The Joint Legislative Audit and Review Committee (JLARC) recently reviewed the state’s Paid Family and Medical Leave (PFML) program, administered by the Employment Security Department (ESD). The program offers paid leave for public and private employees, funded through employer and employee premiums.
JLARC’s preliminary report highlighted ongoing financial challenges, with program costs surpassing revenues. Members discussed key areas for improvement, including ESD’s customer service, employer audits, and measures to prevent overpayments. They also explored the impact of the Social Security cap on rates and the potential benefits of a forward-looking rate-setting approach and a financial reserve. However, these changes would require legislative action.
ESD addressed questions on call center performance, noting issues with high call volumes and long hold times. JLARC’s report recommends that the Legislature adjust the rate-setting formula and that ESD improve program administration to enhance financial sustainability.
The final report, incorporating ESD’s official response, is expected in January 2025.
Why It Matters:
- Stabilizing PFML funding
- Enhancing customer service and program oversight
- Strengthening financial and operational sustainability
WR will continue to advocate for employers’ interests and to keep the current premium share formula to minimize the continuous rising cost of doing business.
