Paid Leave Legislative Activity

Washington Senate Bill 5286, signed by the Governor Jay Inslee on April 20, 2023, takes effect July 23, 2023. It is meant to address fund stabilization issues. Currently, premiums are 0.8% of gross wages, and although the law becomes effective on July 23, 2023, the rate will not change until Jan. 1, 2024.

Shortly after September 30th of each year, the agency will calculate the new premium rate for the following calendar year. The employer/employee split will also be calculated at that time and will be included in the announcement from the state agency. The total premium rate will be calculated as follows:(i) calculate an amount that equals 140% of the prior fiscal year's expenses, including the total amount of benefits paid and the state administrative costs;(ii) subtract the balance of the family and medical leave insurance fund (account created in RCW 50A.05.070 for state plan administration) as of September 30th from the amount calculated that equals 140% of the prior fiscal year's expenses; and(iii) divide the difference by the prior fiscal year's taxable wages.

As a result of this new calculation, the solvency surcharge previously enacted and which could be added to the total premium rate in order to provide sufficient revenue for state fund administration has been removed. Instead, the Commissioner must set the total premium rate which must be: (i) adjusted If the Commissioner determines the total premium rate calculated under the new process exceeds a rate necessary to maintain a three-month reserve at the end of the following rate collection year, such that the total premium rate is at the minimum rate necessary to close the rate collection year with a three-month reserve; and(ii) the total premium rate must not exceed 1.20 percent.

Companion Bills H. 4574 and S. 332 were introduced this week, establishing a PFML program (with private plan option).

The governor of Virginia recently signed into law the Virginia Organ Donor Leave Law (Senate Bill 1086). Effective July 1, 2023, Virginia will have a new law in place allowing employees to take time off for organ or bone marrow donation. Eligible employees are allowed up to 60 business days of unpaid leave during a 12-month period for organ donation and up to 30 business days of unpaid leave during a 12-month period for bone marrow donation. This law will cover employers with 50 or more employees, and these employees must be employed for at least a 12-month period and 1,250 hours during the previous 12 months. Employees will need to provide written verification from a physician that the employee is a donor, and that there was a medical necessity for the donation.