Paid Family & Medical Leave proposed rules could drive up city medical benefit costs

by <a href="mailto:candiceb@awcnet.org">Candice Bock</a>, <a href="mailto:jacobe@awcnet.org">Jacob Ewing</a> | Apr 14, 2020
New proposed rules for the State&rsquo;s Paid Family Medical Leave (PFML) program could increase medical benefit costs for employers.

New proposed rules for the state’s Paid Family & Medical Leave (PFML) program could increase medical benefit costs for employers. Under the proposed rules, an employer would have to continue to maintain medical benefits for the duration of an employee’s PFML if it overlaps by even one day with any federal Family and Medical Leave Act (FMLA) authorized leave.

Under FMLA an employer is obligated to maintain benefits during the protected leave period (typically up to 12 weeks); however, the state PFML statute doesn’t guarantee continuation of benefits. 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 separately. Under the proposed rules, any overlap – even a day – would trigger a requirement for an employer to continue benefits, which could extend the current 12-week commitment to up to 30 weeks.

AWC opposed a similar proposed rule last fall, which was not adopted, and we have already weighed in with our opposition to this latest proposal.

Here is AWC’s statement submitted on the current proposed rule:

The Association of Washington Cities opposes the interpretation of RCW 50A.35.020 contained in proposed WAC 192.700.020.

The proposed WAC is contrary to the plain reading of the statute which says that employers are only responsible for continuation of benefits “If required by the federal family and medical leave act…”. The proposed rule goes well beyond the statutory requirement and could result in employers having to continue benefits for up to 30 weeks if an employee overlaps PFML and FMLA leave coverage by even one day. This would create a significant undue burden on employers with medical benefit costs ranging from $1,000 to $2,400 per month.

AWC asks that this proposed WAC be removed as it does not align with the current statutory requirement.

The deadline for comments is 5 pm on May 6. AWC encourages cities to weigh in with concerns about this proposed rule.

Submit a comment on the proposed rules

Review all of the PFML rules changes currently under consideration

More information on PFML

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