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Bill

SB 5540

Concerning students' eligibility to receive unemployment insurance benefits.

2025-2026 Regular Session Introduced by Bob Hasegawa and 1 co-sponsor

SB 5540 expands Washington unemployment insurance eligibility to include students, allowing working students to receive benefits during job loss despite enrollment status.

Senate Rules "X" file.
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WeVote Research Nonpartisan
Bill Summary · SB 5540

Legislative bill overview

SB 5540 modifies Washington state's unemployment insurance eligibility rules to allow students to receive benefits under certain conditions. The bill addresses a current barrier that typically disqualifies students from UI benefits due to their student status or enrollment requirements. This represents a policy shift in how the state treats student workers seeking unemployment protection.

Why is this important

Many students work part-time or full-time jobs while attending school, yet current UI rules often exclude them from benefits during job loss or reduced hours. This bill could provide crucial financial support to working students who face unemployment, particularly affecting lower-income students who depend on wages for tuition, living expenses, or basic needs. The outcome affects both student financial stability and how Washington defines "availability for work" in its UI system.

Potential points of contention

  • Definition of student status: How the bill defines who qualifies as a "student" and whether part-time, full-time, online, or graduate students are included creates administrative and fairness questions
  • Work availability conflicts: Whether students can simultaneously claim they're "available for work" as required by UI law while maintaining full course loads raises concerns about genuine job-seeking intent
  • Cost to UI system: Expanding UI eligibility increases claims processing and potentially impacts the unemployment insurance trust fund that employers fund through payroll taxes

Compiled from official sources — confirm details with the bill’s official record.

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