Paid Family & Medical Leave

Paid Family & Medical Leave

Paid Family & Medical Leave OFM Human Resource Managers Meeting July 11, 2018 1 WHAT WE WILL COVER TODAY What to expect from today Paid Family and Medical Leave Project Timeline What is Paid Family and Medical Leave? Key Details Voluntary Plans Product Overview Discussion: How can we help? 2 WHAT WE WONT COVER TODAY

How to file What the technology looks like Future rulemaking phase details 3 WHAT IS PAID FAMILY AND MEDICAL LEAVE? Paid Family and Medical Leave is a statewide insurance program. This program will be funded by premiums paid by both employers and employees. Premium assessment begins Jan. 1, 2019. Benefits begin in 2020. All eligible employees will receive up to 12 weeks as needed for family or medical leave. Up to 16 weeks may be taken for a combination of family and medical leave. Up to 18 weeks may be taken if a condition in pregnancy results in incapacity.

4 BENEFIT ELIGIBILITY Benefits are portable between jobs. Employees covered by the state program qualify after working 820 hours in the qualifying period. Employees covered by voluntary plans have the same criteria but must work 340 hours with the current employer. Employees who have worked 820 hours but dont yet have 340 hours with their employer in the voluntary plan may still take leave under the state program. 5 PAID FAMILY & MEDICAL LEAVE Why? What is it?

Family Leave Caring for family members Birth, foster or adoption of a child Medical Leave Your own medical condition Helps reduce the gender pay gap by giving everyone access to the same leave.

Certain militaryrelated events Boosts employee retention and saves businesses money. Helps achieve better health outcomes for new parents, babies and the elderly. Provides increased economic stability in times of illness or crisis for a larger proportion of the workforce. 6 Covered Events: Examples Taking time to receive cancer treatment

Caring for a sibling getting treatment for opioid addiction Recovering from a back injury following a car accident Extended hospital stay with a premature baby Spending time with a parent before a military deployment 8 Eligibility 820 Hours worked during the qualifying period. Portable across employers. 20 Hours/week -> 41 Weeks 40 Hours/week -> 20.5 Weeks Qualifying period is the first four of the last five completed calendar quarters from the leave date. Premiums

$50,000/year wage Employee: $126.67 Employer: $73.33 Small businesses with fewer than 50 employees dont pay employer premium. Still required to remit employee portion of premium and all reporting requirements Review Paid leave to care for yourself or your family. Reporting Must report employee wages and hours worked Benefit is portable between employers Reporting is done quarterly Online portal in development. More to come in late 2018. Penalties for missing or misreporting Reporting starts in April 2019 Reporting

For all employees: Name Social Security Number (or ITIN if no SS #) Quarterly wages Total quarterly hours worked Zip code of primary work location Job title Start date Reporting portal development ongoing Reporting/Remitting Website User management: If you have an account, you link to PFML tool Need UBI & FEIN to get started More to come about connecting user to the business Voluntary Plans are first in late summer 2018

Initial rollout of software will have very limited functionality New Rulemaking (Proposed) Department may audit to verify compliance 10 days to provide requested information Penalties for non-compliance to reporting requirements Specific definitions for hours worked Full-time salaried employees = report 40 hours worked Specific requirements for Faculty Employee notice requirements Similar to FMLA What about paid sick leave? Paid Sick Leave Paid Family and Medical Leave

Benefit is 100% of wage. Benefit is proportion of wage. Leave accrued in proportion to hours worked. Leave in proportion to medical need. 100% employer funded Split funding by employer (37%) and employee (63%) Paid Sick Leave and Paid Medical and Family Leave can not be used at the same time. What about FMLA?

Unless otherwise expressly permitted by the employer, leave taken under this chapter must be taken concurrently with any leave taken under (FMLA). RCW 50A.04.250 Job Protection Employees covered by the state program are entitled to job restoration when returning from leave if they meet the same requirements under FMLA: They work for an employer with 50 or more employees. They have worked for that employer for 12 months or more. They have worked at least 1,250 hours for that employer in the past 12 months. Employees covered by a voluntary plan are entitled to job restoration when returning from leave if: They have worked for that employer for 9 months or more. They have worked at least 965 hours for that employer in the past 12 months. Collective Bargaining Agreements Before Oct.

19, 2017 Parties to a collective bargaining agreement that was in effect on October 19, 2017, are exempt from all rights and responsibilities under paid family and medical leave until the agreement is reopened, renegotiated, or expires. After Oct. 19, 2017 Employers with multiple bargaining units are required to adhere to all paid family and medical leave requirements for those bargaining units whose agreement was renegotiated, reopened, or expired after October 19, 2017. To establish employee benefit eligibility, the Employment Security Department will request information from employers regarding employees

whose qualifying periods include a time period where a collective bargaining agreement exempted the employer from reporting requirements. 19 PROJECT TIMELINE Fall 2018 Create an employer account on portal MILESTONE 1: Voluntary Plans Late summer 2018 Voluntary plans become available & may be submitted Jan. June 2018 Project/

program staff hired SpringSummer 2018 Awareness presentations Spring 2018 Regular communications via listserv, social media, website and public meetings July 2018 Phase 1 rules in effect: Voluntary

plans, premium liability, collective bargaining agreements Fall 2018 Employer checklist posted to web, ahead of premiums Nov. 2018 Phase 2 rules in effect: Employer responsibilities , small

business assistance, penalties October 2018 Establish Customer Care team (call center) MILESTONE 3: Benefits Jan. 1, 2020 Benefits claims may begin to be filed MILESTONE 2: Premiums Jan. 1, 2019

Premiums begin to be assessed opt-in available Summer/ Fall 2019 Online training re: benefit filing April 30, 2019 Q1 premium submissio n Fall 2018 Spring 2019

Webinars and presentations on how to report wages and hours Mid-2019 Phase 3 rules in effect: Benefits Late-2019 Phase 4 rules in effect: Appeals Fall 2019 Spring 2020

Webinars, events and presentations on benefit claims, business grants and appeals This This timeline timeline is is an an approximate approximate timeframe timeframe for for the the implementation implementation of of the the Paid Paid Family

Family and and Medical Medical Leave. Leave. 20 Getting ready for 2019 1. 2. 3. 4. 5. Prepare to withhold premiums. Prepare to report wages and hours worked. Examine short-term & temporary disability policies. Look for mandatory flier later this summer. Choose State Plan or Voluntary Plan.

CONTINUE THE CONVERSATION Visit us online at Survey Link: OFMHR Join our listserv at Ask questions and make comments on our public forum at Questions?

Email: [email protected] 22

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