Blog

Paid family and medical leave premium rate is projected to increase to 1.13% in 2026; solvency issues loom

The paid family and medical leave (PFML) premium rate is projected to increase to 1.13% in 2026. (The actual rate will be based on the account balance on Sept. 30, so this is not yet final.) Further, a presentation by the PFML actuary to the PFML advisory committee yesterday shows that the financial outlook for […]

Average workers’ compensation rates could increase by 4.9% in 2026

The Department of Labor & Industries (L&I) proposes increasing the average workers’ compensation rate by 4.9% for 2026. Under the proposal, rates would increase for 293 of 327 risk classes. Average rates have increased every year since 2020; however, the adopted rates have been lower than the break-even rate since 2019. In other words, L&I […]

State Supreme Court: Job applicants can sue businesses that don’t post salary ranges in job postings, even if they aren’t applying in good faith

The Washington Equal Pay and Opportunities Act (EPOA) requires businesses with at least 15 employees to include the wage scale and salary range for a position in all job postings. Under the statute, “A job applicant or employee may bring a civil action against an employer for a violation of this section. A prevailing job […]

Washington’s workers’ compensation benefit costs remain the highest in the country; supplemental pension fund growth continues to increase

According to the National Academy of Social Insurance (NASI), Washington’s workers’ compensation benefit costs per covered worker are still the highest in the country. The most recent report was released in November 2024, and it covers data from 2022. In 2022, benefit costs in Washington were $854.28 per covered worker (up from $844.67 in 2021, […]

State average wage increases by 6.8%; various state benefits and the UI taxable wage base will increase correspondingly

The Employment Security Department (ESD) reports that Washington’s average annual wage was $95,160 in 2024—an increase of 6.8% over 2023. According to ESD, “The increase was driven by a 0.7% increase in employment and an 7.5% increase in total wages and salaries, which grew by nearly $23.5 billion in 2024.” The state average wage is […]

Increasing the assumed investment return reduces pension contributions now, but could result in future increases to contributions

The Legislature has passed ESSB 5357, which would increase the state’s assumption of investment returns that is used to determine the funded status of pension plans to 7.25%. This is a backward step in a 15-year effort to reduce the assumption so that it better reflects the level of risk. In 2010, Washington assumed 8% […]

Should the state use the LEOFF surplus to help close the shortfall, use it to fund new PERS and TRS pension benefits, or hide it?

The state is sitting on a large surplus in the Law Enforcement Officers’ and Fire Fighters’ (LEOFF) Retirement System Plan 1. The various budget proposals differ in how they would use it. LEOFF 1 has been closed to new members since 1977 and only three members are still working. As of June 30, 2023, it […]

Audit recommends changing the paid family and medical leave rate formula again

In 2022, Washington’s paid family and medical leave (PFML) program experienced cash deficits. Solvency concerns resulted in several program changes that year, including actuarial reporting requirements. (We discussed the program and its solvency problems in a 2022 policy brief.) In 2023, the Legislature appropriated $200 million from the general fund-state to the family and medical […]

Paid family and medical leave premium will increase to 0.92% next year

The paid family and medical leave (PFML) premium rate will increase to 0.92% in 2025. The Employment Security Department (ESD) made the announcement during today’s meeting of the PFML Advisory Committee. Although the 2025 rate is significantly higher than the current 0.74% rate, ESD still expects to see short term deficits in the PFML account […]

Paid family and medical leave premium rate is projected to increase to 0.91% next year (and it could hit the statutory maximum in 2027)

According to the Employment Security Department, the paid family and medical leave (PFML) premium rate may rise to 0.91% next year. (This is not yet final because the rate is based on the account balance on Sept. 30. The final rate will be announced in October.) The PFML actuary, in a PFML advisory committee meeting […]