Labor & Employment

Removes vacation pay and sick pay from the definition of "deductible income". Amends the definition of "suitable work" to apply solely to extended benefit claims. Amends the definition of "employment" with respect to certain religious, charitable, or educational organizations. Provides that the department of workforce development may make certain direct deposit disbursements under limited circumstances. Provides that the date a determination of eligibility is sent is prima facie evidence of proper service. Codifies certain administrative rules with respect to benefit payments, the filing of claims, and notice. Removes outdated or expired provisions. Removes references to dependents' allowances for purposes of calculating extended benefits. Provides that an individual who files a disaster unemployment assistance claim may be eligible for additional benefits under certain circumstances. Makes conforming changes.

Prohibits a state employee health plan, a policy of accident and sickness insurance, and a health maintenance organization that provides coverage for advanced, metastatic cancer and associated conditions from requiring that, before providing coverage for a prescription drug, the insured fail to successfully respond to a different prescription drug or prove a history of failure of a different prescription drug.

SB 245, titled "Tip pooling," authorizes restaurants and hospitality businesses to group customer tips for distribution among eligible staff under specific, defined circumstances. The bill directly affects tipped workers (like servers and bartenders) and their employers by establishing clear rules for how tips can be shared. It passed the House unanimously (44-1) on January 22, 2026, and now moves to the next legislative stage, with no further details provided on the exact conditions for pooling.