HOUSE BILL REPORT

HB 565

BYRepresentatives Wang, Cole, Allen, R. King, Brough, Vekich, Miller, Jacobsen, Hankins, Lux, Leonard, Dellwo, Fisch, Niemi, Brekke, Appelwick, Locke, Crane, Unsoeld, H. Sommers, K. Wilson, Nutley, Nelson, Fisher, Valle, Grimm, Wineberry, Jesernig and Belcher

Providing for family and medical leave.

House Committe on Commerce & Labor

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (7)

     Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisch, Fisher, R. King, O'Brien and Sayan.

Minority Report:     Do not pass.  (4)

     Signed by Representatives Patrick, Sanders, C. Smith and Walker.

House Staff:Joan Elgee (786-7166)

Rereferred House Committee on Ways & Means/Appropriations

Majority Report:     The second substitute bill be substituted therefor and the second substitute bill do pass.  (14)

     Signed by Representatives Locke, Chair; Allen, Belcher, Braddock, Brekke, Ebersole, Grimm, Hine, McMullen, Niemi, Peery, Sayan, H. Sommers and Sprenkle.

Minority Report:     Do not pass. (5)

     Signed by Representatives Fuhrman, McLean, Nealey, Silver and B. Williams.

House Staff:    Sandi Gray (786-7154)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS

MARCH 7, 1987

BACKGROUND:

Current law addresses leave from employment in a limited way.  The federal Pregnancy Discrimination Act requires employers to treat pregnancy like any other disability for purposes of employee benefits.  At the state level, a Human Rights Commission rule requires employers to grant leave for the period of pregnancy disability.  Otherwise, such issues as employee leave from work for the birth or adoption of a child or serious health condition of a family member are governed by personnel policies or collective bargaining agreements.

The growth in two wage-earner families, single parent families, and working women, among other factors, has prompted an examination of leave policies.

SUMMARY:

SECOND SUBSTITUTE:  A new chapter providing for unpaid parental and family leave for employees is adopted.  The act applies to all employers employing 15 or more persons and all full time employees (other than those in temporary or seasonal jobs) who have either completed a formal probationary period of not less than three months or one year of employment, whichever is less.  Persons who are employed by certain family members or who are domestics are excluded.

LEAVE ENTITLEMENT.

An employee is entitled to 18 workweeks of leave during any 24 month period.  The leave may be taken on a reduced leave schedule, if the leave is scheduled so as not to disrupt unduly the employer's operation.  Reduced leave may not exceed 36 consecutive workweeks.  The employer may require the employee to first use any paid leave.

Parental leave.  An employee may take parental leave to care for a birth child or adoptive child under the age of six.  The leave must be completed within 12 months of the birth or adoption placement.

Family leave.  An employee may take family leave to care for any of the following persons who has a serious health condition:

           oA child of the employee,

           oThe employee's spouse, or

           oA parent of the employee or employee's spouse who is dependent for care on the employee.

Family leave may be taken only when the presence of employee is necessary to care for the individual, as determined by a health care provider.  For a serious health condition which is expected to last more than two weeks, an employee may take intermittent leave.  For conditions expected to last two weeks or less, an employer may limit leave to leave for three such conditions during any 24 month period.  "Child", "parent", "health care provider", and "serious health condition" are all defined terms.

JOB PROTECTION AND BENEFITS PROVISIONS.

Subject to bona fide reduction in force provisions, an employee taking leave is entitled to return to the same position or a position with equivalent terms and conditions.  The taking of leave shall not result in the loss of any benefit accrued before the leave.  All policies applied during the period of leave to the classification of employees to which the employee belongs shall apply to the employee on leave.

If the employee is no longer entitled to an employer contribution to health benefits during leave, the employer shall allow the employee to elect to continue coverage by self-pay.  The premium may not exceed 102 percent of the premium applicable to those not on leave.

OTHER PROVISIONS.

Notice.  An employee planning to take parental leave shall provide the employer with prior notice.  If family leave is foreseeable, the employee shall make a reasonable effort to schedule the leave so as not to disrupt unduly the employer's operations, and shall provide the employer with prior notice.

