Process starts for Paid Family and Medical Leave Program

Starting this month, eligible employees in Washington and most employers will begin paying premiums through a statewide insurance program that will go toward Paid Family and Medical Leave benefits starting in January of 2020.

Senate Bill 5975, which was overwhelmingly approved by the state Legislature and signed into law by Gov. Jay Inslee during the 2017 legislative session, incorporated the paid family leave aspect of Initiative 1433 that was easily approved by voters in 2016. Initiative 1433 will incrementally raise the state’s minimum wage to $13.50 by 2020 and required employers to provide employees with one hour of paid sick leave for every 40 hours worked by the employee.

State Sen. Mark Schoesler of the 9th Legislative District voted for Senate Bill 5975, while State Reps. Joe Schmick and Mary Dye voted against the bill.

To qualify for Paid Family and Medical Leave, employees must work 820 hours or more in the qualifying period. The qualifying period is the first four of the last five completed calendar quarters starting from the day the employee intends to take leave, according to the ESD.

Family Leave can be used in the following situations, according to the ESD: care and bond after a baby’s birth or the placement of a child younger than 18; care for a family member experiencing an illness or medical event; and certain military-connected events. Medical Leave can be used in order to “care for yourself in relation to an illness or medical event.”

When the benefits become available in 2020 and if eligible, employees will be entitled to take up to 12 weeks of paid leave (up to 18 weeks in special circumstances).

Organized as an insurance program, Washington’s Paid Family and Medical Leave Program is funded through premiums. Most employers will be required to withhold premiums from their employee’s paychecks, and many employers will be required to pay into the program as well.

The premium in 2019 is set at 0.4 percent. For example, if an employee has earned $2,500 of gross pay in a single pay period, the total premium would be $10 for that pay period. An employer with more than 50 employees may choose to pay this entire premium on their own, or withhold a portion from their employees. In the above scenario, the maximum amount the employee could have withheld from their paycheck is $6.33.

Employers with fewer than 50 employees are exempt from paying the employer portion of premiums, but they still must remit employee premiums and report employee wages, hours and more to the state’s Employment Security Department (ESD). Premiums need to be reported quarterly, and will need to be remitted before the end of the month after each completed calendar quarter.

Grants will be available for small business to help cover the costs of hiring temporary employees when a member of their team uses Paid Family and Medical Leave. To be eligible for these grants, the business must average 150 or fewer employees. Businesses that average fewer than 50 employees must pay the employer portion of the premiums to be eligible.

Grants of up to $3,000 are available and can be issued 10 times per year to a single employer. A business must apply for these grants, and more information about the application process will be available in the future.

A grant of $1,000 is available to businesses who experience significant wage-related costs due to an employee’s leave when using Paid Family and Medical Leave.

Participation in the program is generally mandatory. Exceptions include workers who are: federal employees; employed by a federally recognized tribe; subject to a collective bargaining agreement that was in existence on or before Oct. 19, 2017; self-employed.

Self-employed people may opt in to gain access to the benefit. Benefits for all eligible employees in the program depend on how much they earn in a typical week.

Employees covered under a CBA that was in existence on or before Oct. 19, 2017 are not subject to the rights or responsibilities of paid family and medical leave until the agreement is reopened, renegotiated, or expires.

Some employers may choose to offer benefits through a private plan called a voluntary plan. If an employer has an approved voluntary plan, they are required to offer benefits that are either equal to or greater than the state’s plan.