AN ACT Relating to paid family and medical leave rates;
Summary
SB 5292 modifies Washington’s paid family and medical leave program by changing how premium rates are calculated, while keeping the overall premium rate capped so it does not exceed the statutory maximum. The bill directs the Employment Security Department commissioner to set separate family leave and medical leave premium components based on the share of paid claims attributable to each benefit, and it preserves the ability of employers to deduct employee-paid premiums from wages, with different limits for family leave and medical leave. It also keeps the existing framework for annual rate-setting, reserve requirements, payroll deduction collection, and trust-fund administration.
The bill also updates reporting and oversight requirements for the program. It requires annual reporting to the Legislature on participation, premium rates, fund balances, benefits paid, demographics, outreach, and small-business assistance, and it adds actuarial reporting on the financial condition of the family and medical leave insurance account and the lowest future premium rates needed to maintain solvency. Additional provisions clarify that local governments may not enact ordinances that alter the state program for private employers, impose local enforcement, or require employers to supplement leave benefits. The act takes effect January 1, 2027.
Impact
SB 5292 amends RCW 50A.25.040 and related provisions governing Washington’s Paid Family and Medical Leave program. Its main legal effect is to change the premium-rate calculation methodology by separating family leave and medical leave components while maintaining the existing overall premium cap and reserve requirements. It also reinforces state preemption over local regulation of paid leave for private employers and expands statutory reporting duties for the department and the office of actuarial services.
Sentiment
The voting history suggests broad support for the bill, with strong majorities in both chambers and only limited opposition at each stage. The Senate and House committee votes and floor votes were consistently favorable, indicating general agreement with the need to refine premium-setting and program oversight. The absence of committee transcript material limits insight into detailed debate, but the recorded votes point to a largely positive reception.
Contention
The likely points of contention are the premium-rate changes, employer payroll deductions, and the bill’s treatment of smaller employers and local authority. Some legislators may have been concerned about how separating family and medical leave premiums could affect workers, employers, or program stability, as well as whether the premium cap and reserve rules are sufficient to keep the fund solvent. The preemption language limiting city, county, and other local governments from creating their own paid leave requirements for private employers may also have been a point of disagreement, especially for supporters of local labor standards or expanded leave benefits.
AN ACT Relating to safeguarding the viability of the paid family and medical leave program by restricting double-dipping with employer-paid benefits and identifying methods for reducing errors and detecting fraudulent or otherwise ineligible claims;
AN ACT Relating to responding to federal guidance on tax liability issues in the state paid family and medical leave program by modifying the distribution of employer and employee contributions between family and medical leave premiums without affecting how the total premium is divided between employees and employers;