Overview: Recently the state of Washington made a number of changes related to relevant provisions of the Paid Family Medical Leave law.
Effective Date: July 28, 2019
Details:
Background:
The PFML will provide everyone in the workforce with up to 12 weeks of paid medical leave, and up to 12 weeks paid time off to care for a new child or an ailing family member. That leave is capped at 16 weeks if the employee needs both types of time off in a one-year period. Women who experience pregnancy complications may receive an additional two weeks of leave.
Employers with 50 or more employee and all employees in Washington will be making contributions to the program, beginning on January 1, 2019. The premium for 2019 is 0.4% of an employee's gross wages, up to the Social Security taxable wage base of $132,900. Employers may elect to pay all of their employees' share of the premium, or may split the cost of the program by withholding up to 63.333% of the premium from employees' paychecks. The employer is responsible for paying the other 37.667%, and remitting total premiums to the Washington Employment Security Department (ESD) on a quarterly basis starting in April 2019. Employers with fewer than 50 employees will collect and remit employee premiums through withholding and report employee wages, hours worked, and more on a quarterly basis to the ESD.
Depending on earnings, employees will receive up to 90 percent of their wage or salary, up to $1,000 per week during their leave. Employees become eligible for the program after working 820 hours or more in the qualifying period. The qualifying period is either:
- The first four of the last five completed calendar quarters; or
- The last four completed calendar quarters.
Businesses with fewer than 50 employees will not be required to pay the employer share of the premium, but those businesses can still opt in. Businesses with fewer than 150 employees who pay into the program are eligible for grants of $1,000 to $3,000 each to cover the cost of an employee on leave.
Changes to the PFML:
Recently House Bill 1399 was signed into law making a number of changes to the PFML effective July 28, 2019 including those noted below:
Supplemental benefit payments
The PFML program will provide partial wage replacement to eligible workers beginning in January 2020 for medical leave and family leave. Under the original legislation, employers were not allowed to supplement the PFML pay of an employee on PFML with other forms of paid leave. Under the revised legislation an employer may offer supplemental benefit payments, such as vacation, sick, or other paid time off, to an employee on leave. The employee may choose whether to receive these payments. To prevent duplication of benefits for employees who are simultaneously covered by a voluntary plan and the state plan, employees must file a claim under the plan for which they have the most hours in the qualifying period. Individuals cannot work and receive PFML benefits for the same period of time.
Wages and remuneration
Wages for the PFML program are to be defined without referencing the state unemployment insurance statutes. “Wages” for the purpose of a premium assessment is the remuneration paid by an employer to an employee. For the purpose pf payment of benefits, “wages” means remuneration paid by one or more employers to an employee during the qualifying period, but an employee can elect to have wages calculated on the basis of remuneration payable.
“Remuneration” includes all compensation for personal services, previously accrued compensation, and negotiated settlements related to termination or employment agreements. Remuneration does not include tips, supplemental benefits paid by an employer while an employee is collecting PFML benefits, or payments to members of the Armed Forces for duties not exceeding 72 hours (e.g. reserve duties).
Waiting Period
The waiting period provision of the PFML will be modified from seven calendar days of leave to seven calendar days.
Garnishments
Effective July 28, 2019, PFML benefits are exempt from garnishments or wage assignments, except for child support withholding. Any agreements to assign or encumber PFML benefits are void, and the prohibition cannot be waived.
For a copy of House Bill 1399 please click on the link provided below:
http://lawfilesext.leg.wa.gov/biennium/2019-20/Pdf/Bills/Session%20Laws/House/1399-S.SL.pdf
Action Required: Covered employers should ensure compliance with the above provisions.
Please contact your dedicated service professional with any questions.
This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal advice.