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December 13, 2023
In 2017, Washington State enacted a paid family and medical leave law. Paid leave is funded through payroll taxes, which began in 2019. Employees in Washington State could begin to use the leave benefits beginning in 2020.
A worker in Washington State can take paid leave as long as they have worked a minimum of 820 hours in the State during the qualifying period (typically a four-quarter lookback period). Events that qualify for paid leave include serious illness or injury that prevent someone from working, a new baby or child joining the family, and certain military events. If a worker’s employer employs 50 or more employees, and the worker has worked for the employer for at least 12 months and 1,250 hours in the year preceding the leave, the worker is eligible for job protection during the leave. Depending on the circumstances, paid leave could last up to 18 weeks and can be taken on an intermittent or continuous basis.
Washington State enacted this law in 2017. Why are we talking about it now?
Each October, Washington State recalculates the payroll tax (premiums) to fund the paid leave program. The State adjusts the premium rate based on premiums contributed and benefits paid during the previous year.
Beginning January 1, 2024, the total premium rate will decrease to 0.74% (down from 0.8%). Employers will pay 28.57% of the total premium rate, and employees will pay 74.43%. If the Employment Security Department has classified a business as having fewer than 50 employees for the 2024 calendar year, that business is not required to pay the employer portion of the premium, but still must collect the employee premium.
Employer Takeaways
Notify employees of the new rate to be collected beginning January 1, 2024. On January 1, 2024, begin to collect the new premium rate each pay period from your employees’ total gross wages, not including their tips. Cease collection when an employee meets the Social Security cap, which is $168,600 in 2024. An updated employer toolkit, mandatory poster, and paycheck insert are available on the State’s website here.
*Special thanks to Ava Petrellese, our Paralegal, for her contributions to this article.
The author of this article, Patricia Tsipras, is a member of the Bar of Pennsylvania. This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice in Pennsylvania, Washington, or any other jurisdiction, nor does it establish an attorney-client relationship with any reader of the article where one does not exist. Always consult an attorney with specific legal issues.
