SENATE BILL REPORT

ESHB 1581

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives Wang, Brough, Cole, Miller, Vekich, Anderson, R. King, Winsley, Hankins, Rector, Brekke, Appelwick, Jacobsen, Leonard, Dellwo, Nutley, Locke, Belcher, H. Sommers, R. Fisher, Wineberry, Sayan, Prentice, Valle, Crane, Nelson, Ebersole, Fraser, Phillips, Rust and Basich)

Providing for family and medical leave.

House Committe on Commerce & Labor

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):March 28, 1989; March 31, 1989

Majority Report:  Do pass as amended and be referred to Committee on Ways & Means.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McDonald, McMullen, Murray, Saling, Smitherman, Warnke, West, Williams.

Senate Staff:Jonathan Seib (786-7427)

                  April 3, 1989

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, MARCH 31, 1989

BACKGROUND:

The growth in the number of two wage-earner families, single parents families, and working women, among other factors, has prompted an examination of employer leave policies to better accommodate employee needs.

SHB 1319 was enacted in 1988, and is codified in RCW 49.12 as the family care law.  This law requires all employers covered by industrial welfare to allow an employee to use accrued sick leave to care for the employee's child under 18 with a health condition that requires treatment or supervision.  "Accrued sick leave" is defined by the Department of Labor and Industries.

Human Rights Commission rules address leave from employment in a limited way.  All employers with eight or more employees must grant women a leave of absence for the period of pregnancy disability.  Also, the commission's rule requiring accommodation to handicapped workers may require an employer to grant leave to an employee with a health condition under certain circumstances.

SUMMARY:

A new chapter is enacted providing for family and medical leave for permanent employees who have completed at least one year of employment and are working at least 18 hours per week.  The act applies to private employers and local governments employing 35 or more persons (50 or more until October 1, 1991) within a 20 mile radius of the employee's workplace, and to the state.

An employer may limit or deny leave to any employee whose compensation is within the top 10 percent paid to the employer's employees within the state.

A covered employee is entitled to 13 work weeks of family leave during any 24 month period for the following: (1)  to care for the employee's newborn child or adopted child under the age of sixteen within 12 months after birth or adoption; or (2)  to provide necessary care for any of the following with a proven serious health condition: the employee's child, spouse, dependent parent, spouse's dependent parent, or any other dependent relative who relies on the employee or employee's spouse for at least 25 percent of his or her financial support.

A covered employee is entitled to 13 work weeks of medical leave during any 12 month period when the employee is unable to perform the functions of the employee's position because of a serious health condition.

Both family and medical leave may be taken on a reduced leave schedule.

An employee planning to take family leave to care for a new child must give at least 30 days written notice, except that if an adoption placement comes unexpectedly, the employee must notify the employer within 24 hours of such placement.

An employee planning to take family or medical leave for a serious health condition must give at least 14 days written notice, except that if such leave is unforeseeable within 14 days, the employee must notify the employer within 24 hours of knowing when the leave is to take place.

Leave required under this act may be unpaid.  An employer may require an employee to first use accrued paid leave.  However, the total leave required is 13 work weeks.  Combined family and medical leave may be limited to 13 weeks during any 12 month period.

Employees taking leave under this act shall not lose any previously accrued benefits.  Except for allowing the employee to continue medical, dental or disability insurance coverage at his or her own expense, an employer need not grant benefits during the leave period.  Upon returning from leave, but subject to a bona fide reduction-in-force or workplace shutdown, an employee is entitled to the same position or a position with equivalent terms and conditions.

The Department of Labor and Industries shall administer the act and adopt rules.  If the department determines that a violation has occurred, it must attempt to eliminate the violation by agreement.  The department may order the employer, among other things, to reinstate the employee.  Alternatively, the department may impose a penalty of up to $1,000 for each violation.

An aggrieved employee also has a private cause of action.

Appropriation:    $300,000 to the Department of Labor and Industries

Revenue:    yes

Fiscal Note:      available

Effective Date:September 1, 1989

SUMMARY OF PROPOSED SENATE AMENDMENT:

A new chapter providing for family leave for employees is enacted.  The act applies to all private and government employers employing 100 or more persons in this state on any day of the previous 60 days.  Employees covered include those, other than independent contractors, who have been employed on a continuous basis in a permanent position for the previous 52 weeks for at least 80 hours per month.

An employer may limit or deny coverage to an employee whose compensation is within the top 10 percent paid to employer's employees within the state.

A covered employee is entitled to 12 work weeks of family leave during any 24-month period for the following: (1) to care for the employee's newborn child or adopted child under the age of six within 12 months after birth or adoption or (2) to provide necessary care for the employee's child who has a proven serious health condition.  Leave may be taken on a reduced leave schedule, and may be unpaid.

An employee planning to take leave to care for a new child must provide the employer with at least 30 days written notice (with copies of notice to employers of both parents), except for premature birth, incapacity or unexpected placement where notice is required within seven days after birth or placement.  Where foreseeable, an employee planning to take leave to care for an ill or injured child shall provide the employer with at least 14 days written notice.  If unforeseeable, then notice must be given within 24 hours of knowing when leave is to take place.  If an employee fails to give required notice, the employer may require the leave to start three weeks from the date of notice and may reduce the family leave allowed by three weeks.

Employees taking leave under this act shall not lose any previously accrued benefits.  Except for allowing the employee to continue medical, dental and disability insurance coverage at his or her own expense, an employer need not grant benefits during the leave period.

Upon returning from leave, an employee is entitled to the same position held when the leave began, or a similar position within twenty miles of an employer arranged work-site.  If circumstances have changed and this cannot be done, reinstatement shall be in any other available and suitable position. Reinstatement is not required, among other situations, or if the employee's position is eliminated by restructuring or reduction-in-force.

The Department of Labor and Industries shall administer the provisions of the act.  An employer who violates this act may be fined a maximum of $200 for the first violation,  and $1,000 for each additional violation or where appropriate, may be ordered to reinstate an employee. 

An aggrieved employee has a private cause of action upon exhaustion of administrative remedies.

The Department of Labor and Industries will cease enforcement upon the effective date of any federal act it determines, with the consent of the Legislative Budget Committee, to be substantially similar to this act.

No appropriation is provided.

Senate Committee - Testified: Clif Finch, AWB; Dick Warbrouck, Seattle Firefighters, Ned Dolejsi; Mary Wendy Roberts, Oregon Commissioner of Labor; Sue Jordon, Oregon Deputy Commissioner of Labor; Karen Keiser, Washington State Labor Council; Pat Thibeaudeau, Washington Women United; Lonnie Johns-Brown, Washington State NOW; Olaf Kvamme, Washington Association of School Administrators; Sam Kinville, County and City Employees; Jeff Larsen, Washington Assembly for Citizens with Disabilities; Mark McDermott, Department of Labor and Industries; Bob Fisher, WEA