The Paid Family and Medical Leave (PFML) program was established through a landmark compromise among business, labor, and policymakers. Two core principles were embedded in statute (RCW 50A.05.030(6)(b)(ii)): ensuring fund solvency and limiting premium rate volatility through a statutory cap of 1.2%.
WR supports the Senate version of SB 5292, which implements with JLARC’s recommendation to adopt a forward-looking rate-setting model to address projected solvency issues anticipated in 2029. However, the House amendment proposing to raise the premium cap from 1.2% to 2% threatens the program’s long-term financial sustainability, especially for single parents and small businesses already facing rising costs.
Given the current economic uncertainty, including inflation and unpredictable business conditions, WR urged the House Appropriations Committee to pause this legislation. Taking no action at this time may be the most responsible choice to avoid further strain on workers’ paychecks and employers’ operating expenses.
Washington is confronting budget shortfalls, in part due to overly optimistic fiscal assumptions. A more cautious approach is needed.
WR remains committed to the long-term health of PFML and supports thoughtful solutions to ensure its solvency. We urge lawmakers to preserve the original intent of the program: a balanced, stable, and sustainable benefit for both workers and employers.
