In January 2019, the state will begin collecting premiums for the new Paid Family and Medical Leave (PFML) law. Shortly after, beginning in 2020, benefits will be available to employees, making Washington the fifth state in the nation to offer paid family and medical leave benefits to workers.
PFML will be funded through shared premiums paid by employers and workers in the form of paycheck withholdings and will be administered through the Employment Security Department (ESD). The program will allow qualified workers to take up to 12 weeks, as needed, to care and bond after a baby’s birth or the placement of a child, care for a family member experiencing an illness or medical event, care for a personal illness or medical event, and for certain military-connected events. Workers experiencing multiple events in a given year may be eligible to receive up to 16 weeks, or up to 18 weeks if the employee experiences a serious health condition with a pregnancy.
What are the requirements for employers?
Nearly all employers in the State of Washington, including cities and towns, have responsibilities under the PFML law. With very few exceptions, employers will be responsible to remit premiums, report employee wages, hours worked, and other information for all employees.
Cities with fewer than 50 employees are not required to pay the employer portion of the premium but are required to collect and forward the employee portion of the premium and abide by all reporting requirements.
The initial premium will be 0.4% of an individual’s wages and will be shared by the employer (37%) and the employee (63%). The premium may be adjusted annually after 2020 by ESD. Premium payments will be paid quarterly and will be due to ESD by the last day of the month following the end of the calendar quarter for which premiums are being paid.
Employers may manage their own voluntary plans but they must meet or exceed the state plan’s requirements and be preapproved by ESD. If your city is considering a voluntary plan please visit the Paid Family & Medical Leave page for more details.
More questions to consider
- What does this mean for my city’s collective bargaining agreements?
- Will there be financial help for my city?
- What about FMLA and Paid Sick Leave?
With the new law comes new and complex questions for public sector employers to consider. Please RSVP to join our Paid Family and Medical Leave webinar on Oct. 10, 2018, to explore the details of the law and help answer your questions about PFML.
Paid Family & Medical Leave timeline
- October 19, 2017 – PFML law takes effect, agency rulemaking begins
- January 1, 2019 – Employers begin collecting premiums
- January 1, 2020 – Paid Family & Medical Leave benefits available to eligible employees
- December 31, 2020 – Adjustment of premium rates and withholding cap
Paid Family & Medical Leave quick facts
- The premium for 2019 is 0.4% and is shared by the employer (37%) and the employee (63%).
- An employer can elect to pay the employee's share of the premium.
- Employers with fewer than 50 employees are not required to pay the employer portion of the premium.
- Premiums must be remitted quarterly during the month following each completed calendar quarter.
- Premium withholdings are capped at the Social Security cap, $128,400 in 2018.
- Assistance grants are available to employers with 50-150 employees, and employers with fewer than 50 employees who have opted-in to the employer share of the premium.
- Employers may manage their own voluntary plans but must meet or exceed the state plan’s requirements and be preapproved by ESD.
- In order to be eligible for benefits, employees must work 820 hours in the last five quarters to qualify – once they qualify, they are vested and there is no waiting period to use the benefit even if they change employers.
- Employees will receive a percentage of their weekly wage, with the lowest paid employees receiving 90 percent of their average weekly wage. Those earning more will receive a lower percentage with a maximum benefit of $1,000 per week.
- Cities are preempted from adopting additional requirements for family and medical leave for employers in their jurisdictions.
Additional resources