Washington Paid Leave and Health Insurance: What Employers Need to Know for 2027

Why 2027 matters to smaller employers

The state’s published schedule lowers the employer-size threshold for Paid Leave job protection over three years:

These are general thresholds, not a complete eligibility test. Confirm the applicable employee-count rules, exceptions and current guidance with the Employment Security Department. A quick count of people in the office is not a sufficient legal determination. Source: Washington Paid Leave employer guidance

Keep benefit payments and job protection separate

Eligibility for state Paid Leave payments is different from eligibility for job protection with a particular employer. The state generally looks for 820 qualifying hours for benefit eligibility; job protection has its own employer-size and tenure rules. An employee may qualify for payments without meeting the job-protection test. Source: How Paid Leave works for employees

There is another distinction: the employer’s obligation to contribute to the state Paid Leave program is separate from continuing the employee’s group health insurance. Businesses with fewer than 50 employees generally do not owe the employer portion of the state premium, with exceptions such as certain small-business grants. That does not establish an exemption from health-benefit continuation. Source: Employer roles and responsibilities

What happens to existing health coverage?

Beginning in 2026, employers must maintain existing health benefits for employees using Paid Leave who qualify for job protection. Employees can be required to keep paying their usual share of the health insurance premium. Source: Washington Paid Leave healthcare continuation guidance

Illustration: Assume an eligible employee normally contributes $150 a month and the employer contributes $450. A benefits procedure should explain how the employee will pay the $150 when regular payroll deductions are unavailable. The employer should not automatically shift the full $600 to the employee simply because leave began. These amounts are illustrative.

The practical challenge is often collection. Agree on a documented payment process, identify a contact for questions and coordinate it with the carrier or plan administrator. Have the applicable rules reviewed before taking action over a missed payment.

Prepare a leave-and-benefits checklist

Before leave begins, assign responsibility for five tasks:

• Confirm the situation: Record expected leave dates, the applicable employer-size calculation and employee tenure.
• Check overlapping protections: Review Paid Leave, federal FMLA and other applicable leave or accommodation obligations together.
• Document the coverage arrangement: Confirm which benefits continue, each party’s contribution and how payments will be made.
• Coordinate administration: Tell the appropriate payroll and benefits contacts how to handle the leave without unnecessary disclosure of medical information.
• Plan the return: Review restoration, deductions and carrier records before the employee’s first paycheck back.

Use secure records and limit access to people who need the information. The benefits team generally needs the administrative facts required to maintain coverage, not a broad circulation of the employee’s diagnosis.

Review notices and leave coordination

Washington provides a job-protection notice template and specific delivery instructions, including rules for continuous and intermittent leave. Build those requirements into the leave process rather than relying on a generic approval email. Use the current template and instructions. Source: Washington job-protection notice

Federal FMLA coordination also deserves a separate review. Do not assume state and federal leave automatically have identical eligibility or notice rules. Likewise, absence of Paid Leave job protection alone does not establish that health coverage may end; another law or the plan’s terms may apply.

Prepare before your next leave request

Benefit Experts can help review the benefits-administration questions and coordinate with your carrier or administrator. Your HR or legal adviser should determine the employment-law requirements for the specific leave. Contact Benefit Experts to discuss your coverage procedures.