Published on Sep 11, 2020

ESD rejects AWC's call to repeal new PFML rule requiring employers to cover medical benefits

Contact: Candice Bock, Jacob Ewing

In June, the Employment Security Department (ESD) established new rules requiring employers to maintain medical benefits for the duration of an employee’s Paid Family Medical Leave (PFML), if any portion of the leave overlaps with federal Family and Medical Leave Act (FMLA) authorized leave.

AWC requested that ESD repeal the new rules as they go far beyond the statutory requirements and could result in significant costs for employers. However, ESD rejected the request. AWC plans to appeal ESD’s decision to the Governor on the basis that the rules are in conflict with the PFML law.

Under the new rules (WAC 192-700-010 and 192-700-020), any overlap between an employee’s PFML and FMLA leave – even a day – would trigger a requirement that the employer continue providing medical benefits through the term of PFML leave, which could extend the current 12-week commitment to as much as 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 or otherwise separated from employment—even if the reason for the lay-off or separation 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 encourages cities to review their current policies and procedures to ensure that they are following this new rule.

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