Certification.  An employer may require a health care provider's certification stating the date on which the condition commenced, the probable duration, and the extent to which the presence of the employee is necessary to care for the person.  An employer may require a second opinion at the employer's expense.  If the health care providers disagree, the two providers shall select a third provider, whose opinion shall be conclusive.

Enforcement.  The Department of Labor and Industries shall administer the provisions of the chapter and shall adopt rules.  A violation of the chapter constitutes an unfair practice.  The agency shall investigate complaints and if it determines that there is reasonable cause to believe that an unfair practice has occurred, the agency shall attempt to eliminate the unfair practice by agreement.  If an agreement cannot be reached, the agency shall hold an administrative hearing.  The agency may order the employer, among other things, to reinstate the employee.  A private cause of action is also authorized.  The rights and remedies are in addition to any others provided for by law.

Report to legislature.  The Department of Labor and Industries shall study coverage of employers and report to the House and Senate Commerce and Labor Committees by December 31, 1989.  The department may appoint an advisory committee of citizens to assist in the study.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The threshold number of employees for an employer to be covered is raised from eight to fifteen, and the definition of employee entitled to leave is tightened. The departmental study of coverage of employers is added.

Temporary medical leave (due to the employee's serious health condition) is eliminated.  "Family leave" is separated into "parental leave" (for birth or adoption) and "family leave" (to care for family members with serious health conditions).  The limitation that an adoptive child for whom leave is taken be under the age of six is added.  Also added is the employer option to first require the employee to use up any accumulated paid leave.  Language is added that any policies applied to the class of employees to which the employee belongs apply to the employee on leave.

The requirement that the employer maintain health benefits during leave is changed to a requirement that the employer allow the employee to self-pay.

Several changes are made relating to the definition of serious health condition and family leave.  The determination of whether the presence of the employee is necessary to care for the family member is specified to be made by a health care provider.  The definition of "health care provider" is modified to delete chiropractors and other persons as determined by the department and to add advanced registered nurse practitioners. Provisions clarifying the second health care opinion which an employer may request are added.

The amount of the appropriation is reduced.

SECOND SUBSTITUTE COMPARED TO FIRST SUBSTITUTE:  The appropriation is deleted.

CHANGES PROPOSED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS:  Second substitute proposed.

Appropriation:  None.

Fiscal Note:    Attached.

Effective Date:The bill takes effect on January 1, 1988.

House Committee ‑ Testified For:     (Commerce & Labor)  Larry Kenney, Washington State Labor Council; Leslie Owen, Northwest Women's Law Center; Carolyn Cairns, American Civil Liberties Union; Lonnie Johns- Brown, Washington State National Organization for Women; Karen Keiser, Women's Committee of Washington State Labor Council; Pat Thibaudeau, Washington Women United; and Robert Ball, Washington State Nurses Association.

(Ways & Means)  Pat Thibaudeau, Washington Women United.

House Committee - Testified Against: (Commerce & Labor)  Clif Finch, Association of Washington Business; Gary Smith, Independent Business Association; and Kathleen Collins, Association of Washington Cities.

(Ways & Means)  Linda Woodruff Matson, National Association of Small Business.

House Committee - Testimony For:     (Commerce & Labor)  With the growing trends of working women with small children, single heads of households, and family members caring for elderly parents, leave is needed to accommodate the needs of employees.  Most workers have none of the benefits offered by the bill.  Legislation will assure consistency among all employers, particularly the small businesses where many women work.  Someone, often taxpayers, will pay the cost if leave is not provided.

(Ways & Means)  The bill represents good social policy.

House Committee - Testimony Against: (Commerce & Labor)  The need for leave has not been shown; many employers are already offering leave.  Employees already receive high benefits and the legislature should not add another government mandated benefit. The costs of requiring leave are nonproductive and will result in lower average wages or higher consumer prices.  The bill may discourage employers from hiring persons to avoid reaching the threshold of coverage.

(Ways & Means)  Many small businesses will be affected.  Programs already exist to care for dependent children or elderly.