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States Watching Washington -- The Coming Wave of LTC Mandates
Watch Time: 2 Mins Reading Time: 3 Mins Presented by Hollowtree Updated April 27, 2026
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Washington was first. New York and California are close behind. And if you think the LTC mandate trend stops there, the legislative activity in at least eight other states suggests otherwise.
Here's what's happening and why it matters to you right now.
Washington's WA Cares Fund established the template. A payroll tax -- in Washington's case, 0.58 percent of wages, uncapped -- that every W-2 employee pays unless they have a qualifying private LTC plan. The opt-out mechanism is the important part: employees who act before the window closes can permanently exempt themselves from the deduction by obtaining qualifying coverage.
New York's bill -- S1179 -- has passed committee and is advancing. California's LTC task force has recommended a similar payroll tax structure. Pennsylvania, Minnesota, and Colorado all have active mandate development underway.
For employers, the strategic question isn't whether to respond to LTC mandates. It's whether to respond early -- before exemption windows close -- or late, after your employees are already paying the tax.
The employers who act now gain two advantages. First, they can offer employees a qualified opt-out path before it becomes an emergency. Second, they establish a group LTC benefit before it becomes a commodity -- while it still differentiates them as an employer.
Hollowtree tracks mandate activity in every state and designs employer LTC programs that stay ahead of the compliance curve.
Book a 15-minute briefing. Let's talk about what the mandate pipeline looks like for your specific workforce.
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Hollowtree
Insurance Specialists