HB 2345 — Concerning contributions in the state paid family and medical leave program.

H-3139.1Z-0453.3 SUBSTITUTE HOUSE BILL 2345 State of Washington 69th Legislature 2026 Regular Session By House Labor & Workplace Standards (originally sponsored by Representatives Schmidt, Berry, Thomas, Ormsby, and Reeves;

by request of Employment Security Department)Department READPrefiled FIRST01/08/26. TIME 01/27/26.

Read first time 01/12/26.

Referred to Committee on Labor & Workplace Standards.

and amending RCW 50A.10.030.50A.10.030 and 50B.04.010.

(1) The department shall assess for each individual in employment with an employer and for each individual electing coverage a premium based on the amount of the individual's wages subject to subsection (4)(((4))) (3) of this section.

(2) The((The commissioner shall ((determinedetermine the percentage of paid claims related to family leave benefits and the percentage of paid claims related to medical leave benefits and set the family leave premium and the medical leave premium by applying the proportional share of paid claims for each type of leave to the total premium rate set in subsection (6) of this section))section. divide the total premium rate set in subsection (6) of this section into a medical leave premium and family leave premium, as follows:

1 SHBHB 2345 (a)(3)))(a) TheFor medicalfamily leave premiumpremiums, isan 52employer may deduct from the wages of each employee up to 40 percent of the totalfull amount of the premium rate;required.

and (b) TheFor familymedical leave premiumpremiums, isan 48employer percentmay deduct from the wages of each employee up to ((45 percent of)) the totalfull amount of the premium rate.required.

(3)(a) For ((family)) medical leave premiums, an employer may deduct from the wages of each employee up to the full amount of the premium required.

(b) For ((medical)) family leave premiums, an employer may deduct from the wages of each employee up to ((45 percent of the full amount of the premium required)) an amount equal to the difference between:

(i) The full amount of the premium required for family leave plus 45 percent of the full amount of the premium required for medical leave;

and (ii) the full amount of the premium required for medical leave.

(4)(((4))) (3) The commissioner must annually set a maximum limit on the amount of wages that is subject to a premium assessment under this section that is equal to the maximum wages subject to taxation for social security as determined by the social security administration.

(5)(a)(((5))) (4)(a) Employers with fewer than 50 employees employed in the state are not required to pay the employer portion of premiums for family and medical leave.

(6)(a)(((6))) (5)(a) On or around October 20th of each year, the commissioner must calculate the total premium rate as follows:

(ii) Subtract the balance of the family and medical leave insurance account created in RCW 50A.05.070 as of September 30th from the amount determined in (a)(i) of this subsection (6);(((6))) (5);

and (iii) Divide the difference in (a)(ii) of this subsection (6)(((6))) (5) by the prior fiscal year's taxable wages.

p.(b) The commissioner must set the total premium rate at the rate calculated in (a) of this subsection (((6))) (5) subject to the following conditions:

2(i) SHBIf 2345the (b) The commissioner mustdetermines set the total premium rate at the rate calculated in (a) of this subsection (6)exceeds subjecta rate necessary to maintain a three-month reserve at the end of the following conditions:rate collection year, the commissioner must set the total premium rate at p.

(i)2 IfHB the2345 commissioner determines the total premium rate calculated in (a) of this subsection exceeds a rate necessary to maintain a three-month reserve at the end of the following rate collection year, the commissioner must set the total premium rate at the minimum rate necessary to close the rate collection year with a three-month reserve;

(c) For the purposes of this subsection (6):(((6))) (5):

(7)(a)(((7))) (6)(a) The employer must collect from the employees the premiums provided under this section through payroll deductions and remit the amounts collected to the department.

(8)(((8))) (7) Premiums shall be collected in the manner and at such intervals as provided in this title and directed by the department.

(9)(((9))) (8) Premiums collected under this section are placed in trust for the employees and employers that the program is intended to assist.

(10)(((10))) (9) A city, code city, town, county, or political subdivision may not enact a charter, ordinance, regulation, rule, or resolution:

or p.(c) Requiring private employers to supplement duration of leave or amount of wage replacement benefits provided under this title.

3Sec. SHB 2345 (c) Requiring private employers to supplement duration of leave or amount of wage replacement benefits provided under this title.

2.

RCW 50B.04.010 and 2025 c 380 s 2 are each amended to read as follows:

p.

3 HB 2345 The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Account" means the long-term services and supports trust account created in RCW 50B.04.100.

(2) "Approved service" means long-term services and supports including, but not limited to:

(a) Adult day services;

(b) Care transition coordination;

(c) Memory care;

(d) Adaptive equipment and technology;

(e) Environmental modification;

(f) Personal emergency response system;