In addition to passing two bills addressing the Paid Leave program’s rate structure (2SSB 5292) and contribution allocation (2SHB 2345), the Legislature has directed the Employment Security Department (ESD) to deliver an evaluation report on the program’s solvency and integrity by November 1, 2026 in the operation budget (ESSB 5998 – Sec. 232 (27)).
As the first state to implement a comprehensive, statewide paid family and medical leave social insurance program that integrates both leave types into a single system in 2019, policymakers’ focus has been on expanding access, ensuring employer premium compliance, and strengthening worker protections. However, solvency and program integrity are emerging as critical concerns affecting long-term sustainability.
Solvency. The trust fund has faced pressure since the unexpected deficit in 2022, prompting premium increases reaching near the 1.2% statutory cap. Actuarial projections continue to show upward pressure on rates that would go beyond 2% by 2035.
Integrity. Several gaps remain. Employers lack timely access to their workers’ leave and benefit data, limiting their ability to verify usage and plan staffing, particularly for intermittent leave. Statutory limitations also restrict agency’s validity verification of family leave claims. In addition, program growth has strained ESD’s capacity to review for overlapping benefits across state programs.
WR appreciates the Legislature’s direction to incorporate advisory committee input before finalizing the report and looks forward to contributing to solutions that will strengthen the program’s sustainability and accountability.
