Bill > SB5767

This bill imposes an excise tax of 7.5% on the annual compensation paid by hospitals to their five highest-paid employees who do not have direct patient responsibilities, as well as the lead hospital administrator, if they are not already among the top five. The tax applies to any "excess compensation" that exceeds 10 times the average annual wage in Washington. The revenue generated from this tax will provide funding to increase Washingtonians' access to healthcare, including programs that advance health equity and expand access to reproductive care. The bill also allows hospitals affiliated with each other to report and pay the tax together, and provides a deduction for compensation earned by covered employees for work performed outside of Washington that is not in furtherance of the hospital's business activities in the state.