by Marti Cardi, Esq. - Senior Compliance Consultant and Legal Counsel
August 23, 2018
Reliance Standard and Matrix are planning a series of Webinars to keep you up to date on this topic. The first series will be August 28 and 29, 2018 @ 11:00 am PDT / 2:00 pm EDT and will be hosted by Marti Cardi, Vice President Product Compliance, Dave Lea, West Coast Regional Practice Leader and Chris Smith, Practice Leader, Leave, Disability and ADA.
Starting in 2020, Washington will be the fifth state in the nation to offer paid family and medical leave benefits to workers. The program will be funded by premiums paid by both employees and employers. This paid leave law will allow workers to take, in a 12 month period:
- Up to 12 weeks of paid leave when they welcome a new child into their family, need to take care of an
ill family member, and for certain military-related family needs.
- Up to 12 weeks for the employee’s own serious health condition. An additional 2 weeks of paid leave may
be available if the serious health condition is pregnancy-related,
- If workers experience multiple events in a given year, leave entitlement is capped at 16 weeks total for all
leave reasons, (or up to 18 weeks if the employee’s serious health condition is pregnancy-related.
When does WAPFML go into effect?
Employers must start collecting benefit premiums from employees on 1/1/2019. Employee premiums and the employer’s premium contribution must be paid to the state quarterly throughout 2019 unless the employer has a state approved voluntary plan.
Below are some Key Issues and Provisions that you need to know right now.
|Effective Date||· Premium contributions: 01-01-2019|
· Benefits: 01-01-2020
|Employee Eligibility||· Must work 820 hours in the “qualifying period,” defined as the first 4 of the prior 5 calendar quarters; OR|
· If the employee is not yet eligible, the preceding 4 calendar quarters.
· [Equates to about 15.75 hours per week over 4 quarters]
|Covered Employer||All private employers, the state and subdivisions, and units of local government; no number of employees threshold|
|Job Protection||· Employees covered by state plan:|
o Works for an employer with 50 or more employees
o Has worked for employer for 12 months at start of leave
o Has worked 1250 hours in past 12 months at start of leave
· Employees covered by a Voluntary Plan:
o Has worked for employer 9 of last 12 months at start of leave
o Has worked 965 hours in past 12 months at start of leave
|Leave Reasons||· Employee’s own serious health condition (defined same as FMLA)|
· Family member’s serious health condition
· Bonding with new child (birth, adoption, foster placement)
· Military exigencies (same as FMLA)
|Duration in a 12-month period||· Medical leave (employee’s serious health condition): 12 weeks|
o 2 additional weeks if employee experiences a serious health condition with a pregnancy that results in incapacity
· Family leave (bonding, care for family member, or military exigency): 12 weeks
· Maximum in 12-month period:
o 16 weeks combined total for medical and family leaves
o 18 weeks if employee experiences a serious health condition with a pregnancy that results in incapacity
|Leave Calculation Method||All leaves entitlements are measured forward 12 months from date of:|
· Birth or placement, for bonding
· Employee’s filed application for leave benefits for all other leaves
|Leave Use Increments||· Full-hour increments|
· Minimum of 8 consecutive hours of leave
|Covered Family Members||· Child (any age)|
· Parent (includes step and in-laws)
· State-registered domestic partner
|Benefit AmountAWW = average weekly wage||· Employees who make 50% or less than the state’s AWW will receive 90% of their AWW.|
· Employees who make greater than 50% of the state’s AWW will receive:
o 90% of their wages up to 50% of the state’s AWW; PLUS
o 50% of their AWW in excess of 50% of the state’s AWW (subject to the $1000 cap)
|Maximum benefit||· 2020: $1,000/week|
· Adjusts annually as of September 30 each year; effective the next January 1
|Waiting Period||· No waiting period for bonding leave|
· 7 day waiting period for all other leave reasons
AWW = average weekly wage
· Net result: Employee pays 67%, employer pays 33%
· 2019 and 2020: total premium for medical and family leave benefits of 0.4 percent of employee’s wages, capped at the state’s AWW; then annual adjustments
· Premium for medical leave (employee’s own SHC) = 2/3 of tot premium
o Employee pays 45% of this
· Premium for family leave = 1/3 of total premium
o Employee pays all of this
· Employer may elect to pay all or a portion of the employee’s share of the premium
|Administration||WA Employment Security Department|
|Existing Employer Paid Leave Benefits||Employers may:|
· Adopt or retain leave policies more generous than any policies that comply with the requirements of the WA Family and Medical Leave Program ; or
· Make payments to supplement the benefit payments provided under the Program to an employee on family or medical leave.
|Employer Voluntary Plan||· Detailed provisions for employer voluntary plans that offer benefits at least as beneficial to employees as the state plan|
· No provisions (or prohibitions) for insured voluntary plans
|Relationship to Existing WA Family Leave Act||The existing WA Family Leave Act will be repealed as of 12-31-2019, the day before the new PFML program goes into effect. No information yet on how leaves started in 2019 will carry over interact with the law effective for leaves 1/1/2020.|
MATRIX CAN HELP! Matrix provides leave, disability, and accommodation management services to employers seeking a comprehensive and compliant solution to these complex employer obligations. We monitor the many leave laws being passed around the country and specialize in understanding how they work together. For leave management and accommodation assistance, contact us at [email protected].