March Madness was evident in the House Commerce & Labor Committee this morning.
After playing small ball with some inconsequential bills, the committee majority, led by Rep. Steve Conway (D-Tacoma), gave labor unions two game-changing free throws. The committee moved ESSB 6035, the bill that would impose new restrictions and regulations on trade associations that operate voluntary retrospective ratings programs in workers' comp. It then amended and moved SSB 5963, a delicate and heavily brokered effort to bring the state's Unemployment Insurance tax system back into conformity with federal law.
Despite its anesthetizing pretexts of "disclosure," "sunshine," "transparency," and "accountability," just about everybody but the retro bill's most ardent supporters see it as an unconstitutional affront the free speech and association rights of voluntary groups and the small businesses that choose to join them. (Editorial coverage in that regard here, here, and here).
Meanwhile, the labor amendment to the UI bill ruptures the business community compromise over tax reform by adding both a permanent benefit increase and a provision to the law greatly expanding the ability of workers to voluntarily leave work for personal reasons and still qualify for benefits. This amendment imposes a regime that will lead to higher taxes for employers through more costly benefits and shifts more benefit money away from workers who lose their job through layoffs or through no fault of their own to those who choose to leave work for personal reasons.
The shot clock is running, but these are far from slam dunks. There is still a chance for the House to do the right thing and reject ESSB 6035 and the labor amendment to SSB 5963.
