Proposed WA Legislation to Provide Wage Replacement Program for Undocumented Workers to be Heard in Committee

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OLYMPIA, WA — A proposed bill to provide a critical safety net for Washington state workers was heard in the Senate Labor & Commerce Committee today.  Senate Bill 5626, sponsored by Sen. Rebecca Saldaña (D-Seattle), would create a wage replacement program to offer essential financial relief for immigrant workers currently excluded from unemployment insurance (UI) due to their immigration status, despite contributing to the state’s economy.

From Saldaña’s Office:

Immigrant workers are essential to Washington’s workforce and economy, contributing $145 billion annually to the state’s gross domestic product. However, they face an unjust barrier: despite paying millions in taxes and playing a crucial role in local communities, they are excluded from public benefits, such as unemployment insurance due to their legal status. The bill seeks to address this inequity by ensuring workers can access benefits they have already contributed to through their employers’ payroll taxes. It would allow these funds to be accessed through a third-party administered wage replacement program, similar to unemployment insurance, ensuring financial security for workers during difficult times.

“Immigrants contribute immensely to our state,” Saldaña said. “They are not just part of our workforce; they are essential to our economy, running businesses and ensuring our daily lives run smoothly. Yet, the very people who power our economy are unable to access the benefits they deserve when they lose their jobs through no fault of their own.”

The need for this program became especially evident during the COVID-19 pandemic, when millions of workers relied on unemployment insurance for support. However, many immigrant workers were excluded from this safety net. The bill aims to ensure that all workers, regardless of immigration status, have access to the same protections.

“This is about justice for all workers and about creating a stronger, more equitable economy for all of us,” Saldaña said. “When every worker can take care of their families and contribute to their communities without fear of economic devastation, everyone benefits.”

In addition, the House companion bill, House Bill 1773, sponsored by Rep. Julio Cortés (D-Everett), will also be heard at 10:30 a.m. Tuesday, Feb. 4, in the House Labor & Workplace Standards Committee.