Starting June 14, new rules from the Employment Security Department (ESD) will require an employer to maintain medical benefits for the duration of an employee’s Paid Family Medical Leave (PFML), if any portion of it overlaps with federal Family and Medical Leave Act (FMLA) authorized leave.

Under the federal leave act an employer is obligated to maintain benefits during the protected leave period (typically up to 12 weeks); however, the state PFML statute does not provide the same guarantee of continuation of medical benefits for employees. It was assumed that, in many cases, the two types of leave would be taken concurrently; but it is possible for them to be taken sequentially. Under the newly adopted rules, any overlap of FMLA leave– even a day – would trigger a requirement for an employer to continue medical benefits through the term of PFML leave as well, which could extend the current 12-week commitment up to 30 weeks.

Additionally, the new rules require an employer to continue to provide medical benefits for an employee covered by PFML who has been laid-off even the if the reason for the lay-off is unrelated to the leave and the employee is not entitled to restoration of employment. This provision creates a confusing new burden for employers especially if the employee has been using intermittent leave under FMLA and PFML.

AWC is taking steps to request that ESD repeal this new rule. We believe the rule goes far beyond the statutory requirement and could result in significant costs for employers.

Because the rule goes into effect on June 14, we recommend that cities make a plan for how they will comply with this rule should an employee’s PFML and FMLA authorized leave overlap.