A new bill introduced for the 2021 session would expand the number of employees eligible for benefits under the state’s paid family and medical leave (PFML) program and potentially drive-up costs for the program.

HB 1073, by Rep. Liz Berry (D–Seattle), makes several changes to expand the state’s PFML program. Those changes include:

• Making employees eligible to take benefits after $1000 in earnings.
• Expanding the definition of “family member” to any “blood” relative or person with a “close association” equal to family. This increases the number of potential triggering events that employees could use as a reason to apply for PFML.
• Extending job protection provisions to any employee that has been on the job for at least 90 days. The bill also extends job protections to small employers (fewer than 50 employees).
• Requiring employers to continue medical benefits for eligible employees taking leave.

Under current law, employees are only eligible for benefits after they have been on the job for at least 820 hours in the previous 12 months, “family members” are limited to immediate family, employee job protections only apply to larger employers (50+ employees) and then only to employees that have worked at least 1,250 hours in the previous 12 months. Employers are already required to continue medical benefits for eligible employees on leave by administrative rule.

The bill represents a major expansion of eligible employees for the program. More city employees could become eligible to access benefits or could access benefits much sooner in their tenure. The bill could also allow some part-time or seasonal employees to access benefits that otherwise would not under the current law. For example, at the state minimum wage ($13.69/hour), it would take an employee around 73 hours before they were eligible for full benefits under the bill.

It is possible that the bill could drive PFML premium rates up for employers and employees. Premium rates for both employers and employees are based on the total covered wages paid by employers statewide, relative to the amount of money in the state PFML fund. A large increase in covered wages (by increasing the number of eligible employees), coupled with additional draws on the account (as more people potentially take paid leave for more reasons) could prompt future premium increases. It is not yet certain how the bill is expected to impact premium rates in the near term.

Dates to remember

HB 1073 is scheduled for a public hearing in the House Labor & Workplace Standards Committee at 8 am on Friday, January 15.