As we close out Q2 and head into summer, I’ve been thinking a lot about how curiosity drives smarter business decisions. At Equinox Business Law, that curiosity fuels everything we do, from the questions we ask to the strategies we build with our clients.

I’ve pulled together some timely updates and insights that I believe you’ll find valuable as a business leader navigating today’s evolving landscape. Whether it’s proactive planning, legal shifts, or emerging risks, our goal is to keep you informed so you can stay focused on what matters most.

If you’re curious what it’s like to work with Equinox through our General Counsel Services (GCS), here’s a glimpse. Our GCS clients receive a deeper, customized version of this content. More importantly, they walk through it side by side with their dedicated General Counsel. That means not just knowing what’s changing, but understanding what it means for your business and how to act on it.

I hope this edition gives you a taste of that proactive, collaborative approach and how we bring clarity, strategy, and connection to the table.

👉 Curious how GCS could support your business, or have questions about any of the legal updates below? Reach out to us.

WASHINGTON TAX

Sales and Use Tax Expansion: SB 5814

Washington has broadened the scope of retail sales tax through SB 5814, effective July 27, 2025, with further provisions coming into effect in October 2025 and January 2026. The new law applies tax to a wide range of services—including IT support, custom website development, digital advertising, and temporary staffing—that were previously untaxed. Importantly, digital automated services that involve significant human effort will now be treated as taxable retail services, triggering both sales and B&O taxes.

Businesses with $3 million or more in taxable retail sales in 2026 must also plan for a one-time prepayment. By June 25, 2027, these businesses must prepay 80% of June 2026 sales tax, with the remainder due by July 26, 2027. A 10% penalty applies to underpayment, although relief is available if actual sales fall short of the estimate. Companies offering services now subject to tax should review pricing structures, update billing systems, train staff on compliance, and closely examine contracts and invoices to ensure they align with the updated definitions.

 Business & Occupation Tax Changes: HB 2081

HB 2081 modifies B&O tax rates and introduces new surcharges based on gross income thresholds.

• Starting October 1, 2025, service-based businesses earning over $5 million annually will face an increased B&O rate of 2.1%.
• Effective January 1, 2027: The B&O rate increases to 0.5% for certain business in select core business categories (See Section 107 of the bill for specifics)
• Businesses with $250 million or more in Washington taxable income will be subject to a 0.5% surcharge beginning January 1, 2026, which remains effective through the end of 2029. While exemptions exist for certain industries—such as manufacturing, food and drug sales, and timber-related activities—qualifying businesses should carefully review income classification and deduction rules.
• The Advanced Computing Surcharge will also rise to 7.5%, with a cap of $75 million annually. Affected businesses will be exempt from the new high-income surcharge.
• Separately, B&O tax rates for certain financial institutions will increase to 1.5% starting October 2025. Small businesses approaching these income thresholds should begin evaluating their revenue streams and exemption eligibility.
  More here.

WASHINGTON EMPLOYMENT

Pay Transparency Amendments: SB 5408

Beginning January 1, 2026, employees in Washington who have worked for the same employer for 180 days will be entitled to job reinstatement after taking state-protected PFML, regardless of hours worked. Employer requirements will be phased in by company size, with obligations starting January 2026 for employers with 25 or more employees, and reaching those with 8 or more employees by January 1, 2028.

New rules also allow employees to stack state PFML and FMLA leave, either concurrently or separately. Employers may count FMLA leave against PFML protections if they provide written notification within five business days of the employee’s request and issue monthly updates throughout the 12-month FMLA period. Further, the minimum duration of leave has been reduced to four consecutive hours, and employers must offer health insurance during protected leave periods. Reinstatement notices and a new written form, to be created by the Employment Security Department, will also be required.

Businesses should proactively audit their PFML policies, confirm compliance procedures, and prepare for upcoming state audits.

 Paid Family and Medical Leave Program Reform: HB 1213

Beginning January 1, 2026, employees in Washington who have worked for the same employer for 180 days will be entitled to job reinstatement after taking state-protected PFML, regardless of hours worked. Employer requirements will be phased in by company size, with obligations starting January 2026 for employers with 25 or more employees, and reaching those with 8 or more employees by January 1, 2028.

New rules also allow employees to stack state PFML and FMLA leave, either concurrently or separately. Employers may count FMLA leave against PFML protections if they provide written notification within five business days of the employee’s request and issue monthly updates throughout the 12-month FMLA period. Further, the minimum duration of leave has been reduced to four consecutive hours, and employers must offer health insurance during protected leave periods. Reinstatement notices and a new written form, to be created by the Employment Security Department, will also be required.

Businesses should proactively audit their PFML policies, confirm compliance procedures, and prepare for upcoming state audits.

OREGON EMPLOYMENT

Job-Protected Leave Clarifications: SB 0069

Oregon is making targeted updates to its family leave laws beginning September 28, 2026. Under SB 0069, employees may use family leave during the closure of a child’s school or daycare due to a public health emergency, even without prior notice, unless the emergency is declared at least 30 days in advance. The bill also tightens the definition of “child” to include only those under age 18 or substantially limited by physical or mental impairment under Oregon’s disability standard.

Employers may request medical certification from employees returning from medical leave, but only if it’s in accordance with a uniformly applied policy. To ensure compliance, businesses should revise handbooks and leave policies to reflect these clarifications and make return-to-work certification practices transparent and consistent.

 New Paystub Disclosure Rules: SB 906

Effective January 1, 2026, SB 906 requires all employers to provide all newly hired employees with a written explanation of the earnings and deductions shown on their pay stubs.

Businesses should begin reviewing onboarding materials and payroll terminology to ensure alignment with the bill’s requirements. Developing a standardized paystub explanation template that can be easily updated and distributed to new hires will support compliance by the effective date.