AWB 2022 Legislative Review | Page 9

issue area reports | employment law & privacy
• The 2022 total PFML premium rate ( 0.6 %) and employer ’ s portion of the total premium ( 26.78 %) remains as calculated by ESD ( paidleave . wa . gov / estimate-your-paid-leave-payments ).
• The 2022 employee ’ s portion of the total premium was calculated as 73.22 % by ESD ( see link above ). Under the bill , subject to appropriations : » 31.00 % is paid with the general funds . » 42.22 % is deducted from the employee ’ s wages .
The bill addressed some of the concerns AWB raised regarding the UI system . Employers will still see an increase in premiums for 2022 but the final increase for the year will be less than what was originally calculated prior to the passage of this bill , which cleared the Senate 48-1 and the House 95-0 .
paid family and medical leave
2SSB 5649 modifying the washington state paid family and medical leave act
Passed / AWB Supported
Second Substitute Senate Bill 5649 was introduced by Sen . June Robinson , D-Everett . The original bill would have provided up to 14 calendar days of paid family leave , within existing leave limits , to certain employees in specified situations . It would specify that leave taken by certain employees in the first six weeks after giving birth must be medical leave , unless the employee chooses to use family leave . It expires the collective bargaining exception contained in the Paid Family and Medical Leave program . It authorizes the Employment Security Department ( ESD ) to issue a predetermination of eligibility and benefits prior to the employee ’ s start of leave and requires the Employment Security Department to publish a list of employers with approved voluntary plans on its website .
ESD notified the legislature that the fund shortage was far worse than originally reported . ESD identified a potential shortfall of $ 1 billion . The chart is a summary of the potential shortfall .
Sen . June Robinson , D-Everett , is vice chair of the Senate Ways & Means Committee . She also serves on the Senate Labor , Commerce & Tribal Affairs Committee .
Showing total across FY22-FY23 to prevent cash deficit and have a 1-to-3 month reserve Paid Family and Medical Leave
ESD also stated that an additional $ 400 million payment into the fund would be necessary to avoid the solvency tax assessment in September 2022 . This number is in addition to the “ cash deficit payment .”
baseline
middle ground
pessimistic
prevent cash deficit
$ 125 million
$ 325 million
$ 405 million
plus reserve of : 1 month
$ 231 million
$ 441 million
$ 511 million
2 months
$ 336 million
$ 556 million
$ 616 million
3 months
$ 442 million
$ 672 million
$ 722 million
Bill considered as part of AWB ’ s voting record
Favorable outcome for Washington businesses
Missed Opportunities
special edition 2022 9