WSR 26-14-070 (26-14)

FINANCIAL MANAGEMENT

[Filed June 26, 2026, 11:07 a.m.]

Proposal is exempt under RCW 34.05.310(4) or 34.05.330(1).

Title of Rule and Other Identifying Information: WAC 357-31-246 Is an employee who is receiving partial wage replacement for paid family and/or medical leave under Title 50A RCW entitled to employment protection?, and 357-31-2465 Must employers continue to provide health insurance benefits when an employee is receiving partial wage replacement for paid family and/or medical leave under Title 50A RCW?

Hearing Location(s): On August 13, 2026, at 8:30 a.m., via Zoom meeting (with call-in option) at https://ofm-wa-gov.zoom.us/j/81638721176?pwd=fZiSV1cxiwljSEPvpDaghZNKBmEhVW.1, ID 816 3872 1176; or phone 253-215-8782, Passcode 497654.

Date of Intended Adoption: August 20, 2026.

Submit Written Comments to: Brandy Chinn, Office of Financial Management (OFM), 1500 Jefferson Street S.E., P.O. Box 47500, Olympia, WA 98504, email brandy.chinn@ofm.wa.gov, by 11:59 p.m., August 6, 2026.

Assistance for Persons with Disabilities: Contact OFM, TTY 711 or 1-800-833-6384, by 11:59 p.m., August 6, 2026.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The proposed new WAC 357-31-246 is to address employment protection for employees who are receiving partial wage replacement for paid family and/or medical leave (PFML) under Title 50A RCW. The proposed new WAC 357-31-2465 is to require employers to provide health insurance benefits when an employee is receiving partial wage replacement for PFML under Title 50A RCW.

Reasons Supporting Proposal: E2SHB 1213, chapter 304, Laws of 2025, passed during the 2025 legislative session with an effective date of January 1, 2026. The bill implements several changes to the PFML Act (PFMLA), including lowering the employer size threshold for employment protection eligibility and permitting employers to reduce PFML employment protection based on an employee's prior use of leave under the federal Family and Medical Leave Act (FMLA). State human resources (HR) issued an HR Directive 25-02, effective January 1, 2026, to address the administration of PFMLA, specifically as it relates to employment protection for state agencies and higher education institutions. Employment protections include employment restoration and continuation of health benefits. In accordance with WAC 357-01-145, an employer is defined as "a state agency, an institution of higher education, or a related higher education board." E2SHB 1213 amends RCW 50A.35.010 Employment protection, to allow employers the option to reduce an employee's PFML employment protection period by subtracting the time the employee is on FMLA, provided FMLA was taken no more than 52 weeks prior to taking PFML. While employers have the option to reduce an employee's PFML employment protection, HR Directive 25-02 directs employers to continue the practice of considering the state as one employer and not offsetting an employee's PFML employment protection period by leave previously taken under FMLA. E2SHB 1213 amends RCW 50A.35.020 Continuation of health benefits, to require an employer to maintain health care coverage during any period of PFML when the employee is also entitled to employment protection.

Statutory Authority for Adoption: RCW 41.06.133.

Statute Being Implemented: RCW 50A.35.010 and 50A.35.020.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: OFM, governmental.

Name of Agency Personnel Responsible for Drafting, Implementation, and Enforcement: Brandy Chinn, 1500 Jefferson Street S.E., Olympia, WA 98504, 360-878-2901.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is not required under RCW 34.05.328. Rules are related to internal government operations and are not subject to violation by a nongovernmental party. See RCW 34.05.328 (5)(b)(ii) for exemption.

This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:

Is exempt under RCW 19.85.025(3) as the rules relate only to internal governmental operations that are not subject to violation by a nongovernment party.

Scope of exemption for rule proposal:

Legal Affairs Counsel

WAC 357-31-246Is an employee who is receiving partial wage replacement for paid family and/or medical leave under Title 50A RCW entitled to employment protection?

Consistent with RCW 50A.35.010, an employee who is receiving partial wage replacement for paid family and/or medical leave (PFML) under Title 50A RCW is entitled to employment protection if the employee began employment with the employer at least 180 calendar days before taking the leave. Employers must not offset an employee's PFML employment protection period by leave previously taken under the Family and Medical Leave Act of 1993. Following the absence, the employee is entitled to employment protections consistent with RCW 50A.35.010, including return to the position held by the employee when the leave commenced; or restoration to an equivalent position with equivalent employment benefits, pay, and other terms and conditions of employment. Nothing in this provision is intended to require more generous job protections than are provided in chapter 50A.35 RCW.

WAC 357-31-2465Must employers continue to provide health insurance benefits when an employee is receiving partial wage replacement for paid family and/or medical leave under Title 50A RCW?

Consistent with RCW 50A.35.020 and WAC 192-700-020, an employer must continue to provide health insurance benefits when an employee is receiving partial wage replacement for paid family and/or medical leave taken under Title 50A RCW. The employee is responsible for any existing employee-paid premiums necessary to maintain health insurance benefits.