Several new laws in Washington state will take effect on January 1, 2026, impacting workers, consumers, and businesses across the region.
Following the 2025 legislative session in Olympia, these laws encompass a range of topics, including an increase in the price of plastic grocery bags, changes to cannabis regulation, and expanded employee and employer rights throughout the state.
The new legislation reflects priorities established during the session, addressing issues from workplace safety to environmental sustainability to tax policy affecting high-value purchases.
Minimum Wage Increase
Washington’s minimum wage will increase to $17.13 per hour on January 1, 2026, up from the current $16.66. This represents one of the highest minimum wages in the nation.
Employers must update payroll systems and workplace notice postings in accordance with Washington Labor & Industries requirements.
Expanded Paid Family and Medical Leave Protections
House Bill 1213 expands protections under the state’s Paid Family and Medical Leave program beginning in 2026.
Workers will receive job protection after 180 days on the job, instead of the current requirement of 12 months and 1,250 hours worked. The law also lowers the employer size threshold for those protections.
In 2025, the current threshold stands at 50 employees. In 2026, that number will decrease to 25 workers, then 15 workers in 2027, and eight employees in 2028.
The measure also aims to prevent employees from taking separate blocks of protected leave under both the federal Family and Medical Leave Act and the state program. The update creates a process that allows employers to count FMLA leave at the same time as state PFML for job protection purposes.
State officials are expected to release guidance on notice requirements by late 2025.
Updated Safety Standards for Isolated Employees
House Bill 1524 strengthens safety rules for employees who work alone, effective January 1, 2026.
The law applies to hotels, motels, retail stores, security firms, and property service companies that have at least one isolated worker, such as a janitor, housekeeper, or security guard.
The update expands what counts as an “isolated” work situation and adds new requirements for panic buttons, including training and recordkeeping.
Employers who violate the rules can face fines of up to $1,000 for a willful violation and up to $10,000 for repeated violations.
Updated Workplace Violence Laws in Healthcare Settings
House Bill 1162 requires healthcare facilities to promptly investigate all incidents of workplace violence, rather than reviewing them on a periodic basis.
Facilities will be required to annually update their workplace violence prevention plan based on data and incident analysis, implement safety improvements, and report to their safety or workplace violence committees.
Expanded Leave Rights for Hate Crime Victims
Senate Bill 5101 allows workers in Washington who are victims of hate crimes to take protected time off under both the state’s paid sick leave law and its domestic violence leave law beginning in 2026.
The change adds “safety accommodations,” such as time to seek help or recover when the crime involves conduct covered by the state’s hate crime statute. This includes offenses carried out online.
Employers will be barred from retaliating or discriminating against employees who use this protected leave.
Updated Unemployment Benefits for Strike-Affected Workers
Senate Bill 5041 limits unemployment benefits for workers who lose work because of a strike beginning in 2026.
Striking employees will be ineligible for benefits until either the second Sunday after the strike begins or the day the strike ends. After that, they may receive up to six weeks of benefits following the standard one-week waiting period, unless the strike is later ruled unlawful, in which case the benefits must be repaid.
Workers must also repay any benefits that overlap with retroactive wages they receive.
For employers, any benefits paid to striking workers will be charged only to that employer’s experience rating. However, businesses may be able to lower their unemployment tax rate by making a voluntary contribution to the state trust fund if they qualify under the legislation.
Luxury Vehicle Tax
The new law creates two luxury taxes on high-value vehicles and noncommercial aircraft beginning January 1, 2026.
An 8 percent tax will apply to the portion of a vehicle’s sale, lease, or transfer price above $100,000. Commercial vehicles and those weighing more than 10,000 pounds, except motor homes, are exempt.
Business and Occupation Tax Changes
A 0.5 percent temporary surcharge will apply to taxpayers with taxable income over $250 million from January 1, 2026, to December 30, 2029.
Washington will also increase the business and occupation tax rate for manufacturing, retailing, and wholesaling to 0.5 percent starting January 1, 2027, and adjust other rate categories.
Beginning October 1, 2025, the B&O tax rate for services rose for businesses with gross receipts over $1 million.
The surcharge on financial institutions went into effect at 1.5 percent starting October 1, 2025, and the advanced computing surcharge will rise to 7.5 percent with a $75 million annual cap beginning January 1, 2026.
The legislation also clarifies the B&O tax deduction for investment income.
Expanded Tobacco Product Tax
Senate Bill 5814 expands the definition of tobacco products to categorize them under the Other Tobacco Tax.
Beginning January 1, this tax will also apply to products containing nicotine, whether they are produced from tobacco or synthetically.
The OTP tax is in addition to retail sales and use, B&O, and litter taxes that may apply.
Plastic Bag Fee Increase
Starting January 1, Washington will increase the minimum cost of plastic film carryout bags at restaurants and retailers from 8 cents to 12 cents per bag, as part of a 2020 law aimed at reducing single-use plastics.
The law encourages shoppers to bring their own bags, while the minimum charge for paper carryout bags will remain at 8 cents.
Implemented in 2021, Washington’s single-use plastic bag ban prohibits thin, 0.5 mil disposable plastic bags and sets standards for thicker, 2.25 mil reusable plastic film bags. Additionally, the law mandates that both plastic and paper carryout bags contain at least 40 percent recycled content.
Additional Consumer and Retail Protections
New statutes going into effect January 1 include provisions related to service contracts, real estate solicitation, sodium nitrite regulation, medical cannabis database, alcohol service in public spaces, insurance for affordable units, liquor food service options, wine and spirit sales limits, liquor permits and licensing, manufactured homes, disability insurer filings, cannabis advertising, cannabis industry agreements, reports of fire losses, medical debt, mobility equipment repair, bail bond agents and immigration, and automobile insurance.
