Washington Paid Family and Medical Leave Program - Updates for Employers

Washington has adopted several new and amended Paid Family & Medical Leave (“PFML”) rules that affect employer reporting, premium payments, penalties, and employee eligibility. These rules take effect October 2, 2026.

Key Employer Changes

• New Penalty Waiver Process: Employers may now apply for a waiver of certain PFML penalties. The new rule establishes the application process and the criteria the department will use when evaluating waiver requests.
• Payment Plans for Delinquent Premiums: Employers with outstanding PFML premium obligations may request a payment plan. The department has discretion to approve requests and has established rules regarding minimum monthly payments, missed payments, and related requirements.
• Additional Opportunity Before Penalties: Employers that fail to submit required reports will receive an additional reminder step before a formal warning letter is issued, providing more time to correct reporting issues before penalties are assessed.
• Simple Interest on Late Premiums: The department will now calculate interest on delinquent employer premiums using simple interest rather than compound interest.
• Expanded Small Business Assistance Grants: The rules clarify that the limit applies to ten grants received, rather than ten applications submitted annually, reflecting a legislative change enacted last year.
• Easier Access to Payment Plans: Employers generally will not need to demonstrate “good cause” to be considered for a payment plan. The department's default approach is to offer payment plan options to help employers resolve delinquent payments.

Employee-Related Clarifications

• Employees serving an unemployment insurance waiting period are not eligible for PFML benefits during that period.
• Job restoration protections now require employees to have worked at least 180 days since their most recent hire date before taking leave.
• Employees who owe benefit overpayments may request a lower monthly repayment amount if financial circumstances warrant.
• Employees found to have committed fraud are ineligible for benefits during the period of fraud, and any associated eligibility credits are forfeited.

Employer Action

• Review your PFML reporting and premium payment processes;
• Update internal leave policies to reflect the revised job restoration rules; and
• Familiarize yourself with the new penalty waiver and payment plan options to help minimize compliance risks.