroll in the preceding calendar year.

Requires an employer to either: (1) Spend at least nine percent of the employer's payroll on health care services expenditures; or

(2) Pay to the director an amount equal to the difference between the employer's health care services expenditures and an amount equal to nine percent of the employer's payroll.

Provides that an employer that is a nonprofit organization or governmental entity shall either: (1) Spend at least seven percent of the employer's payroll on health care services expenditures; or

(2) Pay to the director an amount equal to the difference between the employer's health care services expenditures and an amount equal to seven percent of its payroll.

Requires the director to: (1) Administer and enforce this act;

(2) Review reports, inspect records, and conduct investigations and audits of employment, payroll, and health care services expenditures, as the director deems necessary or appropriate, to determine whether an employer has complied with this act;

(3) Adopt rules necessary to implement this act; and

(4) Deposit payments required and civil penalties assessed under this act into the health services account established under RCW 43.72.900